Cooperative Bank of Oromia (COOP bank) partners with Kifiya Financial Technologies to launch Michu, Ethiopia’s 1st collateral-free digital lending platform that enables SMEs to access loans with a repayment period of up to one year.
COOP bank is the only cooperative specialized bank that targets rural communities and those engaged in agribusiness and trading. Kifiya Financial Services is one of Ethiopia’s leading private technology companies specializing in Fintech and has over a decade of market experience. Michu is powered by Qena, Kifiya’s AI-driven digital lending solution.
Michu enables small and medium businesses to access loans up to 150,000 Birr without collateral from COOP bank. The Cooperative Bank of Oromia aims to increase its loan portfolio by 30% through Michu & boost its number of clients.
Due to a lack of reliable credit ratings, financial institutions typically place high requirements for lending. With Michu, small and medium businesses have a more straightforward process when applying for loans and receiving decisions through the credit scoring logic.
The loan application process requires eligibility, verification, analysis, scoring, and loan disbursement and takes a few minutes to complete. With Kifiya, COOP bank hopes to expand its digital financial offerings and assist micro and small businesses usually neglected when requesting financial support.
