At the Africa 2018 Forum in Egypt, 4G Capital announced the launch of NxtGen, a new credit solution developed specifically for the banking industry that will help provide working capital credit to MSMEs across Africa.
The Seed Funds (TSF) in Ghana will be 4G Capital's first banking customer to utilise NxtGen's turnkey technology solution that integrates seamlessly with their existing banking system. NxtGen will enable TSF to reach the underserved MSME sector across Ghana in an automated and cost-effective way.
TSF will use NxtGen technology to support the 'last mile' retail supply chain by providing working capital credit, blended with 4G Capital's fintech platform to established micro retailers on behalf of large distributors and supply chain aggregators.
This application of NxtGen is based on 4G Capital's 'Kuza' product which has seen success across Kenya since its launch in 2017. To date, Kuza has provided 1,400 businesses over $500,000 in credit. According to a recent survey by TechnoServe, one of 4G Capital's partners, customers using Kuza saw an 82% average increase in revenue over 12 months.
TSF, licensed by the Bank of Ghana and operational since 2014, has rapidly become one of the country's leading financial institutions. With nine branches across greater Accra, the bank's growth strategy is focussed on launching digital-first financial products and services that address financial inclusion through greater interoperability across financial platforms such as mobile money.
4G Capital Founder and CEO, Wayne Hennessy-Barrett said, "We are proud to stand alongside The Seed Funds, showcasing the power of partnership between bank and fintech. Together we seek to address the MSME finance gap in Ghana which currently stands at over $4.9bn".
Albert O. Mmegwa, CEO of The Seed Funds said, "We are excited to partner with 4G Capital to introduce this innovative product to the Ghanaian market. TSF is committed to partnering with innovative fintech companies to develop financial products and services for Ghanaian consumers. We expect the full platform to be disbursing loans at the beginning of next year."
About 4G Capital
4G Capital has supported micro-enterprises in Africa since 2013, providing enterprise training with working capital loans to improve financial literacy and help small businesses grow sustainably.
4G Capital clients receive a bespoke programme of business training to help them use micro-loans to achieve much higher take-home earnings. 4G Capital's proprietorial machine learning technology delivers high fidelity insights from traditionally thin-file customers. It designs scalable credit products and services optimised for clients' business risks, timescales and affordability. Training is delivered via mobile apps and face-to-face outreach. Using only mobile money, loans are accessed in under one minute with either smart or feature phones.
4G Capital consistently achieves very high collections rates without collateral or client refinancing by lending only to viable businesses on the terms for them. 4G Capital is on target to positively impact over 1 million people by 2020. With operations in Kenya and Uganda, and having received multiple industry awards, 4G Capital is now scaling across the continent and expanding its suite of products and services as Africa's Fastest Fintech.
Key 4G Capital achievements to date:
>94% collection rates without refinancing clients
Net Promoter Score 72
Clients increase revenues by average 82%
81% Women Customers
82% Repeat Customers
77% Rural Clients
94% Increased financial literacy
$40M worth of loans to date
>70 locations in Kenya, Uganda and beyond
About The Seed Funds
Established in 2014, TSF is a leading financial institution focused providing innovative and customer-focused financial products and services to the Ghanaian market. The Company operates from 9 physical branches across the Greater Accra region and is working to build-out a digital footprint that will allow it to serve the broader Ghanaian market. TSF product and service offerings includes Corporate Banking, Personal Banking, eBanking, Loans and Advances, Investment and Advisory Services. www.theseedfunds.com