The World Bank states that approximately 100 million adults in Pakistan don’t have access to formal and regulated financial services. This means that more than 50 per cent of Pakistanis don’t have access to formal credit because they can’t be profiled through conventional means.
CreditFix is a mobile-led digital lending platform that helps new-to-credit and thin-file customers build credit scores. The fintech uses credit insights from machine learning by using 5,000+ data points to profile new customers and help them secure loans to buy revenue-generating assets such as livestock, smart grid, farm equipment or cars that can ultimately improve their standard of living and make a positive social impact on society.
Founded in 2016, CreditFix is privately held and has headquarters in Islamabad.
The mission of the company is to “enable access to fair and transparent credit to millions of unscored Pakistani citizens.” The company uses alternate data and technology to approve borrowers that other lenders are missing, and help lenders make more accurate credit decisions.
CreditFix makes use of digital data and predictive modeling to figure out what the potential borrower’s willingness to repay is. A benefit of the service being provided by CreditFix is that it helps save consumers from the dubious practises of the informal credit market, including loan sharks. The fintech helps provide economic assistance to low-income consumers and at the same time, also helps the company’s partners reach their target market in a efficient and sustainable manner.
CreditFix makes use of a mobile application on smartphones. Users have to simply download the application, register it, choose the product, fill out the basic application form and then submit it. They will then receive the product after the application has been reviewed and approved.
The company wants to provide financial services to millions of unbanked or underbanked citizens of Pakistan and help improve their economic outcome. According to its website, it has already partnered with Meezan Bank, Careem, Reon Energy Solutions and Engro Corp.
CreditFix was recently announced as the winner of the Fintech Disrupt Challenge 2017 where the company received $100,000 as prize money. Funded by the Bill & Melinda Gates Foundation and UK Aid, the Fintech Disrupt Challenge looks for ideas worthy of creating substantial social impact.