By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
The Inter-American Development Bank (IDB) has approved a $150,000 project that will see Transfer Solutions Providers (TSP), the Mango card provider, develop a method for assessing the creditworthiness of so-called ‘unbanked’ clients.
TSP, with its electronic wallet that can be accessed via the Internet, SMS or card, is being tasked with developing a Credit Risk methodology that can screen ‘unbanked’ Bahamians seeking seeking micro loan facilities.
The programme is ultimately designed, Tribune Business understands, to help small businesses, entrepreneurs and the self-employed, such as hair braiders, fishermen and surrey drivers, who have long complained about difficulties in obtaining loans from commercial banks and traditional lenders.
This is because they are often unable to prove their income, and have no tangible security required by the bank.
Tribune Business undersands that studies have shown that if many such Bahamian entrepreneurs persons were given a chance and provided with small loans ($1,000-$5,000), and favourable rates/terms, they would improve their tools and skills, translating into higher income generation.
TSP, aided by the IDB and its affiliates, will be looking at behavioural patterns that can be used in predicting a borrower’s ability to service their debts.
The ultimate goal, Tribune Business understands, is helping Bahamian businesses to obtain credit to improve their business, then graduate them to a credit union or bank when they are ready for expansion.
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