World Savings Day: how EDRAF is empowering the unbanked  

For over 1.4 billion people worldwide, saving money isn’t just a challenge, it’s an impossibility. To mark World Savings Day, UCLB highlights the work of its social venture EDRAF. 

World Savings Day, celebrated annually on October 31st, is a global reminder of the importance of financial literacy, inclusion, and the power of saving. When individuals are unbanked, they lack access to basic financial services like savings accounts, credit, or insurance. 

This exclusion has far-reaching consequences: it limits economic mobility, increases vulnerability to exploitation, and perpetuates poverty. But one initiative supported by UCLB is working to change that. 

What is EDRAF? 

EDRAF, the ‘Ethnographic Driven Risk Analysis Framework’, was developed by Professor Lucia Michelutti from UCL Anthropology, alongside Dr. Barbara Verardo. EDRAF combines technology and ethnographic research to assess creditworthiness in communities traditionally excluded from formal finance. 

Rather than relying solely on financial data, EDRAF includes socio-cultural insights, such as family structures, informal lending practices, and local economic dynamics, to build a more accurate picture of risk. This approach is particularly effective in rural South Asia, where formal credit histories are rare and collateral is often unavailable. 

Progress  

In pilot studies across rural North India, EDRAF’s tool was 100% accurate in identifying creditworthy borrowers who lacked traditional financial documentation. These borrowers, often from marginalised communities,  were able to access loans and business opportunities, reducing their reliance on predatory loan sharks or fintech apps. 

UCLB’s role in EDRAF’s journey 

UCLB has played a pivotal role in EDRAF’s development and success. As part of its Social Ventures programme, UCLB has provided business development support, helping EDRAF refine its model and prepare for scale. 

 “At UCLB, we’re proud to have supported EDRAF’s journey from concept to pilot, providing business development, funding, and strategic guidance. Our Social Ventures programme exists to help ventures like EDRAF scale their solutions and deliver measurable social benefit, demonstrating that innovation and inclusion can go hand in hand,” says Ana Lemmo Charnalia, Senior Business Manager, UCLB. 

EDRAF gained access to funding, including entry into the ARC Accelerate programme via the SHAPE Catalyst, which awarded EDRAF £62,500 to further develop its app and validate its impact. It was also included in the London Social Ventures initiative (led by UCLB and Queen Mary University of London), a city-wide programme supporting university-led social ventures with funding, networks, and incubation support. 

Financial inclusion is more than just access to a bank account, it’s about economic empowerment. EDRAF’s work is a powerful example of how academic research, backed by strategic commercialisation, can drive societal impact. 

Are you interested in obtaining a licence for EDRAF? Learn more about EDRAF here.