As we celebrate World MSME Day on June 27th, JUMO’s Chief Product and Prediction Officer, Paul Whelpton, reflects on how AI is improving access to finance by enabling fairer pricing, better risk management, and stronger growth opportunities for small businesses across Africa.

Micro, small and medium enterprises (MSMEs) are where economic activity begins for much of Africa. They contribute up to 40% of GDP and provide employment opportunities for most of the continent’s population, often offering the first chance at income for the youth and women. Yet, despite their scale and contribution, many MSMEs remain locked out of the financial systems that would help them grow.

Why MSMEs in Africa are underserved by traditional finance

Traditional banking systems often struggle to support MSMEs due to several structural challenges. For example, many of these businesses operate informally and lack the credit histories banks typically rely on to assess risk, resulting in exclusion or overly conservative loan terms. Their income streams are often inconsistent, making it difficult to meet the rigid repayment schedules of standard financial products. In the absence of suitable options, some entrepreneurs are forced to rely on informal lenders, where high interest rates and limited protections can increase financial strain and undermine long-term viability. From a financial services provider’s perspective, thin-file MSMEs can be seen as high-risk, especially without tools to reliably assess and price that risk at scale.

How JUMO uses AI to unlock finance for MSMEs

We’ve built technical infrastructure and information management systems to meet these challenges head-on, using artificial intelligence to close the gap between small businesses and sustainable financial services.

1. Credit scoring for the underserved

Our AI prediction engine uses alternative data such as mobile wallet usage, transaction patterns and behavioural insights to generate accurate credit assessments for individuals and businesses without formal credit records. This opens the door to finance for millions who were previously considered ‘unbankable’.

2. Personalised lending that adapts to real needs

JUMO’s system draws on over 15,000 predictive features and hundreds of machine learning models to tailor credit offers in real time. Loan amounts, pricing and repayment terms are dynamically adjusted to match each business’s unique profile and capacity.

3. Lower default rates, lower costs

By improving our scoring capability, we achieve 99% prediction accuracy for the outcomes of the assets we manage.

This translates into fairer pricing for MSMEs and better capital efficiency for partners. As more data is collected, the system continues to improve, enabling smarter decisions and greater value for customers over time.

4. Real-time decision-making

Speed and ease of access is essential when running a small business. Our technology supports real-time loan decisions and disbursements, helping MSMEs respond quickly to opportunities or challenges.

When finance is more relevant, timely and fair, small businesses are better equipped to manage cash flow, invest in growth and build resilience.

Why banks and partners choose JUMO’s AI platform

The benefits go beyond individual entrepreneurs. More inclusive finance supports job creation, strengthens supply chains and contributes to broader economic development.

For our partners (banks, payments ecosystems, mobile network operators and capital or development finance providers), JUMO’s AI offers a path to scale without compromising on risk management. It adds a new layer for finance providers to go wider, making it more cost efficient and better suited to the realities of emerging markets.

Transforming MSME finance, one decision at a time

JUMO’s tech is helping transform financial services, not by offering grand solutions, but by improving the everyday decisions that shape opportunity for small businesses. When finance becomes more accurate and accessible, MSMEs are better equipped to thrive, and that’s the kind of progress that drives lasting change.

A more inclusive future through AI and financial innovation

AI isn’t a magic fix, but it is proving to be a powerful enabler of inclusion and growth when applied with care and purpose. As we mark the United Nations’ annual World MSME Day, our focus remains on sustaining and supporting practical progress. For more on how JUMO is transforming financial ecosystems across emerging markets, check out our blogs.