Migo Money partners Claro Pay to boost financial inclusion

Migo Money, a leading embedded credit platform, has recently announced a groundbreaking partnership with Claro Pay, a prominent telco company, aimed at enhancing financial inclusion for the unbanked population. In a recent interview with CNBC Africa, Winston Ossuchuku, the Senior Vice President of Migo Money, shed light on the motivations behind the collaboration and the transformative impact it aims to bring to the financial landscape in emerging markets. Ossuchuku explained that Migo's platform plays a pivotal role in bridging the gap between financial institutions and underserved consumers. By leveraging wireless infrastructure provided by companies like Claro and tapping into the resources of traditional banks, Migo has positioned itself as a key player in democratizing access to credit for micro, small, and medium-sized enterprises (MSMEs) in regions like Nigeria. These businesses account for over 90% of transactions in emerging markets but often struggle to secure financing due to limited credit history and inadequate infrastructure. The core focus of Migo's initiative is to empower MSMEs with a credit-as-a-service platform that enables seamless access to capital at the point of transaction. By streamlining the Know Your Customer (KYC) process and facilitating efficient loan management for banks, Migo is able to cater to a wide range of borrowers, from those seeking small loans of a few dollars to larger sums in a matter of seconds. This rapid turnaround time sets Migo apart from traditional banking institutions and underscores its commitment to driving financial inclusion for the 'last mile' of consumers. Ossuchuku emphasized that Migo's risk-based pricing model accounts for the inherent volatility in earnings often associated with underserved populations. By utilizing alternative data sources and implementing tailored financial services, Migo aims to mitigate risk and ensure sustainable repayment behavior among borrowers. While Migo's interest rates may be slightly higher than those of traditional banks, the willingness of consumers to repay reflects the value and necessity of the credit solutions provided by the platform. Following its successful expansion in Nigeria, Migo is now poised to replicate its model in Brazil, a strategic move driven by the country's robust economy and significant market potential. Brazil's affinity with Nigeria, coupled with the strong partnership with Claro, positions Migo for further growth and impact in Latin America. The collaboration with Claro, a leading telco company with over 90 million subscribers, underscores Migo's commitment to leveraging strategic alliances to scale its operations and reach new markets. In conclusion, Migo Money's partnership with Claro Pay represents a significant milestone in the journey towards financial inclusion in emerging markets. By harnessing the power of technology, data analytics, and collaboration with key industry players, Migo is paving the way for a more inclusive and accessible financial ecosystem for underserved entrepreneurs and individuals. As the company continues to innovate and expand its footprint, the potential for transformative change in the realm of financial services remains vast and promising.