Ethiopian Financial Trio Launches Agar: A Groundbreaking Digital Service
Agar, an integrated digital credit and insurance service, has been launched by Kacha, Lucy Insurance, and Global Bank. This platform allows for paperless insurance access and includes digital loan services for taxi drivers and salaried individuals. It employs an automated credit scoring system and emphasizes the importance of customer data protection.
In a significant move for the Ethiopian financial sector, Kacha, Lucy Insurance, and Global Bank have collaborated to introduce Agar, an integrated digital credit and insurance service. This initiative was unveiled at the Skylight Hotel and aims to provide users with access to insurance without the need for physical documentation. Agar, which means “supporter” in Amharic, also includes a digital loan service targeting taxi-hailing drivers and salaried employees through Kacha’s mobile app.
The insurance component of Agar includes a third-party motor insurance policy, which aligns with Ethiopia’s evolving vehicle ownership landscape, currently at over 1.4 million vehicles. This product offers coverage at premiums starting from 5,000 birr via an online interface, reflecting the recent increase in mandatory insurance premiums set by authorities. To enroll, users must upload necessary vehicle information through the app.
Agar’s financial services cater specifically to two groups: taxi drivers who can access loans for vehicle repairs and employees who can secure salary advances. Additionally, customers may utilize digital loans to manage insurance premium payments, with repayment plans extending from one to nine months. Despite the low insurance penetration in Ethiopia, recent technological advancements are paving the way for innovative services.
Mikias Fekadu from Kacha mentioned that the platform’s development took one and a half years, emphasizing that access to loans depends on transaction history from Global Bank, necessitating one branch visit to activate the service. The system can provide loans up to 50,000 birr, with penalties for late repayment.
Martha Hailemariam, an advisor at the National Bank of Ethiopia, highlighted the importance of safeguarding customer data as the central bank supports these new services. She stressed the need for comprehensive cybersecurity measures to protect user privacy in the increasingly digital financial landscape.
The launch of Agar by Kacha, Lucy Insurance, and Global Bank represents a transformative step in Ethiopia’s fintech and insurance sectors. By providing seamless access to digital insurance and credit services, the initiative addresses key market needs while promoting financial inclusion. With a focus on user-friendly technology and data security, Agar is poised to contribute significantly to the evolving landscape of financial services in the country.
Original Source: shega.co
