What do I have to provide to use Migo?
To use Migo, you need to provide the following:
- A bank account where your remuneration can be settled.
- Integrate into our APIs so you can offer the services in your channels.
- Data on your retail customers. We have a simple and secure upload tool to enable you to upload the data.
- Integrate into our APIs for disbursements and payments.
- If you wish to be an Underwriter on pre-qualified customers, upload a list of customers to Migo along with their data and the amounts (and terms, if you know them) that you are willing to lend to each customer.
- A funded bank account (amount to be agreed with Migo) along with an autopay card so Migo can disburse and return your funds.
Banks / Mobile Wallet owners only:
- Direct debit API on your account / wallet and an account-to-account transfer API to allow us to disburse and collect from customer accounts.
How long does Migo integration take?
It depends on how quickly your integration team can work, but we have several partners that have integrated APIs and launched in under 14 days.
Can I be a Lender to acquire customers since I am booking the loans?
This is only possible if you are also the Distributor. We are only able to share masked customer information with Lenders. Customer KYC details are only shared upon regulatory or government request, so you will need to book a GL entry for the Migo transactions you fulfil rather than book them directly in your ledger. However, if a customer accesses Migo through your channel or interface, you are free to capture the customer since you have attracted them to the service with your marketing push.
BRANDING AND CUSTOMIZATION
Does Migo offer custom solutions or a white-label product?
Migo does not currently offer a white-label and cannot currently customize the user interface or transaction flow. However, if you have pre-qualified your customers for particular amounts or even particular credit terms we will happily follow your guidelines when implementing the loan or credit line to your customers provided you are playing the Underwriter role. Furthermore, we are constantly adding new features and are happy to consider new feature requests from you into consideration.
Can I brand the products?
Yes, but all deployments must display the Migo brand to customers in some way. This is for both our benefit as Migo attracts most of the customer service enquiries along with other customer and regulatory issues you may not want to deal with. You can have Migo as a stand-alone brand in your channel, or have Migo co-branded with your brand, or have “Powered by Migo” under your brand. Please see our brand guidelines for further information.
Can I also take the risk on the credit transactions?
Yes. Provided you are a Lender, you can also become an Underwriter and take the credit risk on transactions you fund. To underwrite, you provide a list of pre-approved customers and the amounts/terms you are willing to offer or you can leverage our pricing and decisioning APIs.
Can I use Migo to lend to my own customers?
Yes. Migo is happy to enable you to lend to your customers. You can choose to take on more roles (Distributor, Payer, Lender, and Underwriter) and Migo essentially becomes a credit engine for the bank. If you have pre-qualified customers with a credit limit, you can share your pre-qualified customer lists with Migo, including the amounts and the terms under which you are willing to lend to them, then Migo will adhere to those guidelines in its lending decisions and just manage the end to end transaction flow. For customers that you have not pre-qualified, you can rely on Migo’s credit decisioning to decide what transactions to approve and for how much, but you take the credit risk and take the associated revenue. If you are unsure about the risk, you can choose to relinquish the Underwriter role (thus, acting only as Distributor, Payer, and Lender) and Migo is happy to step in as the Underwriter and take the risk of lending to the customers, at its discretion.
What risk am I taking as a Lender?
It depends on whether you are also the Underwriter. If you are the Underwriter, you assume all credit risk on the transactions but also benefit from more revenue. Migo provides daily disbursement and payment reports so you can keep track of customer payments and provides portfolio reports and financials for your credit risk team to underwrite the portfolio as a whole.
What does it mean to assume the chargeback risk?
If you are a Merchant in a Distributor role, or you are a Distributor that aggregates and servers merchants, you are responsible for handling chargeback risk. What this means is that if the customer has an issue with a purchase, they are immediately refunded by Migo and the money taken out of the Distributor’s remuneration T+1. If you disagree with a customer dispute, you are encouraged to file a dispute resolution with Migo. Please contact us to find out more about our dispute resolution process.
DATA PRIVACY AND PROTECTION
How does Migo handle data privacy?
Migo takes data privacy seriously and we are fully compliant with GDPR and local laws on privacy. First, we separate PII (Personally Identifiable Information) such as name, address, state of origin, etc.) and non-PII data. When you provide data to us, we ask that you provide strictly non-PII data for the last 6 months for all your retail customers and a real-time or daily feed of such behavioral data. Migo uses the non-PII data to build anonymous risk profiles. After the customer comes in the channel to request service and consents to full data access, you can then supply PII data to Migo via our APIs or provide an API (e.g. SIM Registration API or account KYC API) that we can reference to collect the single customer’s PII data once they consent. It is at that point that we match PII data to the anonymous profile to make a credit decision. We do not to leak information about a customer’s details or activity in any communication. Furthermore, if required, we can bring physical servers into your data center and process the data on-site so that your data never leaves your premises or your company.
How does Migo protect customer data?
Migo protects data in a number of ways and we are PCI-compliant. First, we restrict access to customer data strictly on a need-to-know basis. Raw customer data is only accessible to our small offshore data science team, so no staff outside data science have access to data used for risk analysis. Customer transaction history is only available to customer service and other internal staff as required to assist customers with transactions. Furthermore, we implement state-of-the-art security approaches to protect and segment data from our various partners.
Does Migo share my customer data with anyone else?
Migo does not share your customer data with anyone, including the Lender. Even when the Lender books the transaction, they book the transaction in a GL (General Ledger) entry for the whole portfolio and receive only masked customer information so they do not have the ability to contact your customer directly. The customer data is only unmasked and provided to regulators or government agencies upon request, such as during an examination or audit.
How does Migo help me as a bank?
Migo helps you accelerate your digital strategy with credit. With very little effort, Migo helps you offer overdraft facilities on current accounts and convert your retail customers’ debit cards to credit cards. You can offer additional value to your customers with instant loans and credit-based payments seamlessly integrated into all your channels, including USSD.
How does the bank book the transaction?
As a Lender only, you book all loans as separate retail loans summed in a single GL entry in your core banking system. The Underwriter then acts a collections agent guaranteeing you a return on each loan, earning a spread. You receive daily reports on all loans but the customer details are kept by the Underwriter until requested by during any regulatory audits or examinations. If you are both the Underwriter and the Lender you may book the loans however you choose.
How does Migo help me as a Merchant?
Migo offers you more value than traditional card or account-based debit transactions: higher transaction completion rate, better merchant tools, simple integration, no hardware, and instant settlement to your account.
What do I have to provide to accept Migo payments?
For small merchants without access to IT staff that can handle integrations, visit www.migo.money to register (or dial *561# in Nigeria only); it takes less than a minute. For larger merchants with access to developers that can do API integrations, please integrate with our API and follow the Migo Partner Guide for instructions.
How do I use Migo to drive my revenue?
Encouraging your customers to use Migo will increase your revenue as your customers will have more purchasing power. Furthermore, because your account is funded directly without going through traditional payment card infrastructure, the success rates of transactions will increase. If you own a site or mobile app we encourage you to let your customers know, within the product flow and before they get to the checkout page, that Migo is available for them to use to complete their purchase.
What is the reason for the merchant service fee?
The reason we charge a merchant service fee is simple. Migo empowers your customers with more money to spend and completes your transactions at a higher rate (we have seen increases up to 87%) so you generate more revenue. If Migo increases your revenue by even 5% then Migo has paid for itself.
How does the Commercial Framework apply to me if I am integrating directly as a merchant?
If you are integrating to Migo APIs directly as a merchant, you are entitled to the Distributor revenue. Thus, your Merchant Service Fee will be discounted by the Distributor Fee when you are settled so you pay less fees per transaction. You would assume all chargeback risk.
How does Migo help me as a Payment Gateway?
Migo enables you to add credit-based services to your platform without having to raise lending capital, put your balance sheet at risk, hire data scientists, buy licenses, or any of the myriad of things it takes to build a sustainable credit business. As payment revenues shrink due to competition and/or regulation, credit is a naturally adjacent business to help drive your revenue, margin, and customer satisfaction.
How do I use Migo to drive my revenue?
Encouraging your customers to use Migo will increase your revenue as your customers will have more purchasing power. In your payment gateway or e-commerce integrations we encourage you to let your customers know, within the product flow and before they get to the checkout page, that Migo is available for them to use to complete their purchase.
MOBILE MONEY OPERATORS
How does Migo help me as a Mobile Money Operator?
Migo helps you offer additional value to your customers with credit seamlessly integrated into payments from your wallets. With very little effort, Migo also helps you offer overdraft facilities on wallets and instant loans seamlessly integrated into all your channels, including USSD. This keeps your customers active and using their wallets for their daily financial activities.
How do I use Migo to drive my revenue?
By placing cash into the wallets and allowing overdraft facilities, you can generate more transaction revenue from customer activity and increase customer loyalty to drive lifetime value.
How does Migo help me as an Agent Network?
Migo helps inject liquidity into your network to ease your liquidity management challenges. We can also help drive transaction volume and ticket size both as loans for your agents and as loans for your customers. Your agents will increase their revenue and activity which will reduce agent churn and increase customer confidence.
How does Migo help me as a Telecommunications Operator?
Migo helps your financial services and agent network strategy. In a fully compliant (NCC and CBN) way, you can now enable loans and credit-driven payments to your customer base, whether using their bank accounts or their mobile wallets, assuming you have a PSB (payment service bank) license. Deep financial services have been shown to increase ARPU (Average Revenue Per User) by up to 75%, reduce churn, and generate revenue from dormant data sets you keep.
What do I have to provide to integrate?
Telecommunications operators integrations are more complex given the volume and sensitivity of the data, and the size of your distribution channels. Please contact us for our Telco Integration Guide.
How do I use Migo to drive my revenue?
You can leverage dormant data sets in your business, such as CDRs, to generate alternative revenue streams. Furthermore, while mobile money is a great way to drive financial services, injecting loans will greatly accelerate your strategic position and generate more revenue from your customers – both from the credit transactions and additional payment revenue based on increased wallet balance. We can also support multiple credit products and more importantly multiple lenders to help you aggregate the necessary resources to serve your subscriber base. All of this can be done with very little effort or engineering investment from you.
Does the commercial framework apply to telecommunications operators?
Yes, but we have custom pricing for telecommunications operators. Please contact us at email@example.com to enquire.
How do I implement revenue assurance?
Your revenue assurance team receives automated daily logs for all transactions on your network. You will also be settled daily for all such transactions to enable your revenue assurance team to perform reconciliation.
Can Migo assist me in preparing regulatory approval applications for credit products?
Yes. We have experience helping operators prepare their regulatory documentation. Please contact us for more details.
Why should choose Migo over other potential credit partners?
Migo has a proven platform, having disbursed 3m loans since 2017 and already integrated with multiple telecommunication operators. We have experience navigating both telecommunication and banking regulators. We also know how to handle the mass volume of data coming off your network, know how to score the data, know how to secure the data, can aggregate multiple lenders and multiple banks so you only have to integrate with one partner (Migo) with one integration and one contract. Furthermore, we have proven with our own bank and our own money that our scoring and decisioning works, and we have the resources and the capital to handle your scale.
Is Migo compliant with regulation?
Migo is fully compliant with all CBN (Central Bank of Nigeria), NITDA (National Information Technology Development Agency) , and NCC (Nigerian Communications Commission) regulation.
How does Migo handle AML (Anti-Money Laundering) and KYC (Know-your-customer) compliance?
Migo automatically connects to the Thomson Reuters (Refinitiv) Screening Solution which assists in screening customers against a compiled sanction list i.e. OFAC, UN, EU etc. and identify customers who are either PEPs, high risk, sanctioned entities or individuals during KYC.
Does Migo have a CBN (Central Bank of Nigeria) license?
Migo is a technology platform and is not directly regulated. However, we are indirectly regulated by several agencies including CBN because we have to ensure full compliance for the regulated partners on the platform. Furthermore, we test all our technology under a microfinance bank owned by our parent company to ensure functionality and regulatory compliance.
Does Migo check CRMS (Credit Risk Management System)?
The existing products offered by the credit bureaus are not designed to support digital loans and financial inclusion, both technically (speed of credit response) and commercially (cost of credit check based on loan economics). We have engaged the bureaus and CBN on this matter and they are very aware of the limitation. At this time, we are unable to work with them to drive the financial inclusion agenda.
Do I need a banking or lending license to become a Lender?
We advise you confirm with CBN on your regulatory status. In general, we have not seen CBN react to companies lending to their existing customers or staff (e.g. if you are an employer or a technology company, etc.) but if you lend to customers that are not your existing customers you would generally need a banking or lending license. Again, we advise you confirm with CBN.
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