The Unbanked and Underserved Majority
According to the Bangko Sentral ng Pilipinas (BSP), 7 out 10 adult Filipinos are unbanked. Hence, they are financially excluded from bank-oriented services such as payments, credit, remittances, savings, insurance, and investment.
In the same vein, 55% of Filipinos are in the rural areas. Most of the time, they can't be reached by the advances in digital technology and financial services which are predominantly urban-centric. They spend more money and waste more time when going downtown to avail of the benefits of these advances.
Tackling the ill effects of financial exclusion and technology inaccessibility requires innovative approaches that are non-bank-centric, digitally-driven, and conveniently available to the unbanked and underserved majority. Krego is a response to this challenge.
A Digital Microcredit Services Platform
Krego is an innovative intervention to the undesirable consequences caused by financial exclusion to the unbanked and the underserved as well.
Krego is a token-based digital microcredit system that helps merchant stores offer easily accessible and smartphone-based microcredit services to their qualified consumers. There are currently three variants, namely:
- Petty Cash Loans (PCLs), payable in a month with minimal interest, and suitable for individuals who need to exchange their loaned tokens for cash immediately;
- Digital Purchase Orders (DPOs), also payable in a month with minimal interest, and suitable for consumers who want to exchange their loaned tokens with commodities, goods, and services in one instance;
- CreditQR, also payable in a month with minimal interest, and suitable for consumers who want to exchange their loaned tokens with commodities, goods, and services on a staggered basis within their approved credit limit.
Platforms in Tandem
The Krego digital microcredit system works in tandem with the Blaggo platform. While the Krego platform manages the PCLs, DPOs, and CreditQRs granted to borrowers, it needs the tokens and digital wallet features of the Blaggo platform to facilitate the release and utilization of small loans.
Both free platforms need to be installed to enjoy the fused functionalities of a token-based microcredit and payment management system. Access to web portals are provided to token distributors and merchants for them to monitor their respective transactions.
Incidentally, the Blaggo platform can also be used to purchase tokens from authorized merchants and pay billers, such as electric and water utilities, who have signed up with Blaggo.
Expected Benefits and Impact
When using Krego in tandem with Blaggo, the following benefits and impact can be enjoyed by the key stakeholders:
- free and reliable online digital platforms for microcredit services, which include the mobile apps and web portals, leading to huge savings;
- business opportunities for key stakeholders (merchants, distributors, lenders) with additional revenue streams;
- digital microcredit services made conveniently available to consumers through enterprising merchant stores in both urban and rural communities of a locality with the support of other key stakeholders (distributors, lenders).
The Krego Microcredit Process
Krego microcredit services can be availed of at authorized community merchant stores. Their proximity to the unbanked and underserved in both urban and rural areas make them the primary candidates for community-based microcredit hubs. The partner-merchants are the human and humane side of the Krego digital platform.
The Krego microcredit process has 6 simple steps, eliminating a lot of paper-based and centralized procedures. Hence, availing of small loans from merchant stores will turn out faster and easier for qualified consumer-borrowers of the partner-merchant.
- Download the Blaggo & Krego Apps at Playstore
- Install Blaggo first and create a Blaggo account
- Install Krego next and use Blaggo credentials to log in
- Select Loan Calculator to know the application details
- Apply for a Small Loan with a Co-Maker via the App
- Select the Merchant offering Microcredit
- Submit the Application via the App
- Merchant assesses the Application online
- Merchant approves the Application
- Borrower is informed of the release
- Borrower claims the Small Loan at the Merchant Store
- Borrower uses the Small Loan as either a PCL, DPO, or CreditQR
- Borrower gets the equivalent Cash, Goods, or Service
- Borrower is reminded of Due Dates
- Borrower pays the Amortization at the Merchant Store
- Borrower is reminded of Payment Delinquency
- Borrower pays the Amortization & Penalty at the Merchant Store
An Inclusive Digital Microcredit Ecosystem
The Krego digital platform accelerates the emergence of an inclusive microcredit ecosystem in a locality that caters to the unbanked and underserved majority.
At the center of the said inclusive ecosystem are the merchant stores that serve as the microcredit hubs of communities in both urban and rural areas of a locality. Their proximity to the unbanked and underserved majority make them primary candidates to offer easily accessible non-bank, digital microcredit services through the free and reliable Krego digital platform. Providing support to the merchant stores are the other key stakeholders of the said inclusive ecosystem — the token distributors and bigger lending groups.
This network of support is replicated in communities of various localities, eventually preserving the endearing Filipino values of bayanihan, pagtutulungan, and pagmamalasakit.
Download the Blaggo & Krego Apps
Use your Android smartphone to scan the QR Codes to download Blaggo and Krego respectively.
Merchant? Distributor? Lender?
Upcoming App: Krego Plus
Krego Plus is a lightweight online lending digital platform that builds on the capabilities of the Krego digital platform for microcredit services. It caters to MSMEs and other enterprising organizations with bigger financial needs and longer payment periods in collaboration with partner-lenders and investment groups who are open to shared-liability and innovative lending approaches. We will keep you posted on the eventual launching of Krego Plus.
Frequently Asked Questions
Krego is an innovative intervention to the undesirable consequences caused by the exclusion of the unbanked and underserved majority to digital financial services, particularly in the realm of microcredit.
Krego is a token-based digital microcredit system that helps merchant stores offer easily accessible and smartphone-based microcredit services to their qualified consumers — which can be granted as either an immediate petty cash loan (PCL), a one-time digital purchase order (DPO), or a staggered small loan functioning like a credit card with credit limit (CreditQR).
First, Krego can be used by small lenders, such as merchant store owners, who don't have their own digital platform for microcredit services -- and with no outright cost at their end. In addition to the huge savings, Krego also offers a noble business opportunity with a decent revenue steam.
Second, the Krego microcredit process eliminates a lot of paper-based and centralized procedures usually attributed to traditional small loan programs for qualified borrowers. Loan application, approval, and release can be done within the day of application through the Krego app and partner merchant sores.
Blaggo tokens and wallets come with the Blaggo app that works in tandem with the Krego app for microcredit services. Blaggo tokens are digital assets stored in Blaggo wallets and useful in loan releases and utilization of tokens. One Blaggo token has a value of 1 Philippine peso.
Krego is envisioned as the digital platform for inclusive and non-bank digital microcredit ecosystems in various localities composed of merchant stores, token distributors, and bigger lending groups that collaborate to cater to the unbanked and underserved majority.
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