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In Africa, traditional financial institutions are usually unable to meet the needs of part of the population. This creates a great funding gap that tech entrepreneurs are trying to bridge with innovative solutions.
FairMoney is a fintech solution developed by a Nigerian startup, which aims to “build the leading mobile bank for emerging markets.” It allows its users access to instant collateral-free loans.
“Banks stayed apart from this untapped market because of the lack of digital tech expertise to serve people with limited revenues in remote areas. […] We leverage digital technologies to offer financial services to people, even for very small transactions and loans, in remote areas. […] We hit a US$93 million disbursement volume in 2020, despite COVID-19 which impacted lending businesses,” said Laurin Hainy, CEO of FairMoney.
Through its Android app, users can create a FairMoney account by filling the required form. They specifically need the telephone number linked to their Bank Verification Numbers.
Once they create the account, they can link a bank account or card to that account and start receiving loans. The startup requires no documentation but, it is worth mentioning that thanks to the BVN, it can identify its users. In its FAQs, the startup explains that it “collects and processes securely data from your phone (SMS, device details, location, phonebook) to make a lending decision. This data is necessary for us to approve your loan in real-time without asking you for cumbersome paperwork.” Since the launch of its instant loan solution, the startup has attracted thousands of users. Playstore stats show the Android app has been downloaded more than 10 million times.
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