MIT Solve

Solution Overview

Solution Name:

Cashtree

One-line solution summary:

2-Cashtree has developed an Android loan application with its own credit scoring model to make instant loans between $10 and $ 100

Pitch your solution.

13 million adults Cameroonian do not have access to financial services and they need loans right now to grow economically and to improve their living conditions.

For many years, banks and other traditional financial institutions have failed to provide financial services to the 13 million people living in urban and rural communities.

Without a way to prove their financial potential and their credit history, 13 million adults are formally excluded from the banking system.

How can we help change this?

We have successfully developed the first digital loan app called Cashtree which not only handles the entire loan process in one minute but can also disburse funds in less than five minutes.

With the help of artificial intelligence and machine learning algorithm, we have created an end-to-end lending process that is simple, fast, reliable, and transparent so that anyone can access financial services via google play store anytime and anywhere.

What specific problem are you solving?

Imagine having the ability to process a loan in 1 minute with no collateral, no guarantees, and no paperwork!

We have successfully developed a digital lending application that not only generates an entire loan within the 2 minute time frame but that can also facilitate disbursement to a customer in less than 5 minutes.

With the help of artificial intelligence and advanced analytics, we have created an end-to-end loan process that is simple, safe, fast, and transparent!

According to the World Bank, almost 1.7 billion people throughout the world do not have a bank account.

In Cameroon 10% of the population have access to banking services, 39% have access to other formal non-banking services, 15% use informal non-banking services and 36% are excluded of both services

One pathway to financial inclusion is through CashTree. And we are positioned to be the first digital platform in this effort in Cameroon. The flexibility of our terms; the ease of use; and the transparency of our practices make CashTree a viable way to increase banking access while contributing to the creation of wealth, the improvement of living conditions, the development of the private business sector, stronger communities and drive economic growth.

Who does your solution serve, and in what ways will the solution impact their lives?

Cashtree targets 51% of the adult population of a rural and urban area in Cameroon , which represents about 13 million adults who have been excluded from the traditional banking system. This include

These include

Micro-entrepreneurs
Small farmers and traders
Public transport cab drivers
motorcycle taxi
low income employee
Buyam&Sellam

Which dimension of the Challenge does your solution most closely address?

How can countries ensure that digital authentication mechanisms—which often require smartphones, computers and internet access—are accessible to marginalized and vulnerable populations to facilitate remote access to services and benefits?

Explain how the problem, your solution, and your solution’s target population relate to the Mission Billion Challenge Global Prize and your selected dimension.

With the spread of the pandemic worldwide, governments, institutions and businesses are migrating to digital technology. We have seen new ways to connect; mainly via video chat such as Zoom technology and telehealth. Grocery stores have moved to online ordering. Schools in many countries have moved 100% online learning. Cashtree follows the same logic by providing 100% digital services which aligns 100% with the Mission Billion challenge. The Cashtree application is user-friendly, simple and can be easily access by anyone with smart phone. Our mission is to promote financial inclusion and improve better living conditions of marginalized and vulnerable people

Where is your solution team headquartered?

Houston, TX, USA

What is your solution’s stage of development?

Prototype: An individual or organization building and testing a product, service, or model.

Who is the primary delegate for your solution?

Romain Voufo,

More About Your Solution

If your solution has a website, provide a link here:

https://www.cashtree.cm

If your solution proposes an app that is currently live, provide a link to your app online or in an app store here:

will be available on September 30, 2020

If you have additional video content that explains your solution, provide a YouTube or Vimeo link here:

Which of the following categories best describes your solution?

A new technology

Describe what makes your solution innovative.

Cashtree has a unique and innovative approach that will distinguish us from other local financial structures such as microfinance companies and potential competitors. Cashtree platform has the following key capabilities that all the lenders in Cameroon does not have:

It has a Credit Scoring Engine powered by Artificial Intelligence that assesses the creditworthiness of loan applicants based on the data available on their mobile phones.
In-built fraud mitigation algorithm that cuts out identity theft and data integrity
The platform provides detailed performance analytics for the businesses, that aid Continuous risk management including impairments and stress testing.
The platform collects large data sets from the users. These data sets give a 360-degree view of the customer from their spending habits, number of loans taken from other lenders.
The platform can score thin file clients who have never taken a loan before

Cashtree platform can identify traits associated with good and bad borrowers and base on the customer phone numbers and the geographic area, we can determine the borrower credit worthiness.

Regarding competition, there is not yet a single digital loan company in Cameroon but we believe that as soon as our activity is launched, our economic model could disrupt the traditional Cameroonian financial system and attract potential investors to the market. But we are not afraid of competition, on the contrary, we are very well equipped to face any competitor from anywhere.

Provide evidence that your solution works.

The technology we will be using is a new application of an existing technology that has been widely used in India in the microfinance. To use Cashtree application, all you have to do is:
1. Download the Cashtree app
Use your Android phone to download Cashtree from the Google Play store.
2. Create your account
Fill out a simple form in under 5 min and submit for a quick review.
3. Apply for the loan that meets your needs
Loans are conveniently sent to your mobile money in minutes
4. Receive the loan into your account
Repay with your mobile account. Build your credit to unlock larger loan

Our Business model

CashTree generates revenue by charging between 0.5 to 1% interest per day on each loan. Loan made by CashTtree mature in 15 to 30 days. In addition to each loan, we charge the processing fee which vary from 50c pour the minimum loan of $10 FCFA to $6 for the maximum $100. We also charge late and penalty fees for 1% per day.

Please select the technologies currently used in your solution:

Artificial Intelligence / Machine Learning

What is your theory of change?

About 13 million adults in Cameroon do not have access to financial services and they need loan right now to grow economically and to improve their living condition. One pathway to financial inclusion is through CashTree. And we are positioned to be among the first digital platform in this effort in Cameroon. The flexibility of our terms; the ease of use; and the transparency of our practices will make CashTree a viable way to increase banking access to honest citizens and workers while contributing to the creation of wealth, the improvement of living conditions, and the development of the private business sector and lastly, build stronger communities and drive economic growth. That's the change cashtree will bring to the population of Cameroon.

How can your solution be incorporated into identification systems?

Our solution will open up opportunities such as access to credit, improved living conditions, and wealth creation for the most vulnerable and marginalized groups through inclusive and trusted digital ID. To access our platform we request a national identity card because without it, it will be impossible to have cashtree loan, so we will encourage and help vulnerable and marginalized populations to obtain a national card because the lack of identification creates barriers to access credit

Describe how 'user friendly' your solution is to incorporate into a digital identification system.

Cashtree solution is user friendly , anyone whose smart phone can access easily our application. To access our application , you should:

1. Download the Cashtree app

Use your Android phone to download Cashtree from the Google Play store.

2. Create your account

Fill out a simple form in under 5 min and submit for a quick review.

3. Apply for the loan that meets your needs

Loans are conveniently sent to your mobile money in minutes

4. Receive the loan into your account

Repay with your mobile account. Build your credit to unlock larger loan

Explain how your solution is interoperable with existing technologies and open standards.

The Cashtree platform is available through API integration which allows our customers to pay back loan and receive money and also facilitates risk management.

How does your solution account for low connectivity environments and for users with low literacy and numeracy levels?

The Cashtree application is bilingual. Customers after logging into the cashtree app will have a choice of language between French or English with help instructions at the bottom of each page. It will help people with low literacy to navigate our app. Regarding poor connectivity, the government of Cameroon is doing more to extend 4G internet access to the entire region of Cameroon.

Select the key characteristics of your target population.

Women & Girls
Pregnant Women
LGBTQ+
Informal Sector Workers
Rural Settings
Urban
Poor
Low-Income
Persons with Disabilities

In which countries will you be operating within the next year?

Cameroon

How many people does your solution currently serve? How many will it serve in one year? In five years?

There is no current number because we have not yet started operations but we expect 1 million in the next years and 4 to 5 million in the next 5 years

What are your goals within the next year and within the next five years?

Cashtree's goals are to expand on permanent basis access to credit to 51% adults excluded from financial services by rending the loan process simple, easy, fast, transparent, and with no hassle so that everyone can easily access credit. By doing so, we will close the 51% gap between people excluded from financial services and those who have access to financial services by 2025. We will contribute that way to the creation of wealth, the improvement of living conditions of populations, and the development of the private sector.

What barriers currently exist for you to accomplish your goals in the next year and in the next five years?

There are two barriers that can slow down Cashtree's progress.
the first one is the lack of funding it means Cashtree does not get funding that allows us to provide loans to customers
The second obstacle is culture. The population is not receptive to innovation because this is their first time getting a loan online. They may be afraid that it can be a scam.

How do you plan to overcome these barriers?

To overcome the two Barriers , we should produce an explanatory video on social media to give them why they should get the loan from Cashtree? and provide them with good reasons to apply for a loan from cashtree. Regarding funding, we will partner with a financial institutions and encourage people to invest in cashtree

About Your Team

Your Business Model & Funding

What is your business model?

Currently, about 13 million adults in Cameroon do not have access to financial services and they need loan right now to grow economically and to improve their living condition.

These include:

Low-income employees
Micro-entrepreneurs,
Small farmers and Traders
Public transport drivers
Moto taxi driver
Buyam & sellam

CashTree will offer loan to the 13 million Cameroonian and will generate revenue by charging interest between 0.5 % and 1 % per day on each loan. The loan made by CashTtree mature in 15 to 30 days. In addition to each loan, we charge the processing fee, which varies from 250 FCFA (25c) pour the minimum loan of 5000 FCFA ($10) to 3500 FCFA ($7) for the maximum 50000 FCFA ($100). We also charge late and penalty fees for 1% per day.

Do you primarily provide products or services directly to individuals, or to other organizations?

Individual consumers or stakeholders (B2C)

What is your path to financial sustainability?

Cashtree will partner with some financial institutions to make loans as well, we will raise funds through crowdfunding and select visionary angel investors who recognize the importance of our business and the long term value it will bring to all parties. stakeholders.

If you have raised funds for your solution or are generating revenue, please provide details.

No funds have been raised yet

If you seek to raise funds for your solution, please provide details.

Cashtree will be seeking between $250000 and 2 millions dollars after the pilot phase in December 2020

What are your estimated expenses for 2020?

Castree estmated expenses for 2020 is $30000

Partnership & Prize Funding Opportunities