Voyager Innovation, a tech company wholly owned by the Philippine wireless service provider Smart Communications, is partnering with the Bulgaria-based finance company Cash Credit to provide mobile-based consumer loans to approximately 75 million Smart Communication subscribers [1].
According to Orlando Vea, the CEO of Voyager Innovation, this partnership will “further promote electronic financial access among the underbanked and unbanked segments of the Philippines’ population” [1].
Cash Credit partners with mobile network operators and a telecom retailer in Bulgaria to provide consumer loans in amounts ranging from BGN 200 (USD 114) to BGN 2,000 (USD 1,140). Cash Credit’s scoring model is based on subscriber call and texting usage as well as payment and unspecified behavioral data. Loan proceeds can be disbursed as microloans, utility bill payments or airtime credit [1].
In 2013, Cash Credit received an investment of USD 25 million from Delta Partners, a United Arab Emirates-based advisory and investment firm [2]. Cash Credit currently partners with Mobiltel and Globul, two Bulgarian mobile network operators. As of April 2015, Mobiltel has 4.2 million customers and Globul has approximately 4 million customers.
By Caroline Zhu, Research Associate
About Cash Credit
Cash Credit, a Bulgarian finance company, was founded in 2011. It partners with mobile network operators to provide consumer loans, ranging from BGN 200 (USD 114) to BGN 2,000 (USD 1,140). Cash Credit’s scoring model is based on subscriber call and texting usage as well as payment and unspecified behavioral data. As of April 2015, Cash Credit partners with Mobiltel and Globul, two Bulgarian mobile network operators; and a telecom retailer Germanos Bulgaria.
About Voyager Innovation
Voyager Innovation, established in January 2013, is a wholly owned subsidiary of the Philippine wireless service provider Smart Communications, which in turn is owned by Philippines-based telecommunications company Philippine Long Distance Telephone Company. As of December 31, 2014, PLDT reports total assets of PHP 436 billion (USD 9.76 billion). PLDT provides service to 76.4 million subscribers including 56.6 million Smart wireless customers, as of 2014. Voyager Innovation focuses on providing digital products and solutions to support commerce.
About Smart Communications
Smart Communications Incorporated (Smart) is a wireless service provider in the Philippines that was founded in 1991. Smart provides postpaid and prepaid plans; broadband Internet services; and Smart Money, a mobile phone service that is linked to a debit card to allow for users to pay bills, purchase goods, and transfer funds. Smart is a subsidiary of the publicly traded Philippine Long Distance Telephone Company (PLDT). As of December 31, 2014, PLDT reports total assets of PHP 436 billion (USD 9.76 billion). PLDT provides service to 76.4 million subscribers including 56.6 million Smart wireless customers, as of 2014.
Sources and Additional Resources
[1] Business Wire, “Smart Digital Unit and Cash Credit to Offer Mobile-Based Microfinance in the Philippines,” http://www.businesswire.com/news/home/20150303006306/en/Smart-Digital-Unit-Cash-Credit-Offer-Mobile-Based#.VThMCxPF9ca
[2] Cash Credit Press Release, “Delta Partners Emerging Markets TMT Growth Fund II investing up to US$25 million into Cash Credit to fund international expansion,” http://www.cashcredit.bg/eng?page=show_news&news_ID=13
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