As previously announced, our founding team has made the strategic decision to evolve our focus, marking an exciting new chapter. As part of this, we are thrilled to unveil our new brand identity and refreshed website, marking our transition to the Micro Asset Finance (MAF) Lab.

The time is right to build the next generation of financial inclusion. While previous models generated sales volume, the industry is ready to transition to a future where quality of repayment and funder confidence are the defining metrics of success. The MAF Lab will help spur this transition by establishing micro asset finance as a bankable, sustainable asset class.

We’ve been energized by the positive response to our new direction, and we’ve also received clarifying questions about what this shift to the MAF Lab means in practice. In the spirit of transparency, we wanted to share our answers to an initial set of common questions: 

• Why the name change? Our new name reflects an evolution in our thinking based on extensive industry experience. Through our work as PAYGo Lab, a key insight emerged: while the classic PAYGo model (which bundles sales and credit) was an important first chapter, the industry is poised to evolve. The name change signals our strategic shift to focus on what we see as the necessary next step for building a sustainable and bankable asset class.
• What is the new model you’re proposing? We’ve found that a clean separation of sales and credit functions is highly effective. In this model, a sales company focuses on its core strengths: marketing, distribution, and after-sales service. A separate, dedicated credit entity manages the full credit cycle, much like a specialized Microfinance Institution (MFI).
• This sounds like MFI partnerships. Hasn’t that been challenging in the past? Yes, MFI partnerships did face challenges, often stemming from a mismatch in customer segments or a lack of deep, structural alignment on incentives and operations between the PAYGo company and the MFI. The MAF Lab approach is built on these lessons. We focus on creating the right structures, data transparency, and partnerships from the start to ensure true alignment and long-term success.
• What can PAYGo companies do today? There are clear, actionable steps to strengthen customer receivables portfolio quality:

• • • Step 1: Establish clear accountability for credit quality by making credit decisions independent from sales incentives.
    • Step 2: Begin structuring the separation, either by splitting sales and credit into distinct internal entities or by partnering with a specialist micro asset finance provider.

• Is “micro asset finance” already happening? Yes, we see it emerging in several markets. In urban centers like Lagos and Harare, MFIs and banks are becoming more active in this space. At MAF Lab, we are also supporting the development of dedicated micro asset finance vehicles, such as in24, covering areas where no banks or MFIs can be found.
• What does MAF Lab do? We help last-mile distributors professionalize credit with a clear path to full separation from sales. We also help micro asset finance ventures, both new builds and MFIs, stand up robust operations with good risk management in place.  We believe micro asset finance will become a new, recognized asset class that attracts more stable capital, thanks to its focus on credit quality, transparency, and regulation.
• Same team? Yes. Same people, same mission. New name, sharper model.

We see this as the beginning of a larger conversation about the future of micro asset finance. We’re just getting started and are eager to hear your thoughts, so please reach out with any further questions or comments on this model.

Al**@*****ab.com  –  Da*@*****ab.com  –  Wi****@*****ab.com 

Source: Micro Asset Finance (MAF) Lab.