The African Finclusion Group (AFT) is an AI company that uses technology to offer credit based financial services to consumers and businesses in the African region. AFT has raised $20 million in a pre-Series A equity and debt funding, and will use this money to expand its operations into new territories. It also plans to rebrand itself to Fin, a name that reflects the company’s new focus on empowering entrepreneurs through the use of artificial intelligence.
Adoption of DFS in Nigeria remains low
The adoption of digital financial services (DFS) in Nigeria is still relatively low, especially for the underbanked. Low adoption rates are primarily attributed to economic factors. However, poor connectivity has also impacted the delivery of DFS. In addition, the absence of a unified agent framework makes it difficult for agents to deliver financial services.
A recent study from the Sustainable and Inclusive Digital Financial Services (SIDFS) project at Lagos Business School examines the state of the digital financial services market in Nigeria. It also identifies market-enabling policies and recommendations for regulatory changes.
Despite the introduction of several regulatory measures, the unbanked population remains significantly underserved. This paper argues that the problem lies in the unavailability of a sustainable value proposition for DFS theinewshunt
Finclusion Group uses AI to provide credit-based financial services
The Finclusion Group uses artificial intelligence to deliver a range of credit-centric products. These include its Branch mobile banking application, which makes financial services more affordable for smallholder farmers. Also, its MyBucks microloans have improved the default rate for consumers in Zambia and South Africa.
A recent study on the uses of AI in the financial sector found that a “credit-centered” approach to underwriting, which uses alternative data to assess a consumer’s financial standing, can improve lending performance and financial inclusion. This is a particularly important feat, given the prevalence of underbanked individuals in emerging markets inewshunt360.
Traditional credit underwriting primarily relies on an individual’s credit history, bank transactions, and assets to assess a loan’s risk. In addition to its traditional functions, AI can help lenders detect and prevent fraudulent activity, and assess a client’s likelihood of repaying a loan.
Finclusion Group rebrands to Fin
Fin inclusion group provides credit gap products to customers across Sub-Saharan Africa. The company is leveraging its financial expertise and proprietary AI algorithms to provide customers with better financial solutions thaionlinegamingworld.
Fin inclusion group is currently operating in Kenya, Tanzania, and South Africa. It offers a variety of credit centric products such as payroll loans and unsecured consumer loans. Currently, the company has more than 40,000 unique customers.
The mission of the Fin inclusion group is to bring financial services to underserved markets, including traditional credit-challenged consumers, and to create value for their employers. To date, the group has granted more than $1 billion in credit.
Fin inclusion group plans to use the funds from its latest financing round to develop new offerings to support microfinance banks. This will enable Fin to expand its footprint across Africa gadgettnews.com.
Finclusion Group raises $20M pre-Series A in debt and equity
Finclusion Group, an African credit-led neobank, has just raised $20 million in a pre-Series A financing round. It will use the funds to expand its existing consumer-facing loan products and develop new offerings.
The bank provides a wide variety of financial services, including payroll loans, buy-now, pay-later services, and future wage loans. It also operates in five countries, including Nigeria, Tanzania, South Africa, Kenya, and Namibia.
As of October 2018, Finclusion serves about 10 percent of its customers. Over 1.2 million employees are employed by its employer partners. While the firm’s numbers have improved in the past few months, its customer base remains small.
According to Fin, its loan book has grown by 30% from last year. Its loans have variable interest rates, ranging from 24 to 42% APR. Default rates are at about 7-8%, and the company is working to lower them.
Finclusion Group’s new equity financing will be used to add new, fully integrated territories
A new $2 million round of equity financing for neobank Finclusion Group should be applauded. Founded in Mauritius in early 2011 by seasoned veterans of the aforementioned neobank biz, the fin is a credit-centric lender that is unabashedly focused on Africa. Currently, the fin is operating in several African countries, including Rwanda and Kenya, and will be launching in a couple more. In the mean time, the fin is laying the foundation for a solid foothold in Tanzania. It is not too hard to see that the fin is destined for a long and prosperous future in this affluent region. Not to mention, the fin will be a worthy successor to the aforementioned neobank. Having the fin in your arsenal is a requisite for any financial institution in these turbulent waters homeideashare.com.
