EthSwitch S.C., Ethiopia’s national switch operator, has announced plans to launch a credit scoring and digital lending system. The announcement was made during the launch event of Arifpay 3.0. Tsedale G/Egziabher, Director of Business Analysis and Digital Transformation at EthSwitch, shared the update during a panel discussion at the event.

Tsedale stated that the initiative is in its final stages, with the credit scoring model already developed. “We are nearing the completion of a solution that will significantly enhance access to credit and streamline digital lending processes,” she said.

The credit scoring system aims to address Ethiopia’s lack of comprehensive credit data by providing financial institutions with tools for informed decision-making. This system will also offer fairer access to credit for borrowers, particularly small and medium enterprises (SMEs), through detailed financial profiling.

The digital lending platform will complement the credit scoring system by simplifying loan applications, approvals, and disbursements through digital channels. This initiative supports EthSwitch’s mission to foster financial inclusion and technological innovation.

The announcement coincided with the unveiling of Arifpay 3.0, a state-of-the-art digital payment platform introduced by Arifpay Financial Technologies S.C. The platform includes three transformative tools: Arif QR, the Arif Merchant App, and the Arif Terminal Management System (TMS).