Are you looking for a neobank with a pan-African footprint? If so, then you have come to the right place. Read on to learn more about African Finclusion AI, a new neobank.
Diversifying its offerings
A recent Finclusion Group – Lendable collaboration has put $20 million into the bank, a sizable sum in today’s fintech world. The company is making a push to become the next fintech unicorn. This funding will allow the company to diversify its product offerings and further its mission of improving the financial lives of its customers and employees.
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While there’s no shortage of neobanks on the continent, there’s a bit of a gap between the best of the crop and the rest. With the right fintech, however, these startups can offer a slew of products and services that can be rolled out to a wide variety of customers. From consumer loans to employee benefits, from prepaid cards to savings products, the Finclusion Group has the know-how to deliver a personalised experience to every customer.
As a startup, the Finclusion Group has been able to get in touch with some of the largest online monetary providers in the world. These partnerships have allowed the company to build a robust credit scoring model, which has been a boon for its customers. Not only have they built credit histories for thousands of consumers, they have also been able to increase monthly disbursements by fourteen percent over the past eighteen months.
While the company has its finger on the pulse of African finance, it’s also got its eye on the future of the continent. With that in mind, the company is gearing up to launch its first financial hub in West Africa soon. Currently, it has five hubs across five countries, including Mauritius, South Africa, Ghana, Kenya, and Tanzania. By combining a credit scoring model with the latest and greatest in financial technology, Finclusion has the chance to help transform the continent’s financial system.
Forming a pan-African neobank
Neobanks, or digital technology firms, are transforming the financial landscape in many parts of the world. These firms offer a wide range of financial services including payment services, checking and savings accounts, budgeting help and money transfer services.
Despite having high smartphone penetration, Africa has a large unbanked population. This creates a competitive product offering that requires fintechs to serve the unmet demand.
Traditional African banking groups have lacked innovation and expansion across multiple markets. Their slow pace and low capitalisation have made them vulnerable to consolidation. However, neobanks have the opportunity to capture a large market share.
Finclusion Group is one such group. It aims to drive financial inclusion in Sub-Saharan Africa by leveraging artificial intelligence to provide innovative financial technology solutions. In a bid to become a neobank, the company raised $20 million in debt and equity pre-Series A financing from investors such as Jonathan Doerr, Alexander Schuetz, Klemens Hallmann, Christian Angermayer and Manuel Koser.
The group’s focus is on accelerating financial inclusion in Africa by closing the credit gap. It has served 10% of the total customer base in the last year, and plans to increase its portfolio by 30% by 2021. They are currently building Africa’s first credit-led neobank.
Other digital banks in Africa have embraced a credit-led model. TymeBank, Lidya and Cowrywise are a few examples.
The Finclusion Group isn’t just about providing small business loans. This neobank is also about helping Africans live better lives. Its latest round of funding, a $20 million enterprise development fund, will help the fintech juggernaut bolster its presence in the sub-Saharan market. While the company is no stranger to funding, its latest infusion of cash will help the bank to grow beyond its modest footprint in Kenya, Nigeria, and South Africa. In the process, it will add to its credit card count while at the same time enhancing customer satisfaction.
Founded in the spring of 2018 by a trio of finance veterans, the Finclusion Group is using artificial intelligence and a bit of human sagacity to woo customers with a combination of small business loans, payroll loans, and a host of other financial services. A recent round of investment from Lendable, a leading online marketplace for borrowers, will be put to good use while at the same time enabling Finclusion to continue its burgeoning growth story. Finclusion has grown its monthly disbursements by more than a dozen percent over the last nine months and has helped thousands of clients make their budgets go further. To help with this, the fintech juggernaut recently secured a distribution partnership with Kenyan retail giant Shoprite.
To top it off, Finclusion has already tapped into the largest credit card market in Africa. In addition, the Finclusion Group has been able to deploy its credit scoring and customer engagement technology across five countries. Having access to a robust credit card database will allow Finclusion to expand its reach and deliver on its promise of a better life for everyone.