Five quick lending fintechs that banks should be worried about


YesSince the introduction of FinTech companies at Nigeria’s financial services ecosystem, the story has never been the same. These companies came up with a special kind of innovation that broke down a lot of barriers and made a lot of things possible. More precisely, financial inclusion. Thanks to these innovative companies, Olumide, who lives and works in Lagos, can now easily send money to his unbanked mother in Alawaye town, Ekiti. Along the same lines, he can also easily access a quick loan whenever he needs it, without having to put the whole world as collateral.

The FinTechs vs. Banks story

Indeed, fintechs have been phenomenal so far. However, the stiff competition they brought along has caused discomfort to some of the original space players, though at advantage of customers.

While some banks have been quick in reply to the “threat” posed by fintechs, the truth remains that these companies stay a source of threat. If not for nothing, they continue to attract new customers from time to time; customers who would normally go to traditional bank rooms to do business. It is in light of this this Nairametry decided to highlight some of the fintechs, which banks should beware.

The basis of the ranking

Before proceeding, it is important to note that we have used a number of settings in our analysis. These include:

  1. Ease of registration
  2. Loan conditions
  3. Cost of loan
  4. Innovation
  5. Client experience
  6. Advertising marketing
  7. Social media presence

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It should be noted that each of the five lending platforms featured here strive, in their various capacities, to use innovation to change the lending game. The loan terms are relatively considerate and so are the cost of the loan. In comparison, the customer experience is fair, even though these companies continually use advertisements to gain the liking of existing and new customers. They also use social media platforms to target their customers, as the majority of their customers in the younger population are there.

  1. Kwik Money

It is one of the best fast loan companies in Nigeria, and there are reasons to support that. Iimportant, it is quite easy to access Kwik Money loans. You don’t even need to present any documentation or warranty. Instead, all you need is your phone number which, by the way, needs to be connected to your bank account.

Kwik Money has a special innovation that can access and assess your credit score just using the phone number you provided during registration. How it works is that the fintech automated system will access your financial records and use them to calculate the amount you are eligible to borrow. You might be eligible to borrow anything between N500 and N500,000.

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In terms of the cost of borrowing, you will be required to reimburse at an interest rate of 15% for a period of 14 days, and 25% for a period of thirty days. Interest rates are within the range collected by many other fintech lending platforms.

Kwik Money is relatively active on social networks, even if could Do more increase the number of its followers, in particular on Twitter and Facebook. The company can also put more effort in terms of advertising and marketing in order to reach more customers.

In the meantime, there has been concerns about privacy when using the Kwik Money platform. Customers interviewed during the writing of this report complained that the fact that vital customer information can be accessed through their phone numbers is rather problematic. A client even recalled how his mother and a friend were contacted to help prevent him from repaying his loan. It is a problem for customers because, as another client noted, “What if I didn’t want my family and friends to know that I was borrowing money from Kwik Money?” The fact that they or they could even contact these people without my knowledge is a problem.

2. Carbon (formerly Pay later)

Carbon is yet another fast loan fintech that undoubtedly gives banks headache. Just like Kwik Money, you could become eligible to borrow between N 10,000. and 500,000 N. To access loans through this platform, you will need to download the Carbon application and register. The platform is for everyone: students, employees and business owners.

The cost of carbon borrowing is probably the best compared to other platforms classified here. It’s because the more money you borrow, the lower the interest rate you will have to pay the business. However, before you can borrow a lot of money from Carbon, you need to have successfully completed various steps.

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According to the Carbon scale, the starting point for any borrower is 10,000 N. This loan is for the term of 15 to 30 days at an interest rate of 10%. You will then stay at this step until you have successfully repaid your loans nine times, after which you will become eligible to borrow N50,000 at an interest rate of 5%. This is for a period of 1 to 3 months. The next step will give you the possibility to borrow 100,000 N at an interest rate of 4%, also, for a period of 1-3 months. However, before you can borrow 500,000 N for a period of 3 to 6 months at 2%, you will need to present a list of documents including your letter of employment, a valid Identity card, your bank statement, etc.


3. Zedvance

Zedvance assorted offers employee loan packages, and business owners. If the information available on their website is reliable, customers can borrow up to N5 million upon registration. Registration requires downloading the Zedvance app from Google Play. The company is present in three other major Nigerian cities besides Lagos – Abuja, Ibadan and Port Harcourt.

The cost of this business loan is set at a 5.4665% interest rate per amount you borrow. This makes it one of the most reasonable and attractive interest rates currently offered by a Nigerian lending fintech.

In terms of marketing / advertising, Zedvance does a really good job of gaining the love of existing and potential customers. He has nearly three thousand followers on Twitter with whom he engages regularly, with marketing content.

4. Silver ren

Renmoney is a one of the most popular and innovative lending fintechs in Nigeria today, although its terms of engagement may not be the best. The company say that customers can get ready until N4 million for a 12 month term at 33.9% interest rate. During this time, the company has a policy of collecting what it calls a “management fee” of 35,700 naira which is collected alongside interest. This makes mnot Sit well with some customers.

5. Aella Credit

Just like the process for the other fintechs mentioned above, access the loan of Aella Credit is relatively easy. There are four basic steps: download the app, register, complete an application, and get your money. Based on their assessment, you may be qualified for to receive N1,500 to N90,000 for a period of one to two months. The interest rate ranges from 4% to 29%, depending on company settings.

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In conclusion, it is important to mention that banks are already increasing their games in the area of ​​quick customer loans. The activities of these fintechs have been a wake-call for them to do better. Therefore, companies like Guaranty Trust Bank Plc and Sterling Bank Plc are go to great lengths by offering reduced interest rates and efficient services.


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