Digital F&A Lending Solution Goes Live at Coop Bank, Ethiopia – in cooperation with Rabo Partnerships (RP)
Coop Bank, a leading commercial bank in Ethiopia, has partnered with Rabo Partnerships (RP) to introduce an innovative digital solution for farmer lending. This solution aims to streamline the lending process by leveraging data and credit analytics, making agri input loans more accessible and efficient for farmers. The impact of this solution is expected to be transformative, empowering farmers with easier access to financial resources.
Coop Bank is renowned for its grassroots commitment level, with over 80% of its branches located outside the capital. The bank has a strong focus on community empowerment and financial inclusion*. By partnering with RP, Coop Bank aims to further its mission of transforming lives and empowering communities through innovative financial solutions.
Many farmers in remote areas need loans to purchase fertilizers, seeds and crop protection. This digital solution intends to give many unserved farmers the opportunity to access timely financial support, impacting their productivity and growth.
RP co-developed the solution with Coop Bank, tailoring this digital lending channel specifically for smallholder farmers. This innovative solution simplifies the application process, reduces paperwork, and significantly speeds up approval times. Several IT systems were integrated into a single digital flow with an intuitive user interface, real-time application process tracking, automated credit assessment featuring remote sensing insights, and instant disbursement of the funds to buy inputs.
“We are thrilled to partner with Coop Bank in launching this innovative digital solution ”
“We are thrilled to partner with Coop Bank in launching this innovative digital solution and implementing new credit scoring and data analytics capabilities. This collaboration highlights our commitment to empowering farmers and fostering economic development in Ethiopia. We believe this solution will have a lasting positive impact on the farming communities. And besides, it has been a lot of fun to innovate together!" -Tanya Lagoda, Product Manager Rabo Partnerships
In January this system went live in the Coop Bank office, where RP joined in the festive activities.
“Our partnership has been very valuable and empowered us to better serve our agri customers ”
During this event, Yohannes Ambisa, Vice President of Agriculture and Cooperative Relations, and Geleta Abate, Senior Director Technology and Innovation at Coop Bank expressed their appreciation to the RP’s team": “Our partnership has been very valuable and empowered us to better serve our agri customers by means of credit process automation, using multiple data sources including remote sensing data insights, and via a fully digitalized channel, potentially connecting thousands of smallholder farmers to input finance solutions.”
The introduction of this digital solution is expected to transform the landscape of farmer lending at Coop Bank. By making financial resources more accessible and the lending process more efficient, this initiative aims to enhance farmers' productivity and contribute to the overall economic growth of the region.