15% Increase Portfolio

Edgars successfully extended credit to the previously untapped informal sector, which constituted 18% of all its new accounts.

The Challenge

Edgars, Zimbabwe’s largest clothing and credit retailer, recognized a need for low-risk methods of extending credit to customers with no formal proof of income (no pay-slips), who make up the informal sector.

The Engagement

Edgars and EFL partnered for the “no pay-slip” project in 2014 and rolled out EFL applications with the goal of opening credit lines for the informal segment while accurately differentiating risk.

The Results

Over 15 months, Edgars established lines of credit for 6,000 “no pay-slip” customers, representing 18% of all new accounts at Edgars for the last 12 months. Edgars extended the partnership based on its success and is now rolling out EFL scoring across its national store network.

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* Default reduction refers to the impact of removing the bottom two quintiles of EFL scorers from the borrowing population