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An Alternate Credit Assessment Solution for Emerging Markets

An Alternate Credit Assessment Solution for Emerging Markets

Canada, Toronto
Market: Financial services
Stage of the project: Operating business

Date of last change: 01.11.2020
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Idea

Periculum provides companies and institutions across Africa with a machine learning, alternate credit assessment solution.

Our machine learning model had an 80% default prediction accuracy, better than FICO, Equifax, and Trans Union.

Current Status

Accepted to the Canadian Lenders Association's Approved Vendors List; best in class vendor for Canadian lenders.

Started pilot process with MenaCred, Youverify and
CreditClan.

Received Letter of intent from Youverify.

Received Letter of intent from MenaCred.

Market

Market Size:
Current TAM (Global Market) for our industry is $210 Billion.
Current SAM (Emerging Market) $16 Billion.

Go to Market Strategy:
Stage 1: Micro finance and alternate lenders in Nigeria and Kenya

Reasons:
High default rates.
They use unreliable telco data for credit scoring.
No standardized credit rating system: Each company uses different metrics, which is frustrating for their customers.

Stage 2: East and West African Countries

Stage 3: Africa

Stage 4: Rest of the developing world

Problem or Opportunity

Due to Covid-19 and other factors, the default rates of borrowers in the African market are at an all-time high.

- Spire Bank in Kenya reported a 90.65% borrower default of its loan book as of September 2020.
- Moody’s has projected a higher loan default rate of 14 percent for Kenya alone.
- Nigerian Fintech lenders are dealing with increasing loan defaults due to job loss and an economic downturn.

This trend is happening to banks and digital lenders across Africa. Still, SME’s and individual borrowers need loans to carry out their daily personal and business activities.

Solution (product or service)

Periculum provides companies and institutions across Africa with a machine learning, alternate credit assessment solution.
Our machine learning model had an 80% default prediction accuracy, better than FICO, Equifax, and Trans Union.

The dataset used to train our model consists of more than 65,000 records of bankrupt and non-bankrupt datasets from 1980 to 2019.

Our model is backed by academia and was built with the assistance of Dr. Yoontae Jeon, a Professor of Finance at the Ted Rogers School of Management at Ryerson University.

From all this, we built a dynamic machine learning model that uses twenty-two predetermined data points of SME's and consumers to produce credit scores and reports.

Competitors

EQUIFAX/ EXPERIAN/ TRANSUNION

TELCO-POWERED CREDIT
ASSESSMENT SYSTEMS

Advantages or differentiators

1. Periculum provides credits scores, reports, and default prediction, which has an 80% accuracy, far better than FICO, EQUIFAX, and TransUnion.

2. Periculum aggregates complete datasets from all data sources, which forms the basis of the credit scoring.

3. Periculum is completely trainable and scalable because we use machine learning, neural networks, and deep learning to build our models; it's easily deployable in any market in any region.

Finance

Here is our pricing.
Starter:
$ 50 CAD/ Month
100 API Calls
5 Users/ Company


Standard:
$175 CAD/ Month
500 API Calls
20 Users/ Company


Premium:
$350 CAD/ Month
Unlimited API Calls
Unlimited Users/ company

Business model

We earn revenue on both sides of the typical ecosystem:

(A) From the businesses when they evaluate their customers or vendors:
Each time they use Periculum, - or -
A monthly subscription fee.

(B) From a bank or digital lender that chooses to use Periculum to grant banking services :
A monthly subscription fee.

Money will be spent on

We are looking for 24 months of funding to provide credit services to one million credit consumers and SME's in Nigeria and Kenya.

Offer for investor

Subject to Negotiation.

Team or Management

Risks

Telco data powered credit assessment providers changing their business model to ours.

Incubation/Acceleration programs accomplishment

Participation at the Accelerator Centre
Part of Futurpreneur Canada program.

Product Video

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video