Interview with Lucinda Revell, the co-founder of Boost Cambodia
Cambodia, 8 June 2023 – Boost Capital is a fintech company with a difference. Its vision is to make it cheaper and easier for people globally to access microfinance services and financial education utlisiing technology.
Thanks to LEAP201’s support, Boost has been enabled to deepen its impact on underbanked communities, especially in Cambodia.
“While being supported by LEAP201, Boost has successfully closed a US$2.5m seed funding round. We also added 2 more banking partners in Cambodia and achieved commercial agreements with 2 banks in the Philippines and 1 in Kenya (successfully expanding into two new markets) and began exploring expansion into Indonesia”, said Ms Lucinda Revell, the co-founder of Boost.
With a focus on inclusion, Boost’s main product is a chatbot that allows end users to submit their information and receive a loan offer within 10 minutes of the first interaction. The chatbot exists within messaging apps such as Facebook Messenger, Telegram, and WhatsApp. Designed to take users through the loan application process in a friendly way, it is also a white label technology. This means that banks and financial institutions that Boost works with are able to customise the chatbot to its specifications.
Ms Porhour Ly, Head of Product, Boost Capital shared more. She said, “As the end-users are already familiar with these messaging apps, there is no learning curve and barrier of entry for them. The chatbot handholds them in a way that feels a little more human.”
The chatbot allows for those who might have been previously excluded a more easeful access to finance services.
Ms Ly describes a typical loan application experience for users in the traditional banking system in Cambodia: “Most people would have to travel especially to a bank to apply for a loan. Even when they do, they might not be able to start the application process because they might not have all the necessary documents. Often the first visit would be more about finding information such as the documents needed or loan requirements.”
This process is now more seamless with the chatbot. It prompts the user to enter their details, including questions about their expenses and income. Based on the criteria provided by the bank or financial institution, the chatbot will be able to generate a loan offer. If the offer is accepted, the user then uploads copies of their documents, and can even sign the loan agreement digitally. They can also pause the process at any time and pick up where they left off at their convenience.
Boost’s understanding of the dynamic challenges that banks face makes them an attractive partner for banks. They are able to onboard a new partner within a few weeks. Through Boost’s digital channel, banks can run experiments like trying out an alternative credit-scoring system without impacting their traditional products.
One of Boost’s clients, for example, is Chamroeun, a microfinance institution and a LEAP201 partner. Boost adapted the chatbot to fit Chamroeun’s loan product targeted at the agricultural segment in Cambodia. In this case, Chamroeun wanted to offer its clients a more flexible repayment scheme that was in line with the seasonality of their crops rather than the more traditional monthly repayment scheme used by most banks and financial institutions.
Boost is also hoping to make headway in financial education for these communities. It offers very tailored financial education. “If someone’s loan application is rejected, they can find out more on how to prepare themselves for a future loan application. This financial education exists in chat form and is bite-sized,” said Ms Ly.
In the near future, Boost is planning to grow its presence in the Philippines, Indonesia as well as Kenya – all countries with a sizeable underbanked population. It is also looking to expand its product range to include savings and insurance products.