FinTech powering the Future of Fair Lending in Emerging Market Economies. PSI ICO rating – 52
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PRE ICO Dates : 01/08/18 – 30/09/18
Roadmap: 4/10 Legal: 1/5 ICO terms: 1/5
Team: 15/20 Token applying: 1/5 Promotion: 8/20
1 189 919
Rank in MW – 355
About PSI ICO (token sale)
PSI has developed proprietary financial technology software-as-a-service funds that include the real-time PSI Affordability and Deduction Management Platform (ADMP), PSI Loan Administration Platform (LAP) and PSI Loan Investment product (PSII).
ADMP ensures that consumers cannot become overindebted as all loans and deductions are processed and updated in real-time on the ADMP software platform. ADMP’s rules engine protects consumers against becoming overextended and ensures the lenders risk is significantly reduced, as the ADMP manages the payroll deduction, the ow of funds & ensures compliance with credit extension rules & legislation for each employer and jurisdiction.
PSI contracts with government & large corporate employers to process payroll deductions in real-time, from the initial loan application to reserving the deduction on the payroll and eventual collection of the deduction from the employer. PSI provides technology, systems and services to streamline & manage the administration of millions of payroll deduction transactions monthly, ensuring seamless & ethically enforced payroll deductions for over 180,000 civil society and corporate employees in sub-Saharan emerging markets and in the process mitigating the collection risk associated with unsecured lending resulting in a reduction in the cost of lending and so advancing PSI’s vision and corporate philosophy of total financial inclusivity.
The ADMP system is proven, has been in-market for six years in countries including Uganda, Botswana, Malawi & South Africa and is earmarked for expansion to further developing markets around the globe. Financial Institutions such as Barclays, Old Mutual, Select Financial Services, Getbucks, Vanguard Life Assurance, Blue Financial Services, Letshego, Bayport, Centenary Bank, Equity Bank, KCB Bank, DFCU Bank, Standard Chartered Bank, Stanbic Bank, Global Trust Bank, Housing Finance Bank, Crane Bank, Sanlam Life Insurance etc have been making use of the ADMP with remarkable success.
ADMP acts as a trusted deduction management platform and facilitates compliance with legislated payroll deduction processing, while enabling employers to set and maintain protective rules and standards to ensure their employees are shielded from over indebtedness and ruthless lending practices. The deductions managed by the ADMP are collected prior to the consumer receiving his salary into his bank account and any other payments not managed by the ADMP is paid. The company earns revenue on each salary deduction it processes on behalf of financial services providers and the service does not cost the employer, the state or the consumer.
By utilizing its unique position as the administrator of the deduction platform the company has determined, with 6 years of operational experience, that customers within the ADMP platform are not able to default on loans and collections within this platform has yielded as high as a 99.6% repayment collection rate.
Despite this, Financial Services Providers have been slow to adopt new credit models & have not responded to the changing credit profile of these customers by lowering their credit risk and rerating their loans to account for this change.
This has led to a situation where ADMP customers are in effect cross-subsidising poor credit risk customers and due to lending limits imposed cannot access capital to improve their lives based on their individual repayment profiles, which are at the very top tier of the credit worthiness scale.
LAP provides technology to financial services providers that enables them to manage loan processing, loan book management and administration and earns revenue on every loan application processed by the financial services provider.
Leveraging this unique customer insight the company will through PSII invest in the loan books of approved lenders who will issue quasi-secured loans to PSI consumers, provided these loans are processed through the ADMP and LAP systems.
This will secure the loans, ensure an unprecedented 99.6% collection rate, keeping in mind average default rates for unsecured lending of up to 45%, while ensuring profitability and ethically sustained growth for the company, drive down the cost of borrowing for the consumers and introduce robust competition into the market, forcing entrenched financial services companies to re-evaluate their lending criteria and adjust their rates downward to match the new marketplace.