How eShandi Uses AI to Make Financial Services Accessible for Africa’s Underserved Communities

How Zambian Fintech Start-up eShandi Uses AI to Boost Financial Inclusion in Africa

eShandi, a fintech start-up from Zambia, is leveraging AI-powered credit scoring to provide loans to underbanked individuals and small and medium-sized enterprises (SMEs) across Africa. Established in 2019 as PremierCredit, the company has grown into a pan-African challenger financial service that bypasses traditional documentation requirements used by conventional banks.

Chilufya Mutale-Mwila, co-founder and chief visionary officer, highlights the company's mission: "eShandi's goal is to build an inclusive financial system that serves all Africans. We focus on bringing financial services to underserved groups, particularly women and SMEs, who have often been excluded from traditional banking."

Addressing Creditworthiness Without Traditional Documentation

Traditional banks often struggle to assess creditworthiness for these groups due to the lack of formal documentation like pay slips or credit histories. eShandi's AI-driven platform changes this by enabling fast and accurate loan assessments without the need for such paperwork.

By using alternative data sources combined with machine learning, eShandi develops detailed risk profiles. These data sources include mobile money transaction histories, smartphone usage, and transaction behavior on eShandi's own platform. This method unlocks financial access for potentially hundreds of millions of people across the continent.

Integrating Financial Literacy Into the Platform

Beyond technology, eShandi incorporates financial education tools within its platform. This helps users understand their financial options and make informed decisions. Mutale-Mwila notes, "Embedding financial education ensures our customers are empowered, which differentiates us from other fintech companies."

Why This Matters for Finance Professionals

• eShandi's approach offers a practical example of how AI can improve credit access for underserved markets.
• It demonstrates how alternative data can replace traditional credit checks, reducing barriers to lending.
• The integration of financial literacy tools supports sustainable financial behavior, increasing loan repayment rates.

For finance professionals interested in AI applications in credit risk and financial inclusion, eShandi’s model offers valuable insights into scalable solutions in emerging markets.

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