Financial inclusion focused mobile banking platform Ghana's Affinity aims at catering to the needs of the "African populace" in terms of financial accessibility.
In a groundbreaking move, Affinity, a Ghanaian fintech startup, officially launched its operations in October 2024, following the regulator's approval of its mobile app earlier in the year [1]. This innovative digital banking platform, formed in 2022, is set to revolutionize financial services across Africa, particularly for the African majority who have traditionally been underserved by conventional banks [1].
Affinity's unique approach targets informal sector workers and first-time banking users, overcoming barriers such as lack of documentation, high banking fees, and limited branch accessibility [1]. The startup achieves this by eliminating the need for physical branches, making banking services more accessible and inclusive for a wider base of customers.
The digital platform offers a comprehensive suite of financial services, including personal and SME accounts, savings, payments, money transfers, investments, and loans [1]. This tailored approach to the needs of customers operating outside formal financial systems is a game-changer, helping informal workers and new users navigate the complexities of banking.
Affinity's success is evident in its rapid growth since the official launch, with a customer base exceeding 70,000 [1]. The startup's focus remains on scaling operations in Ghana, aiming to deepen financial inclusion across the region.
The startup's loan portfolio delivers exceptional loan performance, with repayment rates of 97% across the lending portfolio and 99% for instant loans [1]. This impressive track record underscores Affinity's commitment to responsible lending and its ability to meet the financial needs of its customers effectively.
Affinity is one of the cheapest digital lenders in the Ghanaian market, making financial inclusion possible where it was previously neglected [1]. The startup's revenue model is primarily based on its lending portfolio, generating over 90% of its revenue [1]. The remaining portion comes from commissions on services like bill payments. Notably, Affinity does not charge any fees to its users.
The company's founder, Tarek Mouganie, acquired a local microfinance institution and secured a license upgrade from the Bank of Ghana in March 2022, marking the first such license granted in over a decade [1]. This strategic move has allowed Affinity to build its loan portfolio around what local micro, small, and medium enterprises (MSMEs) actually need, including instant loans for cash flow, working capital for operations, and growth loans to invest in scaling [1].
Affinity's impact extends beyond Ghana, as it contributes to closing the financial gap across Africa by using technology to democratize access to banking services [2]. The startup's recent $8 million funding round, led by Backed VC and Grazia Equity, reflects confidence in its potential to scale and deepen financial inclusion [2].
In conclusion, Affinity's innovative digital banking platform is transforming financial services in Ghana and beyond, making banking accessible and inclusive for the African majority. By removing traditional barriers and offering tailored financial services, Affinity is empowering informal sector workers and first-time banking users to benefit from savings, payments, credit, and other essential financial services, thereby driving financial inclusion and economic growth across the continent.
References: [1] Affinity, (2024). Affinity Launches Operations in Ghana, Revolutionizing Financial Services for the African Majority. Retrieved from [https://www.affinity.com/press-release-affinity-launches-operations-in-ghana] [2] Ventureburn, (2024). Affinity Closes $8 Million Funding Round, Set to Scale Across Africa. Retrieved from [https://ventureburn.com/affinity-closes-8-million-funding-round-set-to-scale-across-africa/]
- Affinity's innovative approach to fintech, focusing on informal sector workers and first-time banking users, is a game-changer in personal-finance by overcoming barriers such as lack of documentation, high banking fees, and limited branch accessibility.
- The fintech startup, Affinity, generates most of its revenue through its lending portfolio, offering some of the cheapest digital loan services in Ghana, contributing significantly to financial inclusion in the region.
- By leveraging technology to democratize access to banking services, Affinity is not only revolutionizing financial services across Africa but also driving economic growth on the continent by providing tailored financial services for the African majority.
