Dashen Bank has become the first Ethiopian bank to implement an artificial intelligence-powered credit scoring system, marking a significant advancement in the country's financial technology landscape.
The new system, developed in partnership with a leading fintech firm, uses machine learning algorithms to analyze alternative data sources — including mobile money transactions, utility payments, and social media activity — to assess creditworthiness of borrowers who lack traditional credit histories.
Dashen Bank CEO Asfaw Alemu described the innovation as a game-changer for financial inclusion. "In Ethiopia, where formal credit bureau coverage is limited, AI-powered credit scoring can unlock lending opportunities for millions of individuals and small businesses," Alemu said.
The bank has already processed over 10,000 loan applications using the new system, with approval rates increasing by 30% while maintaining portfolio quality. Non-performing loans in the AI-scored portfolio remain below 2%.
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