ALP Seminar 2019

Meet Top 13 Fintech Firms that Drive Digital Credits Services in Nigeria

Securing loan through a financial institution in Nigeria is not only stressful; it could be impossible most times. Nigerian banks simply don’t service individuals and small businesses when it comes to credit facilities.

For decades, individuals and small businesses relied on family, friends, and cooperative societies to access credits. The banks only seek deposits from them without corresponding support with credit facilities.

However, some smart fintech firms have been active in the digital credit space in the last few years. They have been addressing the huge individual and small businesses credit market. Customers’ experiences on most of the digital credit platforms that have emerged are amazing because of the interest rate, terms and conditions are simple, the process is easy and available online.

The flexible money lending regulation regimes have made the entry requirement so negligible for fintech firms. In Nigeria, the regulation of money lending has been delegated to the various states of Nigeria since 1990.

The Central Bank of Nigeria [CBN] does not directly monitor the activities of these moneylenders, but it regulates the banks, MFBs, mortgage and other lenders. In this piece, financialtechnology profiles leading digital credit firms that are pioneering the industry in the country.

This is an online platform that facilitates credit facilities in Africa by providing loans for both informal and formal sector of the economy. The platform connects borrowers to lenders and guarantees borrowers’ prompt payback. It receives commission on every successful transaction.

2. Aella Credit
It is a provider of financial employee benefits. It prides itself in building platforms that makes it easier for individuals in Africa to gain access to credit facilities. More than 425 million employed Africans have no access to credit. This company is building a fair alternative to employee lending and empowerment. Its pilot is focused on the Nigerian market. It is integrated with the local credit bureaus.

3. FriendsVow
This internet bank of financial credit connects people with credit online by democratizing access to online credit. Its users can create a weekly, monthly or quarterly line of credit with their friends and family by the click of a button.

4. KiaKia
It is a licensed, entirely-online, direct and P2P lender that uses technology to provide direct personal loans at flexible rates. It matches borrowers with individuals or corporate lenders at mutually-agreed rates. With improved credibility, borrowers can make their own interest rates offer to selected lenders while KiaKia accepts a little fee for creating and managing the platform.

5. Lidya
This company uses mobile-first technology and proprietary credit scoring algorithms to help African businesses and individuals open an account online in 15 minutes, manage funds, and access credit needed to grow their businesses and plan their futures. Its dashboards and tools help businesses to manage receivables and cash flow while assisting individuals to build credit scores that unlock higher credit limits and affordable rates.

6. MKOBO Microfinance Bank
It is a fully MFB licensed by the CBN. Conceived to solve consumers with access to short-term emergency credit, its goal is to provide access to short-term, easily accessible unsecured loans. It caters to the underserved demography. Its aim is to increase financial inclusion. It requires no collateral or guarantor in most cases and offers support when customers need a helping hand.

7. Paylater
It is an entirely online lending platform that provides short-term loans in Nigeria to help cover unexpected expenses or urgent cash needs. Customers can apply for a loan in 24-hour and within a week with its quick application process that allows applicants to know their status in minutes.

8. Paymyrent
This company provides loan facility for the purpose of paying house rent. It provides a loan from N100,000 to N2,500,000. The amount that can be borrowed largely depends on customer’s monthly salary. Approval takes less than 24-hour. After reviewing customer’s bank statement approval is sent once the required documents are submitted. Then a customer is credited in less than 48-hour.

9. QuickCheck
This is an app-based lending platform that uses technology to deliver financial services to individuals and small businesses.

10. RenMoney MFB
It is a consumer finance organization with expertise in the provision of simple money solutions. It operates under the license of a MFB, the closest to a consumer finance banking license available in Nigeria. It has over 25,000 customers. Aside being the first MFB to launch cloud technology with minimal fixed asset investment in Nigeria, it has a functional platform that guarantees and ensures an efficient and scalable operational system with a promise of 24-hour disbursement to customer’s preferred account.

11. Social Lender
This is a lending solution based on social reputation on mobile, online and social media platforms. It is designed to bridge the gap of immediate fund access for people with limited access to formal credit. It uses its own proprietary algorithm to perform a social audit of users on social media, online and other related platforms. It then gives social reputation score to users. Loans are guaranteed by the user’s social profile and network.

12. The Advancer
It is an alternative lending platform that provides collateral free credit solutions to Nigerian salary earners. It helps users to secure assured advances or request project financing in minutes. Apart from offering an efficient, speedy, dependable loaning service entirely online, it charges a flat rate of 7.5% monthly interest irrespective of how much customers borrow.

13. Zedvance
This is a consumer finance firm that provides cash loans to individuals and groups. In partnership with retailers across Lagos, it offers POS finance for consumer goods and appliances.