use cases

Rent-to-own: new powerful financial habit

Launch: 2022


less than 10% end losses, recovery rate x2 better than for typical collection, refusal (return rate) <1%

Corporate customer:phone rentals (leasing) company

Devices sold monthly:5000 pcs

End users:ocal blue-collar workers, immigrants, students

Business targets:end losses (~NPL) <35%
Our customer in CIS was striving for expanding his financing business beyond classic microfinance (payday loans, short-term installments). Its analysts provided company management with new important business insight: borrowers started using their debt to buy smartphones – either as a gift or a child-phone. The insight encourage management to start their phone loans business.

The country regulatory body was especially strict in terms of debt collection procedures, that’s why our customer, despite being successful MFI (microfinance institution) decided to open a separate entity to enter the rent-to-own scheme for their phone loans launch. This is how the discovered a need to enter this new niche in a most efficient yet less risky way – the regulations, while being too strict, had their upside in high creditor protection, thus leaving a company working in a rent-to-own scheme significantly less protected legally.

GetMobi solutions played a crucial role: by integrating our software in their loans business processes and customer journey (including sell-side, the point of sale(POS), our customer launched a highly automated phone financing business which significantly reduces risks via device lock functions. End-users (phone buyers), being aware of device lock possibility, stay informed and highly disciplined along their debt repayment journey.

GetMobi Social components make their debt repayment more of a lifestyle thing – not a burden.
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