NAIROBI, Kenya, Feb 2 – Kenyan lenders could soon access a new pool of creditworthy borrowers following the launch of a remittance-based credit assessment tool by Singapore fintech firm Wapi Pay PTE Ltd, as traditional lending models continue to grapple with high default rates.
Wapi Pay, which is licensed by the Central Bank of Kenya (CBK) as an international money transfer and foreign exchange operator, has rolled out the Remittance Credit Scorecard (RCS). The tool allows lenders to factor regular diaspora remittance inflows into loan approval decisions.
The launch comes at a time when credit risk remains elevated across the banking and digital lending sectors.
Recent CBK and industry data show that loan defaults are particularly high in small-ticket and digital loans, with surveys indicating that about one in six borrowers have defaulted in recent years. This has pushed lenders to tighten credit standards, limiting access to loans.
The new scorecard seeks to address this gap by assessing borrowers who consistently receive money from abroad but are often excluded from formal credit because remittances are not treated as regular income.
Using artificial intelligence and machine learning, the RCS analyses international transfer patterns to generate insights into a borrower’s financial behaviour and repayment capacity.
“For too long, the regularity of remittance inflows has been ignored by traditional credit algorithms,” said Eddie Ndichu, co-founder of Wapi Pay.
“By launching this scorecard, we are giving Kenyan lenders the data rails to safely extend credit to millions of families supported by the diaspora,” he said, adding that the goal is to promote wealth creation beyond money transfers.
For lenders, the tool opens access to a fast-growing and relatively stable segment of the economy, offering a potential way to reduce defaults while expanding lending in a challenging credit environment.
