- The initiative is also in Uganda, South Africa, and Nigeria.
- Little App platform is expected to reach Sh35 billion by next year
Britam and Little App have partnered to roll out a plan that will see taxi drivers and delivery agents invest towards their financial goals as well as insure themselves against shocks.
This will be channeled through the Little App where most of these drivers are enrolled and they will be introduced to Britam’s insurance and investment products.
In Kenya, the platform economy is expected to reach $345 million (Sh35 billion) by next year and presents an excellent opportunity to alleviate the growing unemployment challenge.
The deal championed by Consultative Group to Assist the Poor (CGAP) is set to ensure affordability and flexibility in addressing the specific needs of small drivers which was not the case with the previous traditionally designed structure.
Speaking at the signing ceremony, CGAP financial specialist Gayatri Murthy said it is important to design tailored financial products that meet their unique needs in ways that also make business sense.
“We hope to explore this opportunity by working with like-minded partners such as Little and Britam on product pilots,’’ Murthy said.
CGAP is implementing similar pilots to extend innovative financial services to platform workers in other countries including India, Uganda, South Africa, and Nigeria.
Highlighting Little App’s focus on the platform workers, the firm’s CEO Kamal Budhabhatti said they consider the drivers on the platform as partners in Little’s success.
“Since inception, we have built our services with their welfare in mind. This has resulted in tremendous loyalty from the drivers towards Little. We believe that this new partnership will take our association with drivers to the next level,” Budhabhatti said.
Britam’s director for emerging consumers Saurabh Sharma on his part termed the partnership as a milestone in the financial inclusion of platform workers who are ignored by most traditional financial institutions.
He added that by leveraging CGAP’s global experience and technical expertise, Little App aims to roll out innovative products that meet platform workers' unique needs.
"Our existing partnership with Little has already been very successful with more than 100,000 bite-sized policies sold within two years,’’ Sharma said.