Baobab is an evolution of Microcred, focusing on becoming a digital bank providing financial services through technology. It aims to reach over 1 million previously unbanked customers through an agent network and automated products accessible via mobile apps. Baobab has seen success in Senegal and Madagascar, with over 800 agents and 100,000 active clients using the SMS-based platform for deposits, withdrawals, payments and loans. Microcred is transforming its infrastructure and products to better integrate customer data and automation, launching mobile apps and remote account opening to improve access, experience and financial inclusion across Africa.

1. Baobab- -The African Digital Bank
The smart, easy and secure way
to manage your money

2. Who Knows
Our story is about people,
their growing needs and
desires and
we use technology to give them what
they want, when they want it.

3. Why Baobab?
For more than 10 years, Microcred
is focusing on developing the best
tools for financial inclusion in
Africa.
As a customer-first company,
Microcred is always attentive to its
customers evolutions and
growing needs.

4. Evolution
We are Microcred’s
evolution to meet
people's’ growing
financial requirements.
We’re offering an advanced set of
tools which allows our people to do
more with their money in a smart,
easy and secured way.

5. Offer
Baobab gives people
better offers throughout
time based on their
previous experience
and usage.
Baobab is a SMS based
experience; the customer will get
confirmation for every transaction
with an immediate SMS as well as
special benefits and personalized

6. Service
Point
Today there are over 800
Baobab service points in
Senegal and
Madagascar, brings
financial services directly
into the client’s
community,
where people can deposit and
withdraw money, pay their

7. And tomorrow: from Microcred to Baobab….
+
Data
+
Autom
ation
Microfinance
Bank
1 Product
1 Client Segment
1 Channel
African Digital
Bank
Multiple Products
Multiple Segments
Multiple Channels
Microcred has been on a transformation journey from a
bricks and mortar SME bank to a digital bank for
entrepreneurs and the mass market. An important part of
this transformation journey has been to better integrate the
use of client data and automated products to increase
performance and efficiency.
Baobab is becoming Microcred’s digital financial services
and agent banking solution for mass market financial
inclusion in growth markets.
It makes financial transactions easier, faster, and safer for
Microcred clients- micro & SMEs, the mass market and
financially excluded.
There are 3 layers to this transformation:
IT Infrastructure
Delivery channels
Financial Products that meet a variety of client needs and
generate usage

8. Innovation is in our DNA
We’re always looking for
new ways to integrate
first-in-class technologies
in people’s daily meeting
points,
to give easy access to financial
inclusion for everyone.
.

9. Innovation
while digital innovation
often concentrates on the
client experience, for us,
it is also in-house;
we develop tools to strengthen our
internal capacities and performance
.

10. Technology
A centralized IT strategy to meet the demands of the future
.
MIS per country Group Platformfunctional scope
IT Staff in each
country
Group Platform
People &
organization
Local IT
Infrastructure
Group IT strategy
tools & non-
functional
capabilitie
In 2013, Microcred decided to centralize its core banking systems on the cloud. A centralized system enables the Group to
develop products centrally which can easily be deployed to the subsidiaries -thereby achieving economies of scale. (as
opposed to previously where each subsidiary ran their own version of T24).
2013 A 5 years program 2017

11. A multi-channel platform to improve
operations and customer service
Implementing Innovation A multi-channel platform to improve operations and
customer service
Client Service
Agent Network
Portfolio Management
Branch Management
Audit
General Accounting
Data Wherehouse And Analysis
Core Banking
Audit
General Accounting
Data Wherehouse And Analysis
Core Banking
General Accounting
Core Banking
2007 2013 Target 2017
1. T24 Core Banking is the core on top of which comes different new stacks and a progressive development
of the application map.
2. In addition, in order for Microcred to be able to develop a range of delivery channels and minimize its
dependence on third parties, it was important to implement a new multichannel platform. This was
developed with the Software Group with the purpose of creating one integrated seamless experience for the
client while offering multiple channels, including:
A network of agents directly managed by Microcred, under its own brand, enabling Microcred clients to transact
with Microcred.
● A mobile banking channel available to customers through mobile applications on their smartphone that will
enable clients to manage their accounts directly and Microcred to deliver new products « on the go ».
● Seamless mobile and web applications to enhance operational performance, data and automation.
● Partner networks, such as mobile money partners, money transfer providers, or other financial services
providers.
● Third party institutions (government agencies, employers, bill issuers) needing financial services for specific
customers could be plugged into the system to facilitate high volume transactions and foster adoption of
Microcred products.

12. Implementing Innovation
How are we
implementing this
evolution?
1. TECHNOLOGY
2. DISTRIBUTION
3. PRODUCTS
.

13. Technology
Allowing to upgrade our operations,
products & services
Use Case: Baobab Portfolio app
Deployed in 6 countries with1,200 Portfolio
Managers using the mobile app
App Usage leads to
increased productivity

14. Implementing Evolution
How are we
implementing this
evolution?
1. TECHNOLOGY
2. DISTRIBUTION
3. PRODUCTS
.

15. DISTRIBUTION
An agent network to be closer to
the
clients
Significantly increases reach while reducing the
cost of
service
In Senegal and Madagascar
828 Baobab Agents
91,000 Active Clients

16. A multi-channel platform to improve
operations and customer service
Distribution
Remote Account Opening & Client
App
.
A second key delivery channel
In 2017, Microcred plans to launch the first
Baobab mobile application to allow clients to
access and manage their accounts and some
automated loan products depending on their
eligibility via their smartphones. In parallel to the
agent network, the mobile app will allow
customers to become more independent and
efficient in managing their financial lives.

17. Evolution
How are we implementing
this evolution?
1. TECHNOLOGY
2. DISTRIBUTION
3. PRODUCTS
.

18. A multi-channel platform to improve
operations and customer service
Loan
.
Automated loan renewal and nano loans (commercially called Taka)
both using credit scoring in order to improve the client experience
in obtaining loans with minimal time and efficient procedures that
require little to no documentation as they are existing clients.
Automated Loan Renewals
The automated loan renewal uses similar information like the credit scoring model for the nano loans in order to determine which clients are eligible to
automatically renew their loans
What are the benefits?
Quick
Consistent decisioning
Material reduction in fulfillment costs
Develops nascent data analytics capability
TAKA
Based on our credit scoring, current clients can become eligible for a loan of 5,000 to 250,000 FCFA (8–380 Euro) for 1 month. If they repay the loan
before 15 days, they will automatically be eligible for a bigger loan the next time. If they repay the loan before 30 days, they will automatically be eligible
for the same amount. If they repay the loan before the end of 3 months they will eventually be offered another loan.
More about the credit scoring model: It is based on Microcred’s existing client base and the model was designed to categorize clients into different loan
eligibility categories according to their loan repayment and savings history. Credit scoring took information starting from May 2015. The information is
based on repayment history (takes into account clients who repay in advance, clients who pay on time, amount of payments and regularity of payments)
and savings history. The recent history is weighted higher.
What are the benefits?
Clients with good financial behavior are automatically eligible for more nano loans
Clients are more motivated to improve their financial behavior
Additional information: Between September 2016 and January 2017, there were 97,450.93 EUR disbursed in Senegal and
39,075.04 EUR disbursed in Madagascar

19. A multi-channel platform to improve
operations and customer service
The Stoeies
Stories
.

20. Numbers
The numbers - Senegal
1,114,256 Transactions
58,512 New clients
32 291 customers in Senegal are doing Baobab txn after 18:00
The numbers Madagascar
626,624 transactions
42,170 clients who perform transactions
7,475 clients performed transactions after 18:00

21. Loan & Deposit
0
100
200
300
400
500
600
700
2012 2013 2014 2015 2016
Series 3
Series 2
Series 1

22. Volume of Transaction
VOLUME OF TRANSACTION(%) BY
PROXIMITY OF
AGENT TO THE BRANCH
.
0-2.4KM
2.4-4.8KM
4.8-7.3KM
7.3-62.9

23. The challenge
The CHALLENGE
Reach over 1 million previously unbanked clients
through agent
banking and technology-enabled products in
Madagascar,
Senegal and Ivory Coast

24. THE FUTURE
Baobab application for customers
Baobab is Microcred Future
And the future starts today!