Card Pesa
Card Pesa
Card Pesa is proud to launch our android app which works like the sms platform

Download the app at the link below and use the credentials that you use for sms/ussd login to use the app.

If you have not signed up first sign up and subscribe to get login credentials
Card Pesa
Card Pesa
A question of Trust.

One of the questions we get asked on the platform when assigning credit limits is why dont we provide higher credit limits based on how much a persons statements and possibly income per month show.

Or why dont we provide the same level of credit that other lenders have already lent to the user as shown in their credit report.

Our simple answer is every lender has different benchmarks and basis for providing credit and ours may not use the same parameters that others use for our wish is to provide a service that meets the needs of the ordinary person in a way that may not have been tried before.

Our contention is that just because someone earns a lot of money does not necessarily mean they are credible and will payback large credit amounts if advanced to them for the first transactions.

A key component to the systems ability to survive and flourish is its ability to assess risk and have no one transaction that if it went bad would be catastrophic to the platform and close the fund.

Therefore yes you may earn a large sum of money but our platform will provide you credit in line with what it deems the average current user with a similar set of circumstances to yours is taking from the platform and is not defaulting on or finding difficulty paying.

As you transact on the platform it will learn your habits and provide more or less credit based on your transactions on it as well as those of people it associates with you.

In simple speak we are trying to build a platform which is designed to learn how to trust a user. Trust is Built with Time so we need the platform to learn your temprament and use the information provided and learned to set appropriate credit limits.

So yes many may feel that they deserve more credit than the limit that is initially set but for now we will let the platform draw on all the data it gathers and statistical models it utilises to determine what levels of credit to provide which as they say "Will not break the Bank".
Card Pesa
Card Pesa
Today Discount Cards Limited signed a Memorundum of Understanding with Metropol CRB Uganda.

By signing this agreement, Discount Cards trading as Card Pesa will have more data points from which to determine the credibility of a client enrolled on our platform.

A client enrolling or using the Card Pesa service can now give the system instructions and authorisation to have their credit report sent to us to help us further guage how credible they are so as to provide comfort to us when determining what credit limits to set for them on our platform.

With this as an additional step in triangulating data/information provided on the platform we believe that the system will be more robust and will be able to weed out or detect clients who may not have the temprament to meet obligations as they fall due and reward those who can demonstrate that they are credible which in effect reduces risk on the platform and thus translates into better terms for all users on the system.

We therefore believe that this partnership is a major milestone for us in our quest to demonstrate that access to credit in this country need not necessarily hindge on a persons possession of collateral and by so doing open up the market for credit to the many youth who do not have any assets in their possession that can be used as collateral yet they wish to participate in enterprise.

Please note that the above not withstanding, our platform will still be able to serve clients who may not be registered with the credit bureau as we are cognisant that many may not have bank accounts.
Card Pesa
Card Pesa
Strategic depth and what it has to do with finance

Strategic depth is a term in military literature that broadly refers to the distances between the front lines or battle sectors and the combatants' industrial core areas, capital cities, heartlands, and other key centers of population or military production

The idea behind strategic depth is that military commanders should have plans or strategies to be able to defend their core areas and regroup if under attack by the enemy and battle-lines/frontlines have been broken before their core areas are overrun.

We would like to use the same analogy in finance albeit with a twist.

Strategic Depth in our case should be looked at as the time frame between asking for a loan/advance and getting it.

In the fast paced world we live in at the moment it sometimes comes down to how quickly you can reinforce your coffers/resouces in order for you to continue doing business or take advantage of a business opportunity.

As a digital micro lender where we provide strategic depth is that once you are signed up and a credit limit is set it is a matter of seconds between the time you autonomously request for the advance and the time you get it.

Whilst many of our competitors will provide loans at lower rates and at what some may consider better terms little or no mention is made as to what the timeframe within which the loan/advance is requested and when it will be received after valuations, signed legal documents, offer letters, and perfection of securities.

A seasoned banker recently revealed that on average the best financial instutions will take a minimum of a month but most will take between 2 to 3 months to process a facility

At Card Pesa we are cognisant of the environment we are in and the fact that the need for credit is more often than not more urgent than the processing time most other competitors would take to release funds.

We therefore encourage as many people as possible to sign up and have your credit limits set so that at whatever point you may need the advance it gets to you in seconds.
Card Pesa
Card Pesa
The Gender Divide in Business.

As we build our platform we learn and get a unique insight on the behavioural deferences between men and women with regards to our products and services.

A few of the insightful discoveries are as follows.

In promotion on social media.

We found that more women respond to instagram promotions than facebook promotions. Where the ratio of women to men responding on facebook was 1:5 on instagram it was 3:2 respectively.

Also on social media we have found that the age group that responds most to campaigns is between 18 and 34 years for both men and women. Above 35 responses are next to naught.

Performance on the platform.

We are finding currently that women to men signed up on the platform are in the ratio of 1:3. With most women tending to use the credit advanced if at all for one-off events or shortfalls with a very low level of deliquency as compared to the same ratio of men.

Currently the data tells us that the average card carrying member of the Phoenix will be a 25 to 34 year old man.

We however noted that the clients who use the the service most and take advantage of all its benefits with the highest credit scores and credit limits are men and women between 35 and 45 years although the ratio of this segment on the platform is still a 1:3 ratio of women to men using the platform.

As indicated earlier. Card Pesa is a data company and we use the insights on usage of the platform to customise the products and help our clients build their lives through providing working capital and emergency loans to them when they need them most in the most convenient way.

Based on the data above we will be launching a new card and service known as The Unicorn.
It will be targeted to the group of clients aged above 34 years which will be more of a premium service which will provide higher credit limits and lower interest rates however with a yearly subsciption that will be commensurate to the additional benefits of being at this level for the clients.
Card Pesa
Card Pesa
Capacity to Pay

We have run our new platform now for 157 Days and have carried out 402 successful transactions

As we prepare to scale and hit a target by the end of year of over 1000 successful transactions we learn and adopt our platform to meet the needs of those clients on it.

So what are we seeing so far.

The issue of disposable income.
To be able to meet loan obligations on the platform you have to have earnings which are not committed to pay for other obligations that would rank higher than our debt obligation in your scale of needs.

We believe that for this credit to be affordable the credit limits set should be equivalent to the average transactional spend of a client over a month. It is not our intention to put our clients into a debt trap.

We have therefore adjusted the platform to request for 3 months bank statements and/or 3 months mobile money statements from our clients if they feel that the limit set for them is lower than the amount they comfortably spend on ordinary transactions.

Research from Kenya on platforms that use similar methods of advancing credit to ours tells us that the average advance size is 4000 kshs which is approximately 130,000 Ushs.

Transactional history on our platform tells us that on average most clients who are advanced more than 300,000 ushs per month will find difficulty repaying that obligation in one transaction.

We are therefore interested in determining if the reason is the cost, affordability, nature of clients, economic environment or other factors that makes this current observation so.

That said we are seeing an over 20% growth in usage of the platform month on month and we are engaging and preparing the platform to further automate a few key functions as we prepare to launch more features that will be able to reward customers who have clean records on the platform that have demonstrated ability and willingness to pay with higher credit limits, lower interest rates and direct commissions for referrals of new members onto the platform.

We are also going to run promotions like the Christmas Comes Early Campaign which are set to test the platforms readiness to accept and support merchant transactions that provide benefit to our clients which are over and above the credit advanced.

We have also applied to our regulator for a Tier 4 Non Deposit Taking Micro Finance License which we hope we will be able to get by the years end. Our view is that the scale and scope of operation dictates that we move to the next tier of regulation to better reflect our activities.

We believe that these kinds of updates should be given from time to time to help inform all stakeholders involved in promoting the kind of inclusive financial activity that we are engaged in and should also be a way in which we provide feedback to our clients on what is in development and why.
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