Michu 2.0 Launched
Addis Ababa, Ethiopia, September 14, 2023, Cooperative Bank of Oromia, and Kifiya Financial Technology (Kifiya) today announced the launch of the upgraded Michu 2.0, Uncollateralized digital lending platform at the Cooperative bank’s DX valley.
The partnership allows Coop bank to tap into Kifiya’s digital lending technology and offer lending solutions targeting Micro, Small, and medium businesses (MSMEs), providing access to credit, through Qena’s groundbreaking and cutting-edge credit scoring systems.
Qena’s AI-powered solution is a true game-changer for unlocking resources for the underserved in Ethiopia. The platform bridges the gap between financial institutions and the unserved segments, offering cost-effective credit management, appropriate products, and collateral solutions. With Qena’s digital lending and credit management platform, Michu can now efficiently manage small loans, enable the bank to reach new borrower segments effortlessly.
In a region where obtaining traditional loans has long been an arduous task, Qena’s first platform Michu, offered by the cooperative bank of Oromia is transforming the landscape of financial inclusion in Ethiopia, empowering a diverse range of borrowers. The platform, known for its groundbreaking Michu 1.0 products, has made a remarkable impact by disbursing over 1.4 billion Birr in uncollateralized working capital loans, addressing over 100,000 MSMEs and have impacted the lives of women, youth, and individuals with disabilities by creating economic opportunities and generating jobs.
The enhanced Michu platform aims to bridge the persistent gap between the demand for credit and its availability. It boasts a simplified approach, doing away with cumbersome paperwork and stringent credit history requirements. Now, entrepreneurs and small businesses with minimal credit history can access the financial support they need to fuel their ambitions
“We are excited today to join hands with Kifiya as we expand our digital financial offerings and introduce the enhanced Michu platform Michu 2.0, a digital lending solution. It’s a platform that bridges the gap between dreams and reality, with simplicity at its core. The days of endless paperwork and stringent credit history requirements are over; Michu is here to make the impossible possible.”, says Deribie Asfaw, President of Cooperative Bank of Oromia.
“Today’s partnership with Coop bank marks an exciting era for the Ethiopian Digital Economy as Kifiya’s Qena technology heralds uncollateralized digital lending in the country. With the help of our AI-powered credit scoring digital lending platform, we hope to address the needs of uncollateralized finance in MSMEs sector in Ethiopia”, says Munir Duri, CEO of Kifiya Financial Technologies PLC.
The upgraded Michu 2.0 introduces advanced tech updates, brand new products, and clear segmentation to MSMEs, and individuals. It is planning to disburse 10 billion birr and create 500,000 unique customers. The Key Features for the loan product offering dubbed Michu Guya and Michu Wabi products include:
- Michu Guyya: targeted towards nano-sized businesses to offer rapid working capital. The Credit limit ranges from 2,000 to 15,000 Birr, providing a lifeline for small-scale entrepreneurs.
- Michu Wabi: targeted towards micro-retailers, coffee houses, and similar enterprises, and caters to their working capital requirements. The Credit limits ranges from Birr 50,000-100,000, coupled with flexible terms, empower these businesses to grow and thrive.
The eligibility criteria are designed to be inclusive, ensuring that anyone with a Coop bank account, a smartphone, and a source of income can access the support they require. Technology plays a pivotal role in this transformation, with Michu utilizing advanced credit scoring models, risk management, and automation to facilitate rapid decision-making processes.