Wezago Trading improved their default and repayment rates with NuovoPay
Introduction
Wezago Trading faced significant challenges in securing devices sold on credit and expanding its market reach. With the adoption of NuovoPay's innovative Device Financing solution, Wezago Trading embarked on a transformative journey that not only improved their default and repayment rates but also empowered a growing number of unbanked customers.
About Wezago Trading
Wezago is a Kenya-based smartphone financing company. It enables potential customers to acquire assets on credit, which they qualify to access depending on their creditworthiness. They have an embedded credit scoring algorithm, that automatically assesses the applicant’s creditworthiness based on their mobile money and/or bank statements provided on the platform. It allows the self on-boarding of the customers, with real-time response on the credit limit, the deposit required and the devices (assets) that they access on credit.
Challenges Faced
Before embracing NuovoPay, Wezago Trading grappled with several challenges that hindered its growth and profitability:
Inability to Secure Devices: Wezago struggled to secure devices sold on credit, leading to a high risk of default among borrowers.
Limited Market Reach: The company was primarily limited to serving internal customers, missing out on a larger untapped market of potential customers.
How NuovoPay Helped Overcome Challenges?
Wezago Trading found that NuovoPay's Device Financing solution addressed their pain points effectively:
Enhanced Device Security: NuovoPay enabled Wezago to secure and lock the devices sold on credit, significantly improving the likelihood of loan repayments.
Market Expansion: By reducing risk through NuovoPay, Wezago was able to expand its market reach and serve a more extensive customer base.
Reducing Default Rate and Increasing Repayment Rate:
With NuovoPay in place, Wezago Trading achieved remarkable results in improving their default and repayment rates.
Major Features
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Remote locking
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Payment notifications
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Automated payment reminders
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Phased locking
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Security restrictions
Transformative Results
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Default rate dropped from 40% to 5%.
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Repayment rate surged from 60% to 95%.
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447 customers empowered with smartphones.
Customer Testimonial
“NuovoPay has allowed us to navigate the journey towards being a successful credit-based ecommerce platform globally. This has been through empowering our unbanked customers with smartphones which they can use to earn a living as they pay off flexible and affordable payment plans.”
Wezago Trading
