Movii, Yabx Give Loans to Procter & Gamble Retailers

By Adedapo Adesanya

In a spirit of partnerships, Movii, a leading mobile wallet challenger bank in Colombia, and Yabx, a leading technology company in contactless lending, have collaborated with Procter & Gamble Retailers to provide credit services in Colombia.

According to research, Colombian MSMEs face a financing gap of $56 billion and this lack of credit access leaves most of these businesses outside the financial institutional framework.

It was because of this problem both parties agreed to join forces to bridge this credit reach gap and bring expertise to these developing markets.

The partnership with Procter & Gamble, a global consumer goods company, is being launched in the South American country, where its wide range of product lines include Personal Care & Hygiene, Food and Beverages among others are in high demand considering the current COVID-19 pandemic.

This contactless service was also introduced considering the pandemic situation in the country and will help businesses with pre-approved credit facilities to purchase their retail stock and cater to the needs of general population amid lock down

With this, businesses can use this credit service to facilitate their business operations and for P&G merchants in Colombia, they can pay for their stock orders using digital credit from their Movii wallet.

These merchants credit limit will be derived using Yabx’s state-of-the-art credit decision analytics engine using advanced machine learning tools. The entire credit journey from onboarding of merchant, credit disbursal and collections would be enabled using Yabx digital lending platform.

Speaking at the launch, Mr Rajat Dayal, Founder andChief Executive Officer of Yabx said – “Usually these merchants rely heavily on cash to purchase their stock. This comes with a lot of problems such as – lack of sufficient cash availability to optimize sales, security risks and inconvenience of handling cash, lack of liquidity management, continuous alienation from credit ecosystem.”

“These problems become even bigger and riskier at the time when the world is facing dreaded COVID-19 pandemic.

“Yabx aims to help these merchants to access easy and affordable credit and enable them to plan, manage and grow their business more efficiently.

“Additionally, merchant network owners like P&G, who have a large merchant base in Colombia, can benefit from this program by enhancing their sales volumes, reduction in cash leakage, better planning and stocking as well as improved transparency in the supply chain.

“In Latin America, which is a special focus region for us, merchant financing is one of the key product to ensure effective management of COVID-19,” he added.

The Chief Executive Officer and Founder of Movii, Mr Hernando Rubio said, “This move at the time of COVID-19 crisis is an important step towards our efforts to bring digital financial services to the under-banked population in Colombia of which MSMEs constitute a significant portion.

“We are planning to roll out this loans program to our larger merchant network and continue working on building partnerships with more CPG networks.

“In addition to this, soon we will be launching more credit use-cases for merchants including cash advances, POS loans.”