Kredi Bank Aspires To Usher Nigerians Into The Digital Banking Future
Kredi Bank aspires to usher Nigerians into the digital banking future
Startups in the financial technology sector are increasingly challenging incumbent banks in Nigeria and throughout Africa by providing people and businesses with a mobile-first, personalized, and frequently lower-cost set of banking services.
Kredimoney, which was founded in Lagos by Afolabi Abimbola and Samuel Orji, is one of these startups. Over the last few months, the team has been quietly putting the finishing touches on its fully-digitized and licensed bank (Kredi Bank). After successfully completing a pilot phase that resulted in the acquisition of more than 8,000 users across the country, the Kredi team is now ready to launch the product on a larger scale.
Kredi Bank is yet another digital-first bank that operates in Nigeria, which is considered to be the epicenter of the neobank phenomenon. Traditional banks in Nigeria are being challenged by fintech startups such as Kuda, Fairmoney, Sparkle, and Brass, which are attempting to capitalize on Nigerians' mistrust of traditional financial institutions.
In order to attract customers in the mass market, Kredi Bank offers services such as account opening, savings (with a 20 percent annual interest rate), loans, bill payments, top-ups, spending analysis, and requesting or sending funds, among others. Besides that, Kredi's investment product, Trickle, allows users to invest while they are spending their money.
He goes on to say that the bank is intended to serve as a "one-stop shop," meeting the financial needs of not only individuals, but also corporations and small and medium-sized enterprises, among other things (SMEs).
Small and medium-sized enterprises (SMEs) will be able to take advantage of Kredi Bank's cash management services, invoice discounting, asset financing, and credit facilities at competitive interest rates after they have been profiled and pre-qualified.
We're focused on smoothly ushering Nigerians into the future of banking with innovative products and convenience, according to TechCabal's interview with the company's co-founder and CEO. We strive to be a one-stop shop for both individuals and businesses, which is in contrast to other banks that specialize in certain areas.
Additionally, the offline customer acquisition strategy employed by Kredi Bank distinguishes it from its peers or competitors in an important way. Recognizing that not all bank account holders have smartphones, the startup has formed partnerships with two mobile payment companies, giving it access to a network of over 20,000 payment agents worldwide.
Potential customers can access the same set of services as those available through the mobile application through the use of these agents, who are equipped with Kredi Bank point-of-sale (POS) devices. Additionally, with the mobile payment companies acting as guarantors, Kredi Bank provides funding to the agents' existing businesses, allowing them to continue to grow.
Other fintech companies make use of the same payment infrastructure.
Additionally, the company's business-to-business (B2B) operations entail the provision of API-based payment infrastructure services to other fintech startups that are either not fully licensed or do not have the technology required to process large payments.
In Abimbola's words, "a number of fintech companies lack the capacity or access to the NIBSS Instant Payments (NIP) system required to process payments on behalf of customers." Therefore, in exchange for a fee, we provide them with a platform through which they can conduct their transactions seamlessly."
Interswitch, Stanbic IBTC Bank, AXA Mansard, Chipper Cash, and Crowdyvest are just a few of the companies that have partnered with the startup. Kredi's payment infrastructure services are also used by a large number of fintech companies, which is a significant number.
Because Abimbola has obtained all of the necessary licenses, the company is able to offer the widest range of products and services possible. "For example, through our partnership with AXA Mansard, we are able to provide our customers with complimentary HMO coverage as well as microinsurance."
After working in the telecommunications, mobile payment, consumer lending, and digital banking industries for more than 15 years, Abimbola decided to start his own fintech company. His business model is unique and he wants to help others do the same.
During his formative years, he worked for Funds and Electronic Transfer Solutions (FETS) Limited, which was one of Nigeria's early pioneers in the field of mobile payments.
'It was a once-in-a-lifetime opportunity for me to be a part of one of Nigeria's pioneers of mobile payments,' Abimbola recalled of his time with the company. "I could see a way to open a financial account that would benefit those who were at the bottom of the economic ladder."
He previously worked in management positions at Renmoney and as a director at Kuda Bank and OPay, among other institutions.
Orji is a finance and investment professional with a legal background, and he is also a co-founder of Kredimoney, a financial technology company. Working for a multinational law firm, in investment banking, and in private equity, he has a diverse background. Most recently, he worked for an emerging markets-focused venture capital firm in the United States, where he was in charge of overseeing fintech investments throughout Sub-Saharan Africa.
Abimbola anticipates that by the end of next year, Kredi Bank will have onboarded approximately one million individual users and 30,000 small and medium-sized enterprises (SMEs).
For 2022, the company intends to expand into three additional African countries, a goal that will be financed through a series of planned funding rounds following the company's initial bootstrap phase.
According to the duo, Kredi has grown at a faster rate than they anticipated, and the team is looking to expand at a rapid pace. "Without spending any money on marketing, we were able to reach 8,000 users," Orji emphasized. "Our customers, without a doubt, are pleased with our product. And we are in discussions with a number of high-profile partners who are interested in collaborating with us."
Abimbola goes on to say that Kredi is at a "inflection point" in its growth trajectory, which he believes is imminent. "We're about to launch our pre-seed round, and we've already received a lot of interest from investors who are amazed at how much traction we've been able to achieve without raising any outside capital."
Several fintech companies are developing services to cater to the needs of a rapidly growing market in Nigeria, which is creating a frenzy of neobank activity. The Kredi team, on the other hand, is unfazed by the competition, with Orji stating that the market's fundamentals support the addition of additional players.
As he explained, "the Nigerian market is vast, and there are still areas that are underserved." "It is simply a matter of concentrating on those components and developing products that are distinct from the competition. This is exactly what Kredi is achieving with his actions."
