4G Capital develops tool that identifies borrowers' financial stress - Capital Business
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Wayne Hennessy-Barrett, CEO and Founder of 4G Capital

Kenya

4G Capital develops tool that identifies borrowers’ financial stress

NAIROBI, Kenya, Dec 1 – Financial technology credit provider, 4G Capital Group Limited, has developed a new tool that identifies financial stress and helps protect low-income consumers against over-indebtedness.

The firm in partnership with the Consultative Group to Assist the Poor (CGAP) and consultancy firm, performance Solutions (“SPS”), co-created a pilot client financial stress Early Warning System (‘EWS’) which enables an early assessment of and response to borrowers experiencing financial stress to help reduce the risk of over-indebtedness.

By sensing mild changes in financial well-being, the EWS gives lenders the opportunity to intervene and improve lending decisions and risk management.

Wayne Hennessy-Barrett, CEO and Founder of 4G Capital said the financial stress early earning system trial is a ground-breaking exercise in data-led client protection.

“Partnering with CGAP and SPS has harnessed industry-wide experience to build an agile, algorithmic solution to protect vulnerable clients during challenging times and improve wider market conduct as we share our findings with the wider fintech community in Kenya and beyond,” Barrett said.

Juan Carlos Izaguirre, team leader at CGAP said the EWS is aimed at making it possible to estimate financial stress before borrowers, lenders, and the overall financial sector is harmed.

“This pilot is part of CGAP’s broader efforts to foster the use of market monitoring tools to identify, assess, and track digital financial consumer risks and outcomes,” he said.

 

 

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