Recent findings have shown that increased investment into innovative technology has accelerated the development of advanced digital platforms, creating alternative ways for service providers to reach new and existing customers. Financial services providers are using technology to transform banking, lending and insurance across Africa, and this has presented opportunities for financial technology companies to create new channels to service those clients in underserved markets.
Finclusion Group aims to be at the forefront of fintech in Africa by leveraging its credit, risk, and technology expertise and knowledge to drive financial inclusion and wellbeing in Africa. The financial technology group uses advanced proprietary AI algorithms developed in-house, coupled with pioneering technology to grant financial services safely and easily, while simultaneously facilitating fraud prevention, maintaining accurate automated credit decisions, and streamlining overall business operations. The group is currently working with leading African brands in FMCG, medical services, and retail among others to enable and empower businesses, their clients and their employees.
The group has recently announced the appointment of Matsi Modise as Chairwoman to accelerate the implementation of the group’s vision. Not a stranger to the tech startup and entrepreneurial space, Matsi is on a mission to contribute to Africa’s skills revolution and boost South African entrepreneurs. She is the Founder and CEO of Furaha Afrika Holdings, Vice-Chairperson of SiMODiSA, Chairperson of Kuehne + Nagel, and sits on the board of The Innovation Hub. Matsi brings to the Finclusion Group formidable experience and a passion for entrepreneurship, innovation, technology and an inclusive African market. Matsi previously was featured as a leader of her generation at the 2016 World Economic Forum Annual Davos meeting, as a top 50 global shaper.
“Financial and digital inclusion is the cornerstone of Africa’s next generation of growth. I joined the Finclusion Group because Africans need to create and tell their story of success. I am passionate about digital platforms that not only are innovative but have seen an opportunity to empower Africans to be more included in the economy, to learn better financial management, and to be able to better themselves ultimately. With our phenomenal team, I hope to see the group grow and push the boundaries in creating access to financial services and financial responsibility and decision-making to everyday people,” said the businesswoman.
Banking penetration and financial inclusion in Africa remain well behind the rest of the world, with credit card access in South Africa (the most mature market) at only 8.9%. Smartphone penetration in Africa is growing at a rapid rate with around one in five young Africans using their mobile devices to purchase products and services. The African market, which has the youngest and fastest-growing population in the world, and is expected to reach 2.5-billon by 2050, is ripe for technological disruption offering Finclusion a chance to leapfrog and benefit from a multi-level multiplier effect.
Finclusion currently operates through its innovative sub-brands with the capability to deploy across multiple Africa countries, namely, Fractal Labs, Nifty, Click2Pay and SmartAdvance.
Group CEO Timothy Nuy highlighted that innovation has and will continue to change the landscape for how individuals experience financial services and the products that serve them, stating that: “Innovations in Financial technology have forced financial services institutions to re-evaluate how they do business and pivot their traditional financial services models to adapt to the evolving industry. Fintech will continue to transform the delivery and adoption of financial services with a focus on ease of use and accessibility. Businesses not adapting will fall behind.”
Finclusion is excited to showcase more of the portfolio, the strides the company has made and the gaps identified in the African market. The company has made partnerships that have allowed for the Group to service over 670 000 clients across Sub-Saharan Africa and to have granted more than $1-billion in loans, with a consistent 7.1% default rate.
The group aims to keep financial inclusion in underserved markets as their main target, and this includes solutions that empower small businesses and individuals to not only have access to financial solutions but solutions that encourage financial responsibility and wellness.