TrustLend

The specific problem that TrustLend is addressing is the lack of financial inclusion and access to formal financial services for underserved individuals and small businesses in Tanzania.

In Tanzania, only 17% of the adult population has access to formal financial services, leaving 83% of the population, or approximately 30 million adults, unbanked and unable to access credit, savings, and other essential financial tools. This financial exclusion disproportionately affects low-income communities, rural populations, and micro and small enterprises, which are the backbone of the Tanzanian economy.

Globally, over 1.7 billion adults remain unbanked, with the majority living in developing economies. In Sub-Saharan Africa, the financial inclusion rate is just 43%, meaning that over 350 million adults in the region lack access to formal financial services.

The factors contributing to this problem include limited physical infrastructure, such as bank branches and ATMs, in remote and low-income areas, as well as stringent credit assessment requirements that exclude those without traditional credit histories. This creates a significant barrier to economic opportunity and stunts the growth of small businesses, which are crucial for job creation and sustainable development.

By addressing these barriers and leveraging alternative data sources and AI-powered credit assessment, TrustLend aims to provide affordable and accessible microlending solutions to underserved populations in Tanzania, empowering them to start and grow their businesses, build assets, and ultimately, contribute to the country's economic prosperity.

TrustLend's solution is an innovative fintech platform that leverages artificial intelligence (AI) and alternative data sources to provide accessible and affordable microlending services to underserved individuals and small businesses in Tanzania.

At the core of TrustLend's offering is its AI-powered credit assessment model, which analyzes a diverse range of alternative data points, such as mobile phone usage patterns, utility bill payments, and social media activity, to evaluate the creditworthiness of borrowers. This enables TrustLend to extend microloans to individuals who may not have access to traditional credit history or collateral, thereby expanding financial inclusion.

The platform's user-friendly mobile application allows customers to easily apply for and manage their loans. TrustLend's algorithms process loan applications quickly and efficiently, providing borrowers with fast access to the capital they need to start or grow their businesses.

In addition to its microlending capabilities, TrustLend also offers identity verification and fraud prevention solutions, ensuring secure onboarding and protecting against the risks associated with identity fraud. This comprehensive approach strengthens the overall integrity and trustworthiness of the platform, benefiting both borrowers and lenders.

By harnessing the power of AI and alternative data, TrustLend is able to reach and empower underserved communities in Tanzania, enabling them to access the financial services they need to thrive and contribute to the country's economic prosperity.

TrustLend's solution serves the underserved and financially excluded populations in Tanzania, particularly low-income individuals, rural communities, and micro and small enterprises.

In Tanzania, 83% of the adult population, or approximately 30 million people, lack access to formal financial services. This disproportionately affects marginalized communities, where residents often struggle to access credit, savings, and other essential financial tools to start or grow their businesses and build financial resilience.

TrustLend's AI-powered microlending platform directly addresses the needs of this underserved population by providing them with affordable and accessible loans. By utilizing alternative data sources to assess creditworthiness, the platform is able to extend credit to individuals who would typically be excluded from traditional banking systems due to a lack of formal credit histories or collateral.

This access to capital can have a transformative impact on the lives of TrustLend's customers. Small business owners, for example, will be able to access the funds they need to purchase inventory, invest in equipment, or expand their operations. This, in turn, can lead to increased income, job creation, and overall economic empowerment within their communities.

Additionally, access to microlending can help individuals build credit histories and financial literacy, ultimately leading to greater financial inclusion and stability. By addressing the root causes of financial exclusion, TrustLend's solution has the potential to create a ripple effect of positive change, improving the livelihoods of underserved Tanzanians and contributing to the country's broader economic development.

TrustLend's team is uniquely positioned to deliver this solution to the underserved communities in Tanzania. The team is led by Neema Goryo, a seasoned fintech entrepreneur with over a decade of experience in developing innovative financial inclusion solutions for East African markets.

Neema's deep understanding of the Tanzanian context and close engagement with local communities have been instrumental in shaping TrustLend's approach. She has assembled a diverse team of Tanzanian professionals, including:

• Juma Mwakyembe, a data scientist with extensive experience in developing AI-based credit assessment models tailored to the needs of the unbanked population.
• Amina Kapinga, a financial inclusion expert who has worked extensively with microfinance institutions and cooperatives in rural Tanzania to improve access to financial services.
• Rashid Mlingi, a software engineer with a track record of building user-friendly mobile applications that cater to the unique needs of underserved communities.
• Beatrice Kawawa, a community engagement specialist who has collaborated with local organizations to gather valuable insights and feedback from potential TrustLend customers.

This team's deep-rooted connection to the target communities, combined with their technical expertise and entrepreneurial drive, ensures that TrustLend's solution is designed and implemented in a way that truly resonates with and meets the needs of the underserved Tanzanians it aims to serve.

Through regular community outreach, co-creation workshops, and ongoing feedback loops, the TrustLend team continuously refines its platform to ensure it remains responsive to the evolving needs and priorities of its customers. This collaborative approach is crucial for building trust and driving lasting impact within the communities.

The team has successfully launched the TrustLend platform in the Moshi region of Tanzania, where it has been serving a growing number of underserved customers. While still iterating on the design and business model, the platform has already gained traction and is proving its value to the local community.

To date, TrustLend has provided microloans to over 230 individuals and small businesses in the Moshi pilot region, many of whom were previously excluded from formal financial services. The team has been gathering feedback from these early users to continuously refine the platform and ensure it meets their evolving needs.

Additionally, TrustLend has completed a small fundraising round with investment capital, which has enabled the team to further develop the AI-powered credit assessment algorithms and expand the platform's reach within Tanzania.

The pilot phase has provided valuable insights and learnings that the TrustLend team is leveraging to strengthen the solution and prepare for a broader rollout across the country. By continuously engaging with the communities they serve and iterating on the platform's design, the team is well-positioned to deliver a robust and impactful fintech solution that addresses the pressing issue of financial exclusion in Tanzania.

We are applying to Solve because the program aligns closely with the goals and challenges we are tackling with our TrustLend solution. Specifically, we believe Solve can provide valuable support in overcoming the following barriers:

1. Expansion and scaling: As we move beyond the pilot phase in Moshi, we need support to expand TrustLend's reach across Tanzania. Solve's extensive network of partners and ecosystem could help us identify strategic growth opportunities, develop effective marketing and distribution channels, and secure the necessary resources to scale our operations.

2. Regulatory and policy support: The fintech industry in Tanzania faces a complex regulatory environment that can be challenging to navigate. Solve's connections to policymakers, regulators, and other stakeholders could provide us with valuable guidance and advocacy support to ensure TrustLend's operations remain compliant and aligned with the evolving financial inclusion landscape.

3. Technological advancement: Maintaining the cutting edge of our AI-powered credit assessment model is crucial for the long-term success of TrustLend. Solve's focus on technology and innovation could connect us with technical experts, research institutions, and potential R&D partners to further develop and refine our proprietary algorithms.

4. Community engagement: At the heart of our mission is a deep commitment to the communities we serve. Solve's emphasis on meaningful impact and community-centered design could open doors to new avenues for customer research, co-creation workshops, and grassroots engagement to ensure TrustLend remains responsive to the evolving needs of our target beneficiaries.

By leveraging Solve's resources, expertise, and network, we believe we can overcome these critical barriers and accelerate the growth and impact of our TrustLend solution, ultimately driving greater financial inclusion and economic prosperity in Tanzania.

TrustLend's innovative approach lies in its ability to leverage artificial intelligence and alternative data sources to expand financial inclusion in Tanzania, a market that has traditionally been underserved by traditional lending models.

Most conventional microfinance institutions rely on collateral, credit histories, and other traditional financial records to assess creditworthiness. This approach often excludes the very populations that need access to capital the most – those without formal employment, assets, or credit histories. TrustLend disrupts this paradigm by utilizing advanced machine learning algorithms to analyze alternative data points, such as mobile phone usage patterns, utility bill payments, and social media activity, to determine an individual's creditworthiness.

This unique AI-powered credit assessment model enables TrustLend to reach and serve previously unbanked and underbanked segments of the Tanzanian population. By basing lending decisions on a more comprehensive and inclusive set of data, the platform can unlock access to affordable microloans for a broader spectrum of borrowers, including micro-entrepreneurs, informal workers, and rural communities.

The transformative impact of TrustLend's solution has the potential to catalyze broader positive changes in the financial inclusion landscape in Tanzania and beyond. As more individuals gain access to credit and financial services, they can start and grow their businesses, build assets, and lift themselves and their communities out of poverty. This, in turn, can inspire other fintech players to explore similarly innovative, data-driven approaches to expand financial inclusion, ultimately contributing to the creation of a more equitable and prosperous economic ecosystem.

TrustLend's comprehensive platform, which also includes identity verification and fraud prevention solutions, can serve as a model for other financial institutions seeking to enhance the integrity and trustworthiness of their operations, further driving systemic change in the industry.

TrustLend's theory of change is rooted in the belief that expanding access to affordable and accessible financial services can unlock economic opportunities and drive sustainable development for underserved populations in Tanzania.

Here's how we expect our AI-powered microlending solution to create impact:

Activities:

• Leveraging alternative data sources and machine learning algorithms to develop a robust credit assessment model that can accurately evaluate the creditworthiness of individuals and small businesses
• Building a user-friendly mobile platform that enables fast and efficient loan application, disbursement, and repayment processes
• Implementing robust identity verification and fraud prevention measures to ensure the integrity of the platform

Outputs:

• Provision of microloans to individuals and small enterprises in Tanzania who were previously excluded from formal financial services
• Increased awareness and adoption of digital financial services among the target population
• Establishment of a trustworthy and reliable fintech platform that facilitates responsible lending practices

Outcomes:

• Empowerment of micro-entrepreneurs and small business owners to start, grow, and scale their enterprises, leading to increased income, job creation, and economic prosperity within their communities
• Improvement in the financial resilience and overall well-being of borrowers, as they gain access to credit, savings, and other financial tools to better manage their finances and weather economic shocks
• Reduced inequalities and greater financial inclusion, as more underserved individuals are integrated into the formal financial system

This theory of change is supported by extensive research on the positive impact of microcredit on poverty alleviation, job creation, and socioeconomic development in emerging markets. Additionally, our pilot program in Moshi has provided early evidence of the transformative effects of our solution on the lives of the underserved populations we serve.

TrustLend's primary impact goals are to:

1. Increase financial inclusion and access to affordable credit for underserved individuals and small businesses in Tanzania.
2. Empower micro-entrepreneurs and small business owners to start, grow, and scale their enterprises, leading to increased income, job creation, and economic prosperity within their communities.
3. Enhance the financial resilience and overall well-being of borrowers by providing them with access to credit, savings, and other financial tools to better manage their finances and weather economic shocks.

To measure our progress towards these goals, we have established the following key performance indicators (KPIs):

1. Number of active borrowers served, with a target of reaching 10,000 active borrowers by the end of Year 2.
2. Percentage of borrowers who are first-time users of formal financial services, with a target of 80% by the end of Year 2.
3. Average increase in monthly income for small business owners who have received TrustLend microloans, with a target of 25% increase by the end of Year 2.
4. Percentage of borrowers who report an improvement in their ability to manage financial shocks, with a target of 75% by the end of Year 2.
5. Number of jobs created or sustained as a result of TrustLend loans, with a target of 2,000 jobs by the end of Year 2.

We are collecting this data through a combination of customer surveys, transactional records, and third-party impact assessments. By closely monitoring these KPIs, we can continuously assess the effectiveness of our solution and make data-driven decisions to refine our approach and maximize our impact on the communities we serve.

The core technology that powers TrustLend's solution is its innovative AI-powered credit assessment model.

At the heart of this technology is a machine learning algorithm that analyzes a diverse range of alternative data points to evaluate the creditworthiness of individuals and small businesses. This data includes:

• Mobile phone usage patterns: Tracking factors like call history, airtime purchases, and mobile money transactions to assess financial behavior and stability.
• Utility bill payment history: Monitoring the consistency and timeliness of utility bill payments, such as electricity and water, to gauge a borrower's financial discipline.
• Social media activity: Leveraging publicly available social media data to gather insights into an individual's social and professional networks, entrepreneurial activities, and reputation within the community.
• Merchant transaction data: Analyzing the sales and revenue patterns of small businesses to better understand their cash flow and growth potential.

By incorporating these alternative data sources, TrustLend's AI model is able to generate a comprehensive credit profile for borrowers who may not have access to traditional financial records or collateral. This enables the platform to extend affordable microloans to a much broader population than would be possible with conventional credit evaluation methods.

The AI model is continuously refined and optimized through machine learning techniques, drawing insights from the performance of past loans and feedback from borrowers to improve the accuracy and reliability of its credit assessments.

Underpinning this innovative technology is a secure, user-friendly mobile application that provides customers with a seamless and convenient loan application and management experience. The app also incorporates identity verification and fraud prevention solutions to ensure the integrity of the platform's operations.

By combining advanced AI, alternative data analytics, and a robust digital interface, TrustLend is able to deliver a transformative financial inclusion solution that empowers underserved Tanzanians to access the credit they need to start, grow, and sustain their businesses.

TrustLend's solution team consists of a total of 11 people, with the following breakdown:

Full-time staff: 4
1. Neema Goryo, Chief Executive Officer
2. Juma Mwakyembe, Chief Technology Officer
3. Amina Kapinga, Director of Financial Inclusion
4. Rashid Mlingi, Lead Software Engineer

Part-time staff: 5
1. Beatrice Kawawa, Community Engagement Specialist
2. Fatma Mwakasege, Data Scientist
3. Tatu Mrisho, Product Manager
4. Imani Mputa, Marketing and Communications Associate
5. Baraka Lukanga, Operations Coordinator

Contractors: 2
1. Samson Kimaro, Legal Advisor
2. Zaituni Mwita, Impact Evaluation Consultant

This diverse team of professionals brings a wealth of experience in fintech, financial inclusion, community engagement, and technology to the development of TrustLend solution.

TrustLend has been working on its innovative fintech solution for the past 18 months. The core team, led by CEO Neema Goryo, has been dedicated to developing and refining the AI-powered credit assessment model, building the user-friendly mobile platform, and piloting the solution in the Moshi region of Tanzania. During this time, the team has successfully launched the platform, provided microloans to over 230 individuals and small businesses, and gathered feedback to continuously improve the solution. This period has been crucial in validating the concept and establishing the foundations for TrustLend's future growth across Tanzania.

TrustLend is deeply committed to fostering a diverse, equitable, and inclusive (DEI) team and environment. We believe that a diverse and inclusive workforce is essential for driving innovation, understanding the needs of our target communities, and creating lasting impact.

Our leadership team is currently composed of four individuals from diverse backgrounds in terms of gender, ethnicity, and professional experience. Neema Goryo, our CEO, is a woman who has a strong track record in the fintech industry in Tanzania. Juma Mwakyembe, our CTO, is a young innovator who brings a wealth of expertise in machine learning and AI. Amina Kapinga, our Director of Financial Inclusion, has deep community ties and an intimate understanding of the challenges facing underserved populations. Rashid Mlingi, our Lead Software Engineer, offers valuable technical skills and a passion for using technology to drive social change.

We are committed to expanding the diversity of our team at all levels, including our part-time staff and contractors. To this end, we have implemented the following measures:

• Proactive recruitment strategies to reach and attract a diverse pool of candidates, including leveraging local networks, community organizations, and online platforms.
• Inclusive hiring practices that focus on skills, competencies, and potential rather than just credentials or prior experience.
• Providing unconscious bias training for all hiring managers to mitigate any potential biases in the recruitment and selection process.
• Offering competitive and equitable compensation packages, as well as flexible work arrangements to accommodate the diverse needs of our team members.
• Fostering a collaborative and supportive work culture that celebrates the unique backgrounds and perspectives of each individual.

By embedding DEI principles throughout our organization, we aim to build a high-performing team that is representative of the communities we serve and empowered to deliver transformative impact.

TrustLend's business model is centered around providing affordable and accessible financial services to underserved individuals and small businesses in Tanzania, with the goal of driving financial inclusion and economic empowerment.

Our key customers and beneficiaries are:

1. Unbanked and underbanked individuals, particularly micro-entrepreneurs and informal workers, who lack access to traditional banking services and credit.
2. Small and medium-sized enterprises (SMEs) in the informal sector that struggle to access the capital they need to start, grow, and sustain their businesses.

To serve these target populations, we offer the following core products and services:

1. AI-powered microlending: Using our innovative credit assessment model, we provide small, short-term loans (ranging from $50 to $1,000) to individuals and SMEs who are typically excluded from the formal financial system. In our pilot program, we have advanced an average of $50 for 230 previously unbanked individuals, totaling approximately $11,500 in loans.
2. Digital financial management tools: Our mobile platform offers additional services such as digital savings accounts, bill payment, and financial education to help our customers better manage their finances and build long-term financial resilience.
3. Identity verification and fraud prevention: We leverage technology to ensure the integrity of our platform, protecting both our customers and our own operations.

Our revenue model is based on the interest and fees generated from the microloans we provide. In our pilot program, we have seen $12,000 in revenue from these fees, demonstrating the potential for a sustainable and scalable business model.

TrustLend's plan for becoming financially sustainable is grounded in the revenue generated from the microloans and other digital financial services we offer to our target customers.

Our primary revenue stream is the interest and fees charged on the microloans we provide to unbanked and underbanked individuals and small businesses. In our pilot program, which launched in Moshi, Tanzania, we have already generated $12,000 in revenue from these loan-related fees. This is based on an average loan amount of $50 advanced to 230 previously unbanked borrowers, totaling approximately $11,500 in loans.

Additionally, we plan to introduce other revenue-generating services, such as:

1. Digital savings accounts: By offering secure and accessible digital savings options, we can generate fees and commissions while also promoting financial resilience among our customers.
2. Bill payment services: Providing a platform for our customers to digitally pay their utility bills and other recurring expenses can result in transaction-based revenue.
3. Financial education and advisory services: Offering tailored financial literacy programs and business advisory support to our customers can be monetized through subscription or fee-for-service models.

To further strengthen our financial sustainability, we are actively seeking grants and investment funding to support our operational expenses and fuel our growth. So far, we have secured a $54,000 grant from the Tanzania Digital Inclusion Fund to support the expansion of our microlending program and the development of our mobile platform.

By diversifying our revenue streams and leveraging both earned and contributed income, we are confident in our ability to achieve financial sustainability and scale our impact across Tanzania. The positive traction and early success of our pilot program provide a strong foundation for our long-term viability and growth.