{"id":19684,"date":"2021-08-19T08:22:28","date_gmt":"2021-08-19T08:22:28","guid":{"rendered":"https:\/\/finbraine.com\/?p=19684"},"modified":"2024-03-19T09:50:49","modified_gmt":"2024-03-19T09:50:49","slug":"mobile-money-providers-are-becoming-new-age-lenders","status":"publish","type":"post","link":"https:\/\/finbraine.com\/fr\/mobile-money-providers-are-becoming-new-age-lenders\/","title":{"rendered":"Mobile Money Providers Are Becoming New Age Lenders"},"content":{"rendered":"
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Mobile Money Providers Are Becoming New Age Lenders<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Who Are Mobile Money Providers?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Access to credit has been a problem for both individuals and businesses. Although there are many traditional ways to apply for credit, for example, banks and other financial institutions. But not all of them provide credit to all kinds of users. If they provide, they have strict requirements.<\/p>

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That\u2019s when these users apply for credit through different platforms. Mobile Money Providers, for instance. Mobile Money Providers or MMPs are the companies or lenders who provide credit through the mobile platform.<\/p>

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Yes, it is possible to borrow money from mobiles. Due to its ease of use and wide availability, mobiles have become the most popular medium to have access to easy credit for users.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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How MMPs Are Leveraging AI?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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There are 3.8 billion smartphone users worldwide. Which concludes to almost half of the worldwide population. Everyone needs credit and MMPs are making it easy for them by providing it through their smartphones.<\/span><\/p>\n

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A revolutionary change in the finance sector has been seen after the invention of the internet. Banks were the hardest to adapt and that\u2019s when fintech companies came into existence. With the help of technology, Mobile Money Providers are giving banks a tough fight.<\/span><\/p>\n

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MMPs are using eKYC to quickly scan pictures, photo IDs, and other documents at the click of a button. It not only saves a lot of time but gives the customer a sense of ease that he no longer has to visit the bank, fill lengthy forms, and wait for several days to take a loan.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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eKYC<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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KYC<\/span><\/a> is the process of verifying a customer’s identity. It is mainly used by banks or other financial institutions to figure out whether a customer is who he says he is. His documents are scrutinized by a financial institution to perform due diligence.<\/span><\/p>\n

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eKYC on the other hand is conducting KYC through online platforms. eKYC or Electronic Know Your Customer is a paperless as well as remote KYC process. With the rise of the internet in every field, even financial institutions and banks had to digitalize. That\u2019s when eKYC was introduced in the sector.<\/span><\/p>\n

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Implementing eKYC was not an easy task though. That\u2019s when companies evolved and provided fintech services to the financial sector. eKYC is made possible with the use of AI and machine learning.<\/span><\/p>\n

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Since tempering with ID proofs is possible, that\u2019s why technical revolutionists such as <\/span> <\/span>FinBraine<\/span><\/a> created products that not only provide quick eKYC but also help prevent falsification of the data.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Why is eKYC Beneficial?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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  1. The ability to conduct remote KYC makes eKYC a convenient process. The customer doesn\u2019t have to move away from his place and stand in lines to get the KYC done.<\/span><\/li>
  2. eKYC reduces the time that otherwise would have been spent in collecting and processing the document verification.<\/span><\/li>
  3. Electronic KYC is also helpful in reducing the cost.<\/span><\/li>
  4. With the implementation of AI, Big Data, and machine learning, eKYC is as safe as the traditional KYC.<\/span><\/li>
  5. Customer satisfaction is the key to every business and that\u2019s where eKYC has excelled.<\/span><\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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    Alternate Credit Scoring\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    MMPs are also thriving because instead of using traditional credit checks, they use alternate credit scoring. By using AI technology, other factors such as utility bill payments, spending patterns, social media profiles, travel history, etc. are checked.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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    How FinBraine Can Help?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    MMPs have to deal with many problems such as:<\/span><\/p>

    \u00a0<\/span><\/p>