How does MicroMoney work?
The history of MicroMoney constitutes two years of continuous hard work. At the time of its creation, the main goal of the company was micro-financing in the money lending industry. Since then it has provided financial services to individuals and SMEs to meet their standard financial needs. Their back offices are located in Cambodia, Myanmar, and Thailand.
MicroMoney has made it pretty easy for its customers to apply for loans. They don’t need to fulfil any prior requirements. They just need to fill out an application through the mobile app. On the back end, this application approves loans within 15 seconds with the help of a machine learning algorithm. After that funds are delivered to the approved clients in one hour. Their offices in Myanmar and Cambodia are showing great profits since the launch of their product.
Two years of hard work really paid off and they have finally reached 500 followers on Facebook and their mobile app has a rating of 4.8 on google play store. Their customer database shows a total of 95,000 users and among those 90 percent were able to get their first loan through MicroMoney.
MicroMoney cares deeply about the needs of its clients and thus update their products regularly to provide best possible services to their client and to prevent any inconvenience. They have a team of highly skilled technical and professional experts who are fully devoted to achieving the goal of the company. They are working day and night to come up with better financial products for their clients and to expand their business in the market. As a fruit of their hard work, they issued 21 loans approximately $800 in December and by 2017 increased that volume to &4.9 million.
The growth of the business in the past two years has proved that there was a high demand for such a product in the market. Individuals and SMEs benefitted greatly from the financial services provided by MicroMoney.
Scoring App by MicroMoney
MicroMoney has their own mobile app which is powered by Artificial Neural Network. This app works on a special scoring algorithm. The algorithm works on 10,000 parameters and on the basis of these parameters a customer’s trustworthiness can be predicted. As it is a machine learning algorithm, its efficiency increases with the increase in the amount of data collected. The system delivers the score in compliance with the global FICO system.
Once the app is installed on a customer’s mobile phone, he has to sign an agreement allowing for personal data processing. The scoring system analyzes everything, from customer’s behaviour during processing of the application to his contact list, SMS, online activities etc. In addition to these details, data is also gathered from social networks used by the client. This way a very detailed and efficient profile of the user is created without much hustle.
This is the efficient way to provide microloans to people who have no access to banking services. It also proves beneficial in aggregating Big Data. This Big Data is valuable for financial, e-commerce, insurance and telecom industries.
Parameters collected and analyzed by Scoring Algorithm
- Time taken by the client to fill each field on the form.
- Client’s playlist.
- Calling history of the client.
- The frequency of updating salary field.
- The exact time when client filled the application.
- Time taken by the customer to fill the address field.
- The duration of using the smartphone by the customer.
- Does the customer have contacts who already registered clients?
Analyzing Big Data
Advantages of Scoring Algorithm
- This predictive algorithm reduces the risk of accepting new clients.
- It gives the confidence to work with clients who have no banking history.
- With this algorithm in play, it is less risky to expand the business in the new market.
- The Big Data aggregated through this algorithm is beneficial for other businesses as well.
- The costs are reduced to one order as compared to other banks and MFIs.
Reduced Risks on Loans
The scoring algorithm is a learning algorithm. As the size of the data increases so does the efficiency of the algorithm, which in turn reduces the risk of loan non-repayment.
Values provided by MicroMoney
Developing a Crypto Ecosystem
With time MicroMoney will develop to be a part of a crypto ecosystem. They are planning on doing so by allowing the Blockchain companies to efficiently scale their customer base by getting access to our open source credit bureau.
Micro Loans for people
MicroMoney is helping people with no credit history to acquire short-term loans. They have even simplified this process through their mobile application. Customers can submit online applications without providing extra documents.