Home / Fintech

Fintech

Kudimoney Is Building A Full Service Online Only Bank For Africans

Fintech! Fintech! By now, you are probably quite familiar with the word. Essentially, it is the new technology & innovation that aims to compete with traditional financial methods in the delivery of financial services. Well, this article focuses on another Fintech startup in Nigeria; Kudimoney. You should read our article on Fintech startups in Nigeria.

Faith History spoke with Babs Ogundeyi in an interview, you can listen here.

 

Introducing Babs Ogundeyi, Founder at Kudimoney

Before Kudimoney, Babs Ogundeyi worked with PricewaterhouseCoopers (PwC) in England and Nigeria. Babs Ogundeyi’s work at PwC included advising banks. Afterwards, he was a Special Adviser to a state governor in Nigeria. One could imply that perhaps it was while working with the banks that Babs Ogundeyi identified what gaps existed in the industry. This then probably led to the conception of his Fintech startup.

The Fintech industry according to Babs Ogundeyi is a fast-paced one. The startup has been able to adapt to customers’ requirements and changing needs. Therefore, this means they have had to learn very quickly. Like the popular startup opium they have had to “move fast and break things”.

 

Here Is What Kudimoney Does

Kudimoney is building a full service, online only bank in Nigeria and Africa in general.

Its current focus is to help its customers save money. The problems customers have with Nigerian banks have necessitated the launch of Kudimoney. One of these problems is high and unnecessary charges. The startup helps customers get good interest rates on their money. Its aim includes offering a full suite of banking services at affordable price points. The startup not only caters to the banked but also the un-banked. This is the beauty of Fintech. The startup was voted one of the top 50 digital only banks in the world.

Potential customers can sign up on the website to create an account. Accounts are set up within three minutes. Bank Verification Number will be required to set up an account. Customers can get an instant loan on the website at the rate of 2%. This is based on their savings habit.

 

Kudimoney Cares About Its Customers & Security

In addition to the above regarding customers, the startup’s core customers are digital natives. These are netizens between ages 20 – 30 years. Customers can open an account as young as 16 years of age. Futhermore, younger customers can create an account with adult supervision. According to Babs Ogundeyi, one way it cares for these customers is by paying the highest interest rate in Nigeria. This is between 10% to 17%.

Kudimoney is regulated by the same laws and agencies that govern brick & mortar banks. Firstly, one of them is the Central Bank of Nigeria. Additionally, the NDIC also monitors all banks including digital ones. The NDIC is an acronym for Nigeria Deposit Insurance Corporation. Hence customer’s monies are safe.

Do not forget to listen to the full interview. Check out our previous episode here. We would like to hear from you in the comments!

Meet Amplify Pay, The Startup Assumedly Called Nigeria’s Number One Recurring Payments Platform

If you are a keen observer of the Nigerian startup scene you will have realized that there’s a large number of fin-tech startups. By our count there are more than twenty of them. One of such startups is Amplify Pay, a startup that has made it easier to collect recurring & subscription-based payments.

Faith History spoke with Segun Adeyemi, one of its Co-founder, in this interview. Keep reading to learn more about the startup.

 

First, Let’s Meet Segun Adeyemi, Co-founder at Amplify Pay

Segun Adeyemi studied Economics at the University of Lagos where he a built a game called SoccerQuiz.  He built the web game together with a friend. The app was not financially profitable but it was one way to feed his interest in technology. Segun Adeyemi had a passion for technology even though he never studied it at the degree level. He joined the labor market as an intern at a technology company. He also worked as an Investment Banker sometime afterwards.

His foray into the technology was later established when he applied to the Meltwater Entrepreneurial School of Technology (MEST) in Accra, Ghana. His application was successful and he got into the incubator program. He resigned from his employment at the time in order to attend the one year program. During the program at MEST, he learnt a lot of things about Entrepreneurship and was able to test out his ideas. MEST provides everything that Entrepreneurs need to succeed at the initial stage of their journey and beyond. Segun Adeyemi and his Co-founder were able to eventually secure seed funding from MEST. Another startup that has benefited from MEST is Oncenout. Check out its interview with Faith History here.

 

What Exactly Does Amplify Pay Do?

Segun Adeyemi and his team started working on the idea sometimes towards the end of 2015. Amplify Pay was officially launched in Nigeria in June 2016.  Amplify Pay helps businesses collect and manage their online payments. The startup focuses on recurring and subscription-based payments. Mr. Adeyemi considers his platform the most effective way to accept recurring payments in Nigeria as at today. His startup consults and works with micro-finance banks and online lenders. They help these firms think through their automation and digital strategy. Amplify Pay assists some of them in automating disbursements.

‘Amplify Payment Forms’ helps small businesses and startups accept electronic payments in less than five minutes. Users can simply login to the platform and generate payments links. Afterwards, they may share this link with their customers. Customers can buy and make payments for goods and services using the link.

Don’t forget to listen to the full interview here. Check out our previous episode here and here. We would like to hear from you in the comments.

Social Lender Is Seeking To Help Low Income Earners In Africa Get Access To Formal Credit

Nigeria’s fintech industry is not only buzzing with innovative solutions, it is changing how we live and do business. One of such innovative solutions is Social Lender. Social Lender is a lending solution that provides loans to individuals based on their social reputation. Bincom ICT solutions is the mother company of Social Lender.

Faith History spoke with Bade Adesemowo, Co-founder & CTO (Chief Technology Officer) at Social Lender, listen to the interview here. Bade Adesemowo is a techie who started off with website development seventeen years ago. He handles software development and everything technology at Social Lender. The CEO (Chief Executive Officer), Faith Adesemowo, has an investment banking background.

 

Social Lender: Here’s A Brief Background About The Startup

Social Lender piloted its product in 2014 with Sterling Bank. However, the startup officially launched in Nigeria in January 2015. After successfully testing and validating the solution, Sterling Bank took it live. The pilot was crucial as there was no similar solution at the time in Nigeria.

While Sterling Bank currently provides the funds in Nigeria, the startup has gone on to launch in South Africa. It launched in South Africa through Barclays Bank (ABSA Bank). The organization is looking to launch in Ghana in the nearest future. It is however worthy of note that the funds in Nigeria are not only available to Sterling Bank account holders. Non account-holders can also receive the loans. This was initially impossible in the first year the product launched.

 

Social Lender: Loans Are Given Based On Social Reputation

Social Lender helps banks lend money to people based on their social reputation. This includes social media footprint, mobile reputation etc. The social reputation score is not only based on an individual’s social profile. It also assesses the profile of a user’s social guarantor.  The premise for the startup is the fact that every individual has a digital footprint. This is available either on social media or via your telephone contacts. This implies that reputation score is available for individuals who do not have a social media account.

The startup provides the technology that enables banks assess an individual’s social reputation. The individual can then use the reputation to borrow money from banks. Individuals can get a maximum of 100,000 Naira ($277) using their social reputation score. Once a social audit has been conducted, the loan will be paid into the users bank account within ten minutes. The organization is looking to increase the funds to up to 1 million in a few years’ time. One important fact Mr. Adesemowo mentioned (in this interview) was that the platform has a bad debt ratio of 4%. This is in comparison to the average of 10% – 20% in Nigeria. Essentially more than 95% of borrowers are paying up their loans. This proves that the algorithm works.

 

Social Lender: Here’s Why The Solution Is Very Important

The startup’s solution caters to more than 50% of adult Nigerians who lack access to credit. It provides a means to prove their credit worthiness which is one of the barriers to accessing funds.  People use the loans from Social Lender for emergency needs, small scale business capital etc. This has a ripple effect as it goes on to increase economic prosperity.

The startup is also set to launch its USSD platform with its eyes set on low-income earners. It recently signed a partnership with CGAP (Consultative Group to Assist the Poor). The partnership will involve exploring how social data can predict the loan repayment behavior of low-income earners. The pilot program will also provide loans to low-income earners. Feature phone users will also be able to apply for these loans via Social Lender’s USSD platform. You can learn more about the partnership here. Click here to begin the process of getting a loan.

 

Do listen to the full interview with Bade Adesemowo here. Kindly let us know your thoughts in the comments.