According to co-founder and CEO Hainy, Fairmoney has obtained a Microfinance Bank (MfB) licence by the Central Bank of Nigeria (CBN) and aims to extend its services with the additional funds to further cement its position as a digital challenger bank for emerging markets.
“We’re going to delve into SME-lending and we’ll start offering current accounts to our customers”,z he says.
SME financing in Nigeria, like personal microloans, has a dismal track record. Most commercial banks have a preference for lending to government agencies and other large corporations while avoiding riskier personal and small business loans.
This trend also stems from the lack of credit data for customer and small startup owners, but Hainy believes the Nigerian credit system is transforming with the development of API-driven fintech firms such as Okra and Mono.
Hainy further mentions that the startup has gathered data on some of its consumers who are small business owners.
Global consulting firm PwC recently announced Mohammed Kande, its international advisory h…