ShopOkoa Mobile Services

In Kenya, the World Bank reports that only 27.6% of adults have an account with a formal financial institution, and the situation is similar in other African countries. The lack of access to financial services leaves many people unable to pursue economic opportunities, vulnerable to shocks, and at risk of permanent debt or even modern slavery. ShopOkoa Mobile Services aims to address this problem by providing an affordable and accessible financial services platform to blue-collar workers in Kenya, which currently represents a potential market of over 10 million people. These workers typically have low and irregular incomes, limited financial literacy, and face significant barriers to accessing credit and insurance services.

ShopOkoa Mobile Services(SMS) is a mobile-based financial services platform that provides a hybrid savings and insurance-linked on-demand credit solution to blue-collar workers in Kenya which currently represents a potential market of over 10 million people. The platform enables users to save, insure, and access credit conveniently through their mobile phones. 

ShopOkoa's unique value proposition is its ability to incentivize savings while providing access to affordable credit and insurance services. Users can save and access on-demand credit through a simple and easy-to-use mobile application. ShopOkoa is interoperable with mobile money across any network in Africa, which allows its users to easily access their funds and make transactions regardless of their mobile network provider.

The platform also allows users to link their ShopOkoa Mobile account to multiple beneficiaries, typically family members, who can shop on credit from local shops and MSMEs using the ShopOkoa Mobile Services within a specified credit limit. ShopOkoa also partners with Kenyan shops and MSMEs to provide them with working capital and loans through its financial services platform, which contributes to increased economic activity and growth in the region.

ShopOkoa's innovative use of mobile technology, along with its ability to incentivize savings and provide access to affordable credit and insurance services, makes it an attractive solution for the financial inclusion challenges faced by blue-collar workers in Kenya.

ShopOkoa Mobile Services targets blue-collar workers in Kenya, who are currently underserved by traditional banking and financial services due to their irregular income, lack of collateral, and inability to access formal credit. These individuals work in jobs such as construction, transportation, and domestic work, and often have to rely on informal and exploitative credit sources with high-interest rates, leading to a cycle of debt.

ShopOkoa's solution is designed to directly and meaningfully improve the lives of these individuals by providing them with a mobile-based financial services platform that incentivizes savings, provides access to affordable credit and insurance services, and allows them to link multiple beneficiaries to their account for convenient and secure transactions. This will help them to manage their finances more effectively, build savings, and access credit when they need it, without the burden of high-interest rates and predatory lenders.

Additionally, ShopOkoa's partnerships with local shops and MSMEs will provide them with working capital and loans, leading to increased economic activity and growth in the region, which will ultimately benefit the entire community.

The technical work for ShopOkoa Mobile Money Services is performed by a dedicated development team consisting of three software engineers and developers. My co-founders have extensive experience in fintech and software development, and have played a key role in the development of the platform. As the founder my extensive experience includes leading product development with top industry players across the world such as the UN-Habitat, Tech Bridge Invest Kenya, Safaricom Plc Kenya(M-Pesa), and Hult Prize USA for over the past four years.

We have also hired external contractors to help with specific technical tasks, such as security and infrastructure. However, the majority of the technical work has been done in-house by our team of experts.

We believe that having a strong in-house development team is crucial for building and maintaining a high-quality product, and we will continue to invest in this area as we grow. By having a combination of internal and external resources, we are able to quickly and efficiently address technical challenges and drive the continued development of ShopOkoa Mobile Money Services.

In terms of domain expertise, our team has extensive experience in the financial services and technology industries, and we have a deep understanding of the needs of blue-collar workers and small and medium-sized businesses in Africa. We have spent countless hours conducting market research, speaking with customers, and analyzing the needs of this market, and we are confident that we have identified a real need for our solution.

Furthermore, we have received overwhelmingly positive feedback from the small and medium-sized businesses that we have spoken with, and we believe that our solution is highly appealing to this market. Our goal is to provide these businesses with the tools they need to grow and succeed, and we believe that with our combination of financial services and credit management tools, we can do just that.

ShopOkoa Mobile Services(SMS) has already developed and launched its Minimum Viable Product (MVP), which is available for download on the Google Play Store with over 300 daily active users. The MVP provides a hybrid savings and insurance-linked on-demand credit solution, enabling users to access credit using their savings as security. ShopOkoa has already partnered with Kenyan shops and MSMEs to provide them with working capital and loans through their financial services platform.

ShopOkoa Mobile Services is applying to Solve because we believe in the mission and vision of the organization to solve global challenges through innovation and collaboration. As a startup that aims to improve the financial inclusion of blue-collar workers in Kenya, we understand the challenges that come with scaling up and reaching the most vulnerable populations.

Specifically, we hope that Solve can help us overcome the following barriers:

1. Financial Barriers - We need funding and investment to scale up and expand our operations to reach more communities in Kenya and beyond. Solve can help us connect with potential investors and funding opportunities that can provide us with the resources we need to grow.

2. Technical Barriers - As a startup that leverages mobile technology, we need access to the latest technological advancements to stay competitive and relevant. We believe that Solve can help us connect with partners who can provide technical support and expertise that can help us improve and refine our platform.

3. Legal and Cultural Barriers - Operating in emerging markets like Kenya requires a deep understanding of local laws and customs. Solve can connect us with legal experts who can help us navigate the complex legal environment in which we operate.

4. Market Barriers - The market for financial services is highly competitive, and we need to differentiate ourselves to stand out. Solve can help us connect with marketing and branding experts who can help us develop a unique value proposition and grow our customer base.

ShopOkoa Mobile Services is innovative in its approach to addressing the issue of financial exclusion among blue-collar workers in Kenya. The platform provides a unique solution that incentivizes savings and provides access to on-demand credit and insurance services through a mobile-based financial services platform.

One of the key innovations of ShopOkoa Mobile Services is its interoperability with mobile money networks across any network in Africa. This allows users to access their funds and make transactions regardless of their mobile network provider. The platform also enables users to link their ShopOkoa Mobile account to multiple beneficiaries, typically family members, who can shop on credit from local shops and MSMEs within a specified credit limit.

Additionally, ShopOkoa Mobile Services partners with local businesses and MSMEs to provide them with working capital and loans through its financial services platform. This contributes to increased economic activity and growth in the region.

ShopOkoa Mobile Services has set the following impact goals for the next year and the next five years:

Next year:

1. Increase the number of active users on the platform by 100% to reach 1,000 daily active users
2. Disburse $1 million in credit to users
3. Partner with 100,000 new shops and MSMEs to increase economic activity in the region
4. Expand to 3 new markets in East Africa

Next five years:

1. Expand to at least 5 additional African markets, reaching a total of 8 markets
2. Reach 1 million active users and disburse $50 million in credit to users
3. Increase the number of partner shops and MSMEs to 500,000, resulting in increased economic activity in the region and creating job opportunities
4. Establish a savings and credit bureau, enabling users to establish a credit history and increase their financial inclusivity

To achieve these impact goals, ShopOkoa Mobile Services plans to:

1. Conduct aggressive marketing campaigns to increase awareness and adoption of the platform among the target population
2. Expand its product offerings to include more financial services that meet the needs of its target population, such as investment opportunities and remittance services
3. Establish strategic partnerships with financial institutions and mobile network operators to enhance the platform's scalability and interoperability
4. Continue to work with the community to gather feedback and improve its services to better meet the needs of its users.

To measure the progress of ShopOkoa Mobile Services towards its impact goals, the following indicators are being used:

1. Number of active users: This is a measure of the number of people using ShopOkoa Mobile Services to save, insure, and access credit. The goal is to increase the number of active users by 50% in the next year and by 500% in the next five years.

2. Loan repayment rate: This measures the percentage of loans that are being repaid on time. The goal is to maintain a loan repayment rate of at least 80% in the next year and the next five years.

3. Average savings per user: This measures the average amount of savings per user. The goal is to increase the average savings per user by 25% in the next year and by 100% in the next five years.

4. Number of partnerships with local businesses: This measures the number of partnerships established with local businesses to provide them with working capital and loans. The goal is to establish at least 10 new partnerships in the next year and 50 new partnerships in the next five years.

5. Reduction in financial exclusion: This measures the impact of ShopOkoa Mobile Services on reducing financial exclusion among blue-collar workers. The goal is to reduce financial exclusion by 20% in the next year and 50% in the next five years.

ShopOkoa Mobile Services' theory of change is based on the following logic:

1. Problem: Blue-collar workers in Kenya lack access to affordable credit, savings, and insurance services, leading to financial insecurity and vulnerability.

2. Solution: ShopOkoa Mobile Services provides a hybrid savings and insurance-linked on-demand credit solution that enables users to save, insure, and access credit conveniently through their mobile phones. The platform incentivizes savings while providing access to affordable credit and insurance services, and it is interoperable with mobile money across any network in Africa, which allows its users to easily access their funds and make transactions regardless of their mobile network provider.

3. Immediate Outputs: Users open and use ShopOkoa Mobile accounts to save, insure, and access credit. Partner shops and MSMEs receive working capital and loans through the platform.

4. Outcomes: Blue-collar workers and their families are financially empowered and resilient, and local businesses experience increased economic activity and growth.

To achieve this theory of change, ShopOkoa Mobile Services engages in the following activities:

• Developing and improving its mobile-based financial services platform to meet the needs of its target population.
• Partnering with shops and MSMEs to provide them with working capital and loans.
• Conducting outreach and marketing efforts to increase awareness and adoption of the platform among blue-collar workers.
• Continuously gathering and analyzing data to inform and improve the platform and its impact on the target population.

ShopOkoa Mobile Services leverages SMS technology to enable individuals and small businesses in rural and low-income communities to access financial services. Through a simple text message, users can access services such as savings accounts, micro-loans, and insurance. This technology allows ShopOkoa to reach a wider population that may not have access to smartphones or the internet, and provides a simple and user-friendly interface for those who may be new to using digital financial services. The platform also utilizes backend software to manage and process transactions, as well as to provide data analytics for users and financial institutions.

ShopOkoa Mobile Services is committed to incorporating diversity, equity, and inclusivity into our work. We recognize that diversity and inclusion are essential to our success as a company and our ability to create positive impact in the communities we serve.

To ensure diversity in our leadership, we have intentionally recruited team members from diverse backgrounds, including individuals with different nationalities, ethnicities, genders, and socio-economic backgrounds. Our team also includes members with disabilities, ensuring that we are inclusive in our hiring practices.

We are committed to further diversifying our team and ensuring that we create an inclusive environment for all team members. We have implemented policies and practices that promote diversity, equity, and inclusion, including unconscious bias training for our hiring team, promoting work-life balance, and providing equal opportunities for growth and development for all team members.

Furthermore, we work to ensure that our solution is accessible and inclusive for all users, including those with disabilities, by testing and incorporating feedback from diverse groups of individuals during the design and development process. We believe that incorporating diversity, equity, and inclusivity into our work is critical for achieving our mission and creating meaningful impact in the communities we serve.

ShopOkoa Mobile Services' business model is based on providing access to credit and financial services to underserved and financially excluded populations in Kenya through a mobile platform. Our key customers and beneficiaries are low-income individuals, small business owners, and entrepreneurs who are unable to access traditional banking services due to lack of credit history, collateral, or other barriers.

We provide these customers with access to microloans, insurance, savings, and other financial services through our mobile platform. Our platform leverages SMS technology, AI, and machine learning algorithms to analyze creditworthiness and offer personalized financial products to our customers.

Our revenue model is based on interest income from microloans, insurance premiums, and transaction fees charged for the use of our mobile platform. We also partner with financial institutions and other organizations to provide value-added services and generate additional revenue streams.

ShopOkoa's plan to become financially sustainable includes a combination of revenue streams. The company will generate revenue through transaction fees charged to both borrowers and lenders. It will also offer premium services, such as credit scoring and underwriting, to lenders who are looking to expand their reach and portfolio. Additionally, the company plans to partner with financial institutions to provide access to capital and other financial products to its users.

Furthermore, ShopOkoa is actively seeking grant funding and investments from impact investors who share its mission of providing affordable and accessible financial services to underserved populations. The company is also exploring partnerships with international development organizations and NGOs to leverage their networks and resources.

Ultimately, the revenue generated from these sources will allow ShopOkoa to cover its expenses and continue to expand its reach, while remaining true to its mission of promoting financial inclusion and empowerment in emerging markets.

ShopOkoa has successfully secured a $10,000 grant from the Kenyan government to support product development. Additionally, the company has partnered with over 300 local businesses and has active daily users of over 200 SMES and Blue Collar workers. ShopOkoa has also partnered with the Kenya National Chambers of Commerce, which will introduce ShopOkoa to over 250,000 local businesses by the end of the year. These partnerships and user growth demonstrate ShopOkoa's ability to generate revenue and build a sustainable business model. While we cannot provide specific financial information, these successes show that ShopOkoa is on track to achieve financial sustainability.

As a result of these efforts, ShopOkoa has been able to generate revenue and cover its expenses while continuing to invest in product development and growth. In the future, ShopOkoa plans to explore additional revenue streams, such as offering white-label solutions to businesses and expanding into new markets.