PERC has partnered with Experian MicroAnalytics (EMA) to develop an innovative solution to expand access to finance in emerging markets, especially for the rural poor. Financial Identity Risk Management (FIRM) is a solution that will enhance the data needed to assess a borrower’s credit risk and estimate their borrowing capacity.
FIRM was featured in a recent ICT Update, focusing on themes relevant to agricultural and rural development in Africa, the Caribbean and Pacific countries. The article, “Big data for smallholders,” features a brief description of how FIRM works, how FIRM enhances the financial infrastructure and FIRM’s development impact.
PERC and EMA also produced a video that explains FIRM. It can be viewed on PERC’s website.
Given the nearly 2.5 billion people working on 500 million smallholder farms, the quick development of FIRM can promote access to much needed finance for this increasingly underserved segment. FIRM provides lenders with needed information so that they, in turn, can supply affordable credit to farm workers–credit that is necessary to invest, build assets and to generate wealth.
FIRM is a solution that will help lenders enter rural markets in scalable and cost effective ways, overcoming hurdles to make affordable finance available to an estimated 11 million unbanked households in Kenya and Tanzania and an estimated 15.4 million unbanked households in Indonesia during the first five years of operation, with a rapid expansion of credit impacts thereafter.
About: PERC is a 501c3 headquartered in Durham, NC. Using innovative market-based information solutions, PERC dedicated to increasing financial inclusion globally by more than any other institution. PERC undertakes research and development to enable more robust asset development and wealth creation–what it calls “information-led development.”
Source: PERC Announcement