ADMiT: Enabling financial inclusion for 15m credit-unaware South Africans

A game-changer for financial inclusion.

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Principa, which positions itself as a leader in decision analytics and credit risk management, is proud to announce the launch of ADMiT, a revolutionary platform expected to transform the financial landscape for millions of credit-unaware and unbanked South Africans. ADMiT leverages advanced psychometric assessments and alternative data to generate credit scores, providing an unprecedented opportunity for individuals who lack traditional credit histories to access much-needed credit. This innovative tool is a game-changer in a market where financial inclusion is critically important.

ADMiT is designed to work in environments with little or no consumer credit or bureau data available, predicting an applicant's willingness to repay loans based on their behavioural responses rather than relying on a consumer’s credit history. This approach opens the door to credit for approximately 15 million South Africans and a staggering 3 billion people worldwide.

"Your ticket to credit" – ADMiT’s mission aligns with Principa's commitment to open doors and transform lives. By providing an alternative credit scoring system, ADMiT helps individuals avoid being forced into accessing high-cost, unregulated credit options while mitigating decisioning risks for lenders.

Lenders of all sizes, from micro-lenders to established banks, can now register to access ADMiT and invite their thin-file client databases to register for a free alternative credit score. With this alternate credit score, lenders can reduce the risk of granting credit to thin-file clients, opening up a previously unreachable market segment to lenders. With a Gini coefficient of 0.32, ADMiT's adopted scoring system is a strong predictor of default and demonstrates high efficiency in the unsecured market.

ADMiT is powered by Principa, a firm with a track record of over two decades of helping lenders make better credit risk decisions in over 30 countries. These credentials bring unparalleled credibility to ADMiT, positioning it as a viable alternative to credit bureau data.

Warren Venter, CEO of Principa, expressed his excitement about the launch of ADMiT: "ADMiT is more than just a credit scoring tool, it's a beacon of hope for millions of individuals who have – until now – been excluded from the financial system. By harnessing the power of psychometric assessments, we are enabling people to demonstrate their creditworthiness and access the credit they need to transform their lives. Principa is thrilled to support this groundbreaking innovation, and we believe it will significantly impact financial inclusion in South Africa and globally."

Principa has successfully engaged in a pilot initiative in collaboration with the World Bank, aimed at promoting financial inclusion for female entrepreneurs in Lesotho. This project is exploring innovative ways to support women-led businesses, enabling better access to credit.

As a result of this initiative, Principa's adopted psychometric scoring model has gained significant recognition. It has been endorsed by the South African National Credit Regulator (NCR) for inclusion as part of lenders’ evaluative mechanisms or models and procedures to be used in meeting its assessment obligations, particularly for thin-file individuals and the unbanked. This endorsement marks an important step in expanding access to credit for underrepresented population segments.

Principa’s partnership with 6DOT50 further strengthens its ADMiT offering by removing significant barriers to entry for consumers without bank accounts. 6DOT50 is a transactional platform that uses vouchers as a store of value and a mode of payment. This innovative alternative to banking offers account holders an easy way to build their digital transactional history and allows lenders to disburse their loan value and receive their instalments.

For more information about ADMiT, visit www.admit.credt or e-mail hello@admit.credit.