SatSure, the world leader in Earth Observation (EO) space data applications, has announced a strategic partnership with Rabo Partnerships, aiming to revolutionize access to cash flow-based lending for smallholder farmers globally. This unique alliance seeks to address banking challenges and facilitate financial inclusion for unbanked farmers by merging SatSure’s cutting-edge technology with Rabo Partnerships’ financial expertise.
This collaboration aligns with SatSure’s innovative Banking Solution, SatSure Sage, a suite of applications aimed at empowering lending institutions to make informed decisions in agricultural loan management. Through leveraging satellite data, location intelligence, and machine learning, SatSure Sage is designed to bridge information gaps and enable lending institutions to scale operations while simultaneously reducing costs.
Additionally, this suite of applications paves the way for farmers to access credit by providing alternate data points for banks to assess the risk of lending, a crucial feature when traditional data points may be lacking.
David Gerbrands, the Global Head of Advisory and Inclusive Business Ventures at Rabo Partnerships, expressed his enthusiasm about this partnership. “SatSure’s and Rabo Partnerships’ combined technology, network, and capabilities will allow us to help financial institutions strengthen their risk management, collection, and portfolio growth to the agricultural sector, including small holder farmers,” Gerbrands said.
Echoing this sentiment, Prateep Basu, Founder & CEO of SatSure, added, “Leveraging our relationship with banks, we are certain that this collaboration will empower the agri-lending ecosystem to create innovative financial products for unbanked farmers based on the cash flow model rather than traditional land-based collateral, where digitization is still work in progress.”
This groundbreaking partnership aims to tackle various challenges that banks face while developing lending products. These challenges include the continuous monitoring of crop health and stress, associated parameters impacting crop performance and farmer’s income potential, farmer credit access issues in developing countries, and providing alternate data through SatSure’s data products for banks to onboard new-to-credit and new-to-bank farmers.
The collaboration also plans to improve efficient risk monitoring and mitigation for post-loan disbursement with insights from satellite imagery, as well as facilitating efficient planning of loan collections driven by insights from the same imagery.
This new partnership promises to be a significant step forward in improving global financial inclusion for unbanked farmers, potentially transforming the agricultural sector by introducing innovative financial products based on the cash flow model.
Image provided by SatSure