Topics
Latest
AI
Amazon
Image Credits:Affinity Africa/Alan Compton
Apps
Biotech & Health
Climate
Image Credits:Affinity Africa/Alan Compton
Cloud Computing
commercialism
Crypto
Affinity Africa app.Image Credits:Affinity Africa
Enterprise
EVs
Fintech
fundraise
Gadgets
punt
Government & Policy
ironware
layoff
Media & Entertainment
Meta
Microsoft
Privacy
Robotics
security measures
Social
infinite
startup
TikTok
Transportation
Venture
More from TechCrunch
Events
Startup Battlefield
StrictlyVC
Podcasts
Videos
Partner Content
TechCrunch Brand Studio
Crunchboard
reach Us
Africa ’s top digital banking platforms typically come from high - growth , populous market place like Nigeria , South Africa , and Egypt . ButAffinity Africa , an kip from Ghana , wants to join the conversation . The inauguration has upraise $ 8 million in seed financial support to expand its fiscal product further across the country , where nomadic money is the dominant financial tool .
While peregrine money has become the go - to for fiscal transactions , the traditional banking sphere in Ghana and Africa as a whole stay highly profitable . Since the pandemic , bank building in Ghana haverecorded growthwith anafter - taxation return on equity(RoE ) that outstrip the globular norm .
However , these net bank heavily on fees , while inefficiencies like in high spirits operational costs , extensive in - individual paperwork , and long onboarding time have left millions underserved .
Today , less than 10 % of concern in Africa have admission to quotation , and over 60 % of adults miss formal financial serving , perWorld Bank data point . This grow col has fire need for digital banking alternative like Affinity , which offer a loud , more inclusive model .
Affinity has onboarded over 50,000 customers since its launch last October , its laminitis and CEOTarek Mouganiesays . Notably , 65 % of its users had never accessed formal banking products before , and over 60 % are woman work on in the loose sphere .
So why has it taken this long for a digital banking upstart to gain such traction in Ghana ? The state ’s strict banking rule toy a great role . Unlike neighboring Nigeria , where digital banks can easily operate with microfinance license , such licenses are rare , expensive , and take metre to get in Ghana , making it hard for fintechs to recruit the place .
“ Ghana ’s regulator is focused on protect consumers , especially in sediment - film institutions , ” Mouganie told TechCrunch . “ We had to prove stiff danger management , break even as a microfinance institution , and align our mission with the government ’s goal of banking the unbanked . What ultimately convinced them was how our digital platform reduce friction and glower banking costs for individual and micro , diminished and medium enterprises ( MSMEs . ) ”
Join us at TechCrunch Sessions: AI
Exhibit at TechCrunch Sessions: AI
From investment banking to fintech disruptor
Mouganie , who comes from a 4th - generation Ghanaian family of Lebanese descent , hit the books in the U.K. , garner a knight bachelor ’s and a doctorate before launching his career in academe and finance . He later worked as a director at Man Group , a $ 160 billion global investment fund . There , he worked on major IPO , including Visa and Compartamos , Latin America ’s big microfinance institution .
After return to Ghana 10 twelvemonth ago , Mouganie looked to solve Africa ’s financial comprehension job , a challenge often highlighted in orbicular consulting reports .
“ number like Africa ’s $ 331 billion credit gap are still being quoted today , ” he order . “ Nothing has really changed . That made me taken up with building a full - fledged retail bank for MSMEs , alike to what Santander , Lloyds , or Chase Bank offer in Europe and the U.S. — but tailored for Africa ’s majority . ”
He and a group of friends and family unit kindle $ 2 million to acquire a microfinance savings bank in 2020 . They included funds from selling his London house , he claim . The entity , which received a savings and loans licence , first of its kind granted in over 10 years , served as a examination background for its current banking solutions .
The Ghanaian fintech attend both individuals and micro - enterprise , which are often indistinguishable in Africa . Customers get detached rescue and current accounts with no transaction limits , and the political program at once begins credit - mark substance abuser base on their transaction account .
After a few months of usage , Affinity extends lines of credit with monthly interest rates of 3 % to 7 % . The Accra - based fintech has pay out over $ 15 million in loan across various products , with crying loans growing 30 % month - over - month and a non - performing loan ( NPL ) rate of 3 % .
A hybrid approach: Digital banking with a physical touch
Customers can also access other banking services , include savings , payment , investment , and transfers to banks and mobile money billfold . Last month , 89 % of sedimentation inflows , which have grown 54 % calendar month - over - calendar month since its launching , come from nomadic money top - ups , with the remaining 11 % from bank transfer .
Loans answer for for over 90 % of Affinity ’s receipts , with the persist 10 % coming from fees and delegation on services like utility placard and internet payment via USSD and the mobile app . Its tax income has increased 37 % month - over - month over the last six months , allot to Mouganie .
Like many digital bank in Africa , Affinityblends on-line banking with offline touchpointsthrough its agentive role internet . These agent , about 30 of them , meet pocket-sized business enterprise in person , onboard them to the app , and help bridge over the cartel spread for first - time digital banking users .
Out of its 50,000 customers , 26,000 join through the authority net , and 24,000 signed up using the roving app . Notably , 55 % of agent - acquired client have transitioned to the app , showing solid digital borrowing after onboarding .
“ This shift has led us to rethink our agency scheme — focusing on using agents for onboarding , initial education , and driving digital literacy to further app adoption . We ’re worked up to refine this hybrid growth approaching as we scale , ” Mouganie pronounce .
chemical attraction ’s $ 8 million seed rung was led by European VC firms Grazia Equity ( Germany ) and BACKED VC ( London ) , mark their first African investiture . Other investor let in Enza Capital , Launch Africa , Renew Capital , Finca International , Attijariwafa Ventures , ImpactAssets , get together Eldon Capital , an early backer .
“ At Backed , we are father - first , and we could n’t think of a salutary person to build Africa ’s local savings bank than Tarek , ” said Andre de Haes , founder and managing partner at Backed . “ He started his career investing in money box through the 2008 financial crisis , became an expert in rule and strategy , and has make a humankind - class banking software system wad for Affinity from the footing up . His ability to tie with and understand customers has motor impressive former drug user numbers . ”
