Digital banking services tailored for Africans are being developed by Affinity Africa, drawing inspiration from Nubank.
Affinity Africa: A Digital Bank Empowering Financial Inclusion in Ghana
Affinity Africa, a digital bank based in Ghana, is making strides in improving financial inclusion by offering affordable and accessible banking services. The company, which started operations under a microfinance license before officially launching in 2022, has since grown to serve over 60,000 users, with 45,000 of them being active.
Affinity Africa's platform includes features for savings, payments, and loans, catering to both salaried workers and informal traders for managing cash flow. The company's focus on helping its users is evident in its own loan and credit feature, using a credit scoring engine based on user behavior on its platform.
The transition from microfinance to digital banking was not smooth, with regulatory hurdles and the need to build technology, test products, and serve customers. However, in 2024, Affinity Africa raised $8 million from investors to expand its services across Ghana and other markets.
To access credit products, users need to have a Daily Account, which can be opened with just a valid Ghana Card along with a streamlined KYC verification process. This makes it easy for many Ghanaians to qualify. Though specific details on their credit scoring methodology are not explicitly given, Affinity’s commitment to inclusive banking and use of digital platforms imply they likely leverage digital data and streamlined verification to assess creditworthiness fairly and efficiently.
Affinity Africa's loan products are designed to be accessible, with users able to access small loans (GHC 100) after 30 days on the platform, with higher amounts unlocked as they build a responsible track record. These loans require proof of income and, depending on the loan amount, may require collateral.
The company is licensed and regulated by the Bank of Ghana, ensuring compliance and security. This support trust and sustainability in their lending processes. Their model also integrates 24/7 digital banking access and affordable products, making credit and other financial services accessible anytime and at low cost.
Looking forward, Affinity Africa's major focus for this year is Business Banking, aiming to pilot services for micro and small businesses, including digital onboarding and access to loans. This expansion into Business Banking is a testament to Affinity Africa's commitment to financial inclusion and their goal to become a deposit-taking, tech-enabled bank that serves customers through various digital platforms.
Meanwhile, international expansion is a future goal for Affinity Africa, but they are approaching it cautiously to avoid spreading themselves thin. The company has already expanded into markets like Colombia and Mexico, and went public in 2021, following in the footsteps of other successful neobanks like Nubank, which launched its digital banking product in Brazil in 2013.
In conclusion, Affinity Africa is a digital bank that is making a significant impact in Ghana by providing accessible and affordable loan products combined with secure, regulated, and sustainable banking services. The company's focus on financial inclusion and digital banking is a step towards a future where formal financial services are accessible to everyone.
[1] Affinity Africa Official Website: https://www.affinity.africa/ [2] Affinity Africa on Crunchbase: https://www.crunchbase.com/organization/affinity-africa
- Affinity Africa, having secured an investment of $8 million in 2024, plans to invest in business banking services, including digital onboarding and loans for micro and small businesses, signifying a commitment to financial inclusion and expansion beyond Ghana's borders.
- With its focus on digital platforms, streamlined credit scoring, and accessible loan products, Affinity Africa not only empowers financial inclusion in Ghana but also offers a glimpse into the future of lifestyle, technology, and investing in the business sector, making financial services more accessible for every individual.
