Bookkeeper uses alternative data to improve credit scoring for sustainable women-owned businesses
Eth Global Showcase: https://ethglobal.com/showcase/bookkeeper-bb37w
Women-owned Small and Medium Enterprises (WSMEs) in Africa are disproportionately affected by financial exclusion due to a variety of factors, including cultural and societal barriers, lack of collateral and credit history, and limited access to financial institutions. This is particularly true for women-owned businesses, which are twice as likely as men-owned businesses to be financially excluded.
Bookkeeper is a product that uses alternative data to support credit scoring for WSMEs. By analyzing alternative data sources, including, transactions, and other payment info, sales, stock data, Bookkeeper can provide a more comprehensive and nuanced view of a WSME's creditworthiness. By leveraging AI and analytics, it can also improve the accuracy and efficiency of credit scoring and reduce biases in lending decisions, helping banks and financial institutions make informed and gender-conscious lending decisions.
In addition to its primary goal of supporting credit scoring for WSMEs, Bookkeeper can also contribute to the goal of promoting sustainable finance and mitigating the impact of climate change by helping banks and financial institutions make informed and equitable lending decisions for WSMEs engaged in sustainable practices.
Financial exclusion refers to the inability of individuals or businesses to access financial products and services such as credit, loans, and savings accounts. In Africa, women-owned small and medium-sized enterprises (WSMEs) are disproportionately affected by financial exclusion due to a variety of factors, including cultural and societal barriers, lack of collateral and credit history, and limited access to financial institutions.
According to a report by the International Finance Corporation (IFC), only about one-third of WSMEs in Africa have access to formal financial services. This leaves a significant portion of WSMEs unable to access the credit and other financial products they need to grow and succeed.
In addition to the overall low levels of financial inclusion for WSMEs in Africa, there are also gender-based disparities in access to financial services. A report by the African Development Bank found that women-owned businesses in Africa are twice as likely as men-owned businesses to be financially excluded. This is due in part to the fact that women are less likely to have collateral or credit history, and are more likely to face discrimination and other barriers when trying to access financial services.
Name: Sarah Muani Age: 40 Occupation: Owner of a women-owned small business that sells eco-friendly products Location: Kigali, Rwanda Education: High School Income: $200 - $500 per year Family: Married with two children Goals: To grow her business and increase profitability, to provide a sustainable future for her family Challenges: Difficulty accessing loans from traditional banks due to lack of credit history, need for working capital to expand the business
Sarah is a driven and motivated business owner who is passionate about sustainability and making a positive impact on the environment. She has been running her business for several years and has built a strong customer base, but struggles to access financing from traditional banks due to her limited credit history. Bookkeeper offers a solution that takes into account alternative data sources, like her sales and stock data, to help her secure financing and grow her business. She is eager to work with Bookkeeper to achieve her goals and provide a better future for her family.
Facilitating credit scoring for women-owned small and medium-sized enterprises (WSMEs) through Bookkeeper can have a positive impact on climate change by enabling these businesses to access green finance that can be used to invest in sustainable technologies and practices. According to a report from UNDP, SMEs represent about 90% of businesses and more than 50% of employment worldwide and are responsible for up to 70% of energy consumption and greenhouse gas emissions in many countries. By helping WSMEs to access credit, Bookkeeper may enable these businesses to invest in renewable-energy technologies or in energy efficiency measures, such as upgrading to more efficient lighting or heating systems. This can help to reduce greenhouse gas emissions and contribute to the transition to a low-carbon economy. By enabling WSMEs to access finance that can be used in these ways, Bookkeeper will be able to make a significant contribution to climate change mitigation efforts.
Facilitating credit scoring for women-owned small and medium-sized enterprises (WSMEs) through Bookkeeper can have a positive impact on gender equality by providing more equitable access to financial resources and enabling WSMEs to grow. According to a report from the IFC, "Women’s entrepreneurship and access to finance are key drivers of economic development and social inclusion. The potential for women’s entrepreneurship to drive economic growth and reduce poverty is significant, yet women face barriers to access to finance that men do not." By helping WSMEs to access credit, Bookkeeper may be able to overcome some of these barriers and enable WSMEs to thrive. Supporting women-owned businesses has been shown to have a range of positive impacts on communities and economies. For example, a report from the Global Entrepreneurship Monitor (GEM) found that "women’s entrepreneurship can have a multiplier effect on economic growth, leading to higher productivity, as well as increased income and education outcomes for families." By enabling WSMEs to access credit, Bookkeeper may be able to contribute to these positive outcomes and promote gender equality.
Android JAVA - We developed the mobile app using Android JAVA, - Files are in the /app folder
Firebase Firestore - We used Firebase Firestore as Backend to store Business Details and support User Authentication
Firebase Functions - We integrated Firebase Functions (Javascript) to facilitate interactions between Mobile App and Blockchain ( Solidity Code) - Files are in the /functions folder.
We have these functions
- CreateSale - Publish Sale Records on the FEVM
- CreateStock - Publish Stock Records on the FEVM
- fetchSales - Fetches Sales Records from the FEVM
- fetchStock - Fetched Stock Records from the FEVM
- fetchCreditScore - Calculates Credit Score based on Sales and Stock data
Blockchain - Hyperspace FEVM Testnet
UI Usability Improvements to support Non-Technical User Onboarding like Sarah Muani
Integrate Android Room Library to support local data persistence.
Integration with Biconomy SDK to support Smart Account (where the developer pays for transactions), relieving the user the need to have FEVM Tokens for them to publish business Records
Security - Shift towards Self-Custodial wallet to promote wallet data privacy
AI & Data Analytics Integration
Incorporation of more data sources to support comprehensive credit scoring
More App features to support WMSEs