The Evolution of FairMoney Microfinance Bank in Nigeria; from a loan application to a NeoBank

Over the past 7 years, a good number of lending platforms have sprung up in Nigeria. Rightly so, as access to financial inclusion remains a major scourge for many Nigerians. Access to credit to cover personal and business expenses remains a huge equalizer for economic growth and development.

According to reportlinker, the impact of COVID-19 on consumer lending in Nigeria cannot be overemphasized as the local economy has been hit by recession following various lockdown measures leading to increased unemployment and a decrease disposable income. Major financial service providers were already fearful to lend at the start of 2020, with most banks failing to meet the 65% loan-to-deposit ratio, with various sanctions being imposed by the Central Bank of Nigeria.

We at FairMoney started with our lending products because we realized there was a huge gap in the market as Nigerians of a certain demographic could not access credit facilities to fuel their businesses and their lives, especially through traditional financial institutions.

Our mission has always been to meet the needs of as many Nigerians as possible. Our approach is to provide millions of Nigerians with loans and capital to meet their immediate needs and in some cases to grow their businesses, and so far we have acquired over 5 million happy users, 2 million bank accounts and disbursed over N117 billion in loans since its inception.

Our ultimate goal is to use technology to bank the 60 million Nigerians currently excluded from the financial ecosystem. We have also introduced secure and innovative technology processes to improve our lending operations, as well as a strong privacy policy and comprehensive loan recovery policy which has been successfully deployed over the past 4 years.

“The repayment rate has been impressive because we use technology to underwrite loan facilities and we have also used artificial intelligence to underwrite loan facilities. This is technology that we have developed internally and that a lot of banks have not. This has allowed us to grow our loan portfolio while maintaining a prudent risk appetite. Our non-performing loans are above the average norm, i.e. our rate growth is above the average industry norm. Our default rate has been around 10%,” Laurin Hainy, CEO/co-founder of FairMoney, said in an interview recently.

After 4 years of lending, we realized we could have more impact and deliver more value to Nigerians, and this year we have grown from a quick loan app to a fully-fledged digital bank, as we have recently acquired our microfinance banking license from the Central Bank of Nigeria.

We use the existing infrastructure that we have built to provide customer oriented service to meet the financial needs of customers in Nigeria.

As part of our banking offerings, we provide payroll accounts that help people better manage their funds, and bank account holders have access to a number of benefits including; 100 free bank transfers per month with no transaction fees. We also recently launched our physical debit card which allows our customers to do more with their funds, in the most convenient way possible. We believe that all Nigerians deserve more and at FairMoney we provide them with the tools to achieve more financially.

Along with our recently launched physical debit cards, customers should expect even more exciting updates over the next two months.

For more information about FairMoney Microfinance Bank, please email [email protected] or call us at +234 1 888 5577

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