LendXS, the digital credit services platform from Financial Access, has developed a tailored credit score card for Musoni designed to make it easier for financial institutions to assess the risk of lending to smallholder farmers and other rural customers.
The LendXS credit score card can easily be added to the normal Musoni loan application workflow for any organisation, enabling users to collect the data needed to generate scores quickly and easily, in either the main Musoni system or in our Digital Field Application, in both online and offline mode. The fields and criteria in this tab are bespoke to the lender’s requirements for data collection. An example of the LendXS score card is shown below.
Watch the short video below to see how it works:
Once the loan application has been created in Musoni, the relevant data from the LendXS scorecard is automatically fetched from Musoni using our standard APIs and sent directly into the LendXS scoring platform.
The scores generated will focus on specific agri-value chains and will equip the loan officers with an accurate and predictive analysis of the farmer. The credit scoring logic used by LendXS considers five risk categories that impacts the credit risk of an applicant. These are (1) the applicant’s profile, (2) ownership & collateral, (3) farm profile & management, (4) financial profile, and (5) climate risk management practices. An example of the scoring for a loan application within LendXS is shown below.
Once the score has been generated it is then pushed automatically back into Musoni using our APIs from where it can be used as part of an organisation’s normal loan appraisal process.
Speaking about the integration, Eelko Bronkhorst, the CEO of LendXS said: ‘The partnership with Musoni allows MFIs to now onboard smallholder farmers and other rural borrowers at lower risk and cost and to develop more profitable and sustainable rural loan portfolios. By partnering with Musoni and its MFI customers LendXS will be able to accelerate rural financial inclusion and to help improve the livelihoods of farmers globally‘.
Musoni’s CEO, Cameron Goldie-Scot, added: ‘Lending to smallholder farmers has always been considered risky due to the limited data available for assessment and the lack of automated tools to process the key metrics that determine affordability. We’re very excited therefore with the integration with LendXS, which gives financial institutions more insight and control in managing better balanced, lower risk rural credit portfolios.‘
To get started with the real-time credit scoring features offered by LendXS, contact your Musoni account manager or email firstname.lastname@example.org. For a longer video explaining more about LendXS, please click here.
This integration is part of Musoni’s platform approach. At Musoni we believe that the future of digitalisation in microfinance will revolve around multiple different technology solutions working seamlessly together. More information on other solutions that have been integrated with Musoni can be found here.