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Thematic Area:

Rural & Smart Agri-finance Development

Duration:            

2017 – 2018

Client:                

REGMIFA TAF – Access Bank Tanzania

Region:             

Africa

Country Coverage:           

Tanzania

Project Overview

The primary goal of the Project is to provide technical assistance (TA) to Access Bank Tanzania (ABT) to develop an agricultural finance scorecard and process mapping. The key output is a credit scoring model (i.e. a list of observable client characteristics and corresponding optimal weights or coefficients that influence lending decisions), as well as the development of an in-house skill-set that will empower ABT to deploy its client data for improved credit decisions.

Frankfurt School experts carried out activities in the following key areas:

Data assessment and scorecard development:

  • Evaluate the agricultural lending strategy of ABT and define scorecard usage based on ABT’s risk appetite and current loan processes;
  • Assess quantity and quality of current agri-loan data;
  • Determine variables to capture new data points from agriculture clients;
  • Prepare data and build scorecards in an automated excel scorecard; and,
  • Technical and functional testing, run statistical models.

Scorecard implementation, pilot test and roll-out:

  • Review and adjust client pre-requirements, adapting the process to include the use of the scorecard;
  • Prepare scorecard user guide;
  • Develop pilot and monitoring plan as well as tools to measure the results;
  • Train staff of the selected branch on the new agri-loan process including scorecard usage and the launch of the pilot test;
  • Assess pilot results and determine requirements for future roll out; and,
  • During the pilot phase 339 clients were assessed and out of them 322 were disbursed

Fine tuning of scorecard and documents and knowledge transfer:

  • Review and enhance the training user guide; and,
  • Final validation of manuals, processes and scorecard usage.

At the end of the Project, ABT automated the scorecard and rolled it out to all of its rural branches.