This South Asian Fintech Startup is Truly Revolutionizing the Digital Financial Services. Owais Zaidi was struck in traffic when a man with ruined Taxi came to him and asked for Rs. 1000 as a loan to change the tires of Taxi. He told Owais that the market loan will cost him 50 rupees a day interest. Zaidi felt sorry for this poor man and gave him 1000 rupee as charity. He felt sorry for thousands of underbanked consumers who have to face such biased lending practices.
This South Asian Fintech Startup is Truly Revolutionizing the Digital Financial Services
Owais Zaidi Explained that:
The guy looked genuine so I gave him money, but it really bothered me how the poor are exploited. Based on my experience consulting with banks, I know how straight-jacketed they are in their policies as well as thoughts
Due to this incident, Zaidi founded CreditFix in 2016, A firm for unbanked customers that draws an alternative data to access creditworthiness.
CreditFix plans to launch a pilot program in August having 50,000 potential customers. The company will incorporate borrowers work histories, mobile top up records and utility payments to generate credit scores. These scores will be view able by lenders who use the market place.
The core goal of CreditFix is to facilitate the underserved and unserved segments of the population in getting access to fair credit, primarily for revenue generating assets
CreditFix’s launch was supported by Digital Financial Services Innovation Lab. DSF Lab is a Bill and Melinda Gates Foundation accelerator that supports fintech startups in markets of South Asia.
DSF Lab not only grant money to fintech companies but also develop an investment model for them. Their basic goal is to connect startups with investors who can provide funding and advice.
DFS Lab Director Jake Kendall Said:
In Silicon Valley, it’s still hard, but there’s a whole really rich ecosystem that happens — networking, mentorship, an ethos and community around being an entrepreneur.“Those elements are really missing in developing countries. It’s very hard to connect with people who are at the global frontier.”
95% Pakistanis lack access to formal credit because they can’t be profiled through conventional means. No doubt Owais Zaidi has taken a very positive step that will enable access to fair and transparent credit to millions of unscored Pakistani.