Login

Lost your password?

Sign Up

Register

Login

Login

Lost your password?

Register

Saturday, May 28, 2022
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion

Africa's
Investment
Gateway

The Exchange
  • Login
  • Register
Subscribe
This Month's Edition
Previous Editions
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
LOGIN
www.theexchange.africa

(L-R) Century Microfinance Bank Chairman Peterson Mwangi , Branch Kenya Managing Director Rose Muturi, Century Microfinance Bank CEO Florence Muchiri and Branch CEO and Co-Founder Matt Flannery. Photo: Branch International.

Kenya: Mobile lender Branch International to launch pan-African digital bank

The company's CEO Matt Flannery said the firm would invest heavily in the strategic venture

by Wanjiku Njugunah
March 1, 2022
in Business
0
Share on FacebookShare on LinkedIn
  • Branch International is planning to roll out a Pan-African digital bank with Kenya as the launchpad
  • The company said it would spearhead the rollout of digital banking services across key markets in Africa once the local operation crystallises before the end of the year
  • The company’s CEO said they would soon make a landmark transition as the first digital lender to expand into the microfinance banking market

Kenyan-based Branch International has outlined plans to roll out a Pan-African digital bank with Kenya as the launch pad.

Best known for digital lending solutions and services in Kenya, Branch says it will spearhead the rollout of digital banking services across key markets in Africa once the local operation crystallises before the end of the year.

The company’s CEO Matt Flannery said the firm would invest heavily in the strategic venture.

Flannery confirmed that the firm had activated its continental rollout plans with Kenya providing a good learning experience.

With the recent acquisition of Century Microfinance Bank, Flannery said the company would soon be making a landmark transition as the first digital lender to expand into the microfinance banking market, allowing for deposit-taking financial services and enhanced lending for individuals and SME clients.

“The establishment of a true pan-African digital bank is long overdue, and at Branch International, we believe this will be a game-changer to deepen financial inclusivity while reaching the underserved markets,” Flannery said.

It pioneered artificial intelligence applications to assess credit risk in markets with poor credit bureau infrastructure and continues to push technology to make financial services more efficient and scalable.

Acquiring Century Microfinance Bank 

Last month, the Central Bank of Kenya (CBK) announced the acquisition of a majority stake in Century Microfinance Bank Limited (Century MFB) by Branch International Limited (Branch) effective January 1, 2022.

Century Microfinance Bank Chairman, Peterson Mwangi, said the bank had made strategic steps to support its evolution into a fully-fledged digital bank.

“In Branch International, we have found a suitable corporate partner who shares our commitment to being the first end-to-end digital microfinance bank for the benefit of our existing and potential clients,” Mwangi said.

Kenya: Branch acquires 85% stake in Century Microfinance Bank

Branch International is headquartered in San Francisco, United States. It operates in India, Kenya, Tanzania, and Nigeria.

It currently serves customers in Kenya, Tanzania, Nigeria and India, with offices in Nairobi, Lagos, Bangalore, Mumbai and Silicon Valley.

Branch international digital bank
Branch International has outlined plans to roll
out a true Pan-African digital bank with Kenya as the launch pad. Photo: Pixabay

The company has been working to break the traditional financial access barriers such as a credit score and bank account by tapping into the rise of mobile technology to reach underserved populations in its operating markets.

Currently, Branch has managed to digitally disburse more than US$ 600million to a growing customer base of more than 4million customers.

Founded by Matt Flannery and Daniel Jung, Branch has received equity investment support from several venture capital firms, including Andreessen Horowitz, Formation 8, CreditEase Fintech Investment Fund (CEFIF), IFC, Khosla Ventures, Trinity Ventures, Victory Park, Triple Point Capital, Foundation Capital and Visa.

Branch raises US$4.9 million, issues over 10 million loans in Kenya

In a related story, the Exchange Africa reported that most Kenyans turn to digital lending platforms first when looking for sources of credit to fund the growth of small businesses.

The State of Digital Lending in Kenya Report 2021 by consumer intelligence firm ReelAnalytics showed that most Kenyans would seek business growth loans from sources such as close family members in the absence of digital lending platforms.

However, the report found that borrowing within family circles is less convenient, as loan accessibility is usually unpredictable.

Respondents also state that family funding is also much less compared to sources like digital lenders.

“Majority (over 60percent) of customers are satisfied with the services of digital lenders and that there really are not strong formal or institutional alternatives to digital lenders,” said the report.

Forty per cent of Kenyans interviewed in the report said they would borrow from relatives as their prime alternative to digital lenders compared to just 10 per cent who would opt for banks and Saccos.

M-Shwari is the most popular among five key digital lending platforms, influenced by its connection to the leading mobile service provider in the country (Safaricom) at 40 per cent score followed by Tala (36 per cent), Fuliza (30 per cent) Branch (23 per cent) and KCB-Mpesa at 22 per cent.

Tags: Branch International Kenyadigital banking in AfricaDigital banks in KenyaFeatured

STATE OF ECONOMY - GET THE REPORT

ASSESSING EAST AFRICA

Loading...

Wanjiku Njugunah

Wanjiku Njuguna is a Kenyan-based business reporter with experience of more than eight years.

Related Posts

Congo joins the EAC (www.theexchange.africa)
Business

What does it mean for regional trade, investment after DRC became EAC’s 7th Member State?

May 18, 2022
www.theexchange.africa
Business

Technology: Liquid Intelligent acquires Israeli tech firm to expand its digital solutions offering

May 9, 2022
www.theexchange.africa
Business

Kenya: President Kenyatta Increases Minimum Wage by 12 Per Cent

May 2, 2022
Next Post
African women in agriculture. AgTech businesses, blockchain could aid production of organic food in Africa. www.theexchange.africa

Living off the land in Africa digitally

africa's resilience to economic shocks

Africa's race for Foreign Direct Investment

Tanganda Tea Estates, Zimbabwe. www.theexchange.africa

Unpacking the Tanganda Tea Company in Zimbabwe

Please login to join discussion




This months edition

May Edition

Features

EdTech role in African development
Tech & Business

EdTech’s role in African development

by Kanyali Muthui
May 16, 2022
0

Due to the pandemic, the topic of innovation in education has never been more crucial.  While most developed countries moved...

Read more
investment in African science and technology
Tech & Business

Investing in Africa’s science and technology: Where are we now?

by Kanyali Muthui
May 16, 2022
0

The continent’s digital revolution can largely be driven by building the necessary skills for the short- and long-term future, and...

Read more
Fintech revolution in Africa
Tech & Business

The Fintech Revolution in Africa’s FX Markets

by Kanyali Muthui
May 11, 2022
0

With over 548 million registered mobile money users in sub-Saharan Africa, increased internet access and readily available mobile money solutions,...

Read more
www.theexchange.africa
Countries

US – Nigeria Trade Relations: An Overview

by Wanjiku Njugunah
May 2, 2022
0

Nigeria is currently the United States' 54th largest goods trading partner, with US$7.8 billion in total goods trade as of...

Read more
A previous conference for African Insurtech sector. The Insurtech boom is deepening insurance uptake in Africa. www.theexchange.africa
Tech & Business

Insurtech boom deepening the uptake of insurance in Africa

by june njoroge
May 2, 2022
0

Kenya-based Pula is another distinguished insurtech making waves in the continent. It provides small scale farmers with agricultural insurance and...

Read more

News

Banking
Industry & Trade
Investing
Money Deals
Regional Markets
Tech & Biz
Opinion

Countries

Kenya
Tanzania
Uganda
Burundi
Rwanda
Southern Africa
Ethiopia

More

My Account
Contact us
Advertise
About us
Help Center

Subscribers Center

E-paper
Premium Stories
Education Rates
Corporate Subscriptions
Weekely Newsletter

  • My account
  • About us
  • Advertise
  • Contact
  • Privacy Policy
  • Refund Policy – The Exchange
  • Sitemap

No Result
View All Result
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
  • Login
  • Sign Up
  • Cart

© 2021 The Exchange - Powered by MediapixManaged by Supported by Digihandler,

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In