Zowasel Receives $400,000 from VBank to Boost Trade Finance

Zowasel has deployed N300 million received from VFD Microfinance Bank (VBank) to launch a trade finance initiative through its Alternative Credit Evaluation Scoring System (ACESS), just two months after it secured $100,000 from the bank for smallholder farmer credit financing.

The additional funding targets customers transacting on the Marketplace to unlock trade finance and increase transactions on the platform. The ACESS system, which combines AI and human input, utilizes a dynamic variable approach to assign scores and grades to potential borrowers based on weighted attributes calculated from their data.

According to Zowasel CEO, Jerry OCHE, ACESS employs transaction performance, market insights, price forecasts, crop value, and potential buyers to formulate loan recommendations. This algorithm plays a crucial role in the credit risk management.

The partnership with VBank will enhance banking efficiency in three key ways. First, it eliminates the need for costly on-the-ground recruitment by acquiring agribusiness customers. Second, it involves alternative risk assessment and data-driven loan product development, which reduces the risk of default. Third, Zowasel’s scalable model reduces operational costs, encompassing stationery, travel, overheads, and other associated expenses.

Furthermore, by offering decision-making tools and bundling exclusive credit linked to transactions on the Zowasel platform, financial institutions can create loan products with high repayment rates and reduced exposure to unforeseen environmental circumstances. Lending decisions are based on track records, thereby increasing bankability, access to finance, and financial inclusion. Banks are consequently more effective and efficient in resource management and risk mitigation in agricultural lending, enabled by quick lending decisions with low risk based on customer data at a glance.

Gbenga Omolokun, Managing Director of VFD Microfinance Bank, expressed excitement about joining forces with Zowasel to change the agribusiness financing landscape.

Existing customers can now access $10,000 to $65,000 for post-harvest working capital, ensuring speedy transactions and direct deposits into their VBank accounts within 48 hours.

For more details, visit www.zowasel.com or reach us at marketplace@zowasel.com.