THE PRODUCT
People living in developing countries often lack a secure and accessible way to get a loan. Local financial institutions are focused on serving informal or semi-formal employment sectors, making it nearly impossible for small lenders to access credit and develop a financial history.
FIDO's solution was to bridge this gap by providing financial services through a convenient online platform.
FIDO's customers can apply for a short-term loan via a specialized mobile app or by visiting one of FIDO's branch offices. They get a credit decision onsite and receive their money within just one day. The loan is available to working professionals, be they employees or self-employed. There's no need for collateral or guarantors. The company asks its clients only for valid ID and a bank account to include them in the system.
FIDO Features
- Utilizing mobile technology to reach clients that are under-served by legacy institutions
- Leveraging alternative data sources to minimize docflow and number of intermediaries for underwriting
- Automating business processes to enhance productivity and reduce expenses.
THE CHALLENGE
FIDO management were striving to renew their legacy software system and aggregate the data they were collecting from multiple sources into one centralized hub. They also needed a sophisticated predictive analytics engine to process incoming data and provide accurate credit determinations.
While they already had a mobile application with basic set of features, they needed to make it compatible with current client demands, requiring a powerful update of functionality and integration with the core system.
FIDO's CTO, Eitan Weisbeker, was looking to hire a software development team, but was debating two different options: building an in-house department or outsourcing offshore and cutting recruitment costs by up to 40%.
Eitan had had a positive experience working with Intersog in the past, so it was decided to set up a development team in Kyiv. The location was chosen based on the well-established flight connections between the Ukrainian and Israeli capitals, as well as having the largest talent pool in the country.
"I was exploring other companies in Ukraine, but eventually came back to Intersog."
Eitan Weisbeker, CTO, FIDO
THE TEAM
One of FIDO's major requirements was the professional excellence of engaged talent. This made the candidate selection process quite intense. While the talent search started in December 2015, the first person wasn’t hired until March 2016.
Eitan Weisbeker, CTO, FIDO
At this point, the FIDO team consists of 6 specialists:
- 3 Java Developers
- 2 Android developers
- 1 Data Scientist
THE APPLICATION
The FIDO app was designed to empower clients to apply for a loan on the go. The creators’ main idea was to facilitate the loan process and minimize the amount of user data collected. Thus, the standard workflow consists of just 3 stages:
- Sign-up and polling. A user enters personal data, verifies ID and bank account, and enters the amount he wants to borrow along with the payback time. The repay amount with all associated fees and interest is calculated immediately, making the deal completely transparent.
- Aggregation and analysis. As the user confirms the request, it is transferred to FIDO’s server for processing. The system cross-checks all available information about the user and predicts the probability of an approval. Within a few minutes, the client learns whether or not he is eligible for a loan.
- After getting approved, the user can borrow the requested amount, either directly through the app or through one of FIDO’s offices.
The application runs on Android devices. The first release version was developed within a month and gained significant traction. For the next three months, we were updating the apps’ functionality to present a final fully functional solution. Since then the new versions of the app come out every 2 months.
FIDO TODAY
The partnership between FIDO and Intersog continues and is gaining traction. During 2017, FIDO doubled the company’s client base and the number of loans given, over the past year the same metrics increased fourfold, and, according to forecasts, 2019 will beat this record. Today, over 200,000 people are using FIDO’s services.
Within the cooperation period, FIDO has established a solid presence in Ghana and launched operations in the Philipines. Currently, the company’s management is planning to expand to new regions.
Eitan Weisbeker, CTO, FIDO
