The business model is based on payroll-facilitated lending for housing and home improvements, education and other consumption purposes. Through this process, employers deduct monthly loan payments from their employees’ pay slips and remit this directly to Select. This practice enables Select to offer its clients favourable interest rates relative to competitors.
Competition is encouraged by Select. Where this is conducted in a friendly yet competitive environment it can be used to the advantage of both lenders and clients. This is particularly relevant where the client’s debt history is analysed as part of the approval process. The use of credit bureaus to provide more responsible lending are advocated and used where available.
In all the countries in which Select operates, continuous consultation with government and the private sector is undertaken to ensure that deductions are adequately managed.
Select adheres to international microfinance standards and supports a legislated environment for microfinance. Transparency in our product pricing and services is advocated, and where possible, regulators are engaged before new products are offered to the market, to ensure that these are acceptable. Select favours continuous interaction within the industry and industry regulators to ensure that all stakeholders’ objectives are adhered to and met.
Select’s new business start-up methodology in new countries is modelled on the rapid establishment of cost-effective networks, making the business economically viable as quickly as possible. This approach means that an initial presence is created in major centers and hubs of strong economic activity. Once these are established, the network is expanded into lesser serviced areas and rural regions.