Remittances – Awash Bank (Ethiopia)
In 2019, Awash Bank in partnership with WDI explored the development of a program that leveraged remittances as both collateral for the loan and information about the borrower. By allowing the borrower to develop a credit rating, remittances can increase access to capital for SMEs at a reasonable rate. In 2020, Awash Bank formally created the loan product and published a procedure manual. Efforts are underway to market this loan product in Ethiopia and with the diaspora community in the US.