With the growth in mobile money services, particularly those involved in money lending, telcos need a trusted fintech partner. Through business-to-business (B2B) partnerships, fintech service providers, such as the 4C Group, enable telcos to expand their portfolios without having to develop their own financial infrastructure.
Telcos can diversify their revenue streams by expanding into new areas, offering value-added services to their customers. These include money leading or credit and loan services.
Why is money lending the next step for fintech in SA?
Those living in remote areas in Africa often have poor access to banks. With mobile penetration blossoming in Africa, the need for traditional banking services has reduced. More individuals and small businesses have access to financial services through the telecommunications networks.
Cell phone users benefit from mobile wallet solutions and do not require a bank account. This opens up the doors for millions of Africans wishing to pay for goods and services using their phones. The next step for telcos is to include money lending services to ensure financial inclusion for more citizens.
The rapid growth of fintechs in Africa means that they constantly need to evolve to stay relevant and meet consumer needs. The 4C Group offers a secure and scalable fintech solution that supports mobile money lending. Our innovative technological tools provide a mobile money service that is secure and customisable.
Fintech solutions open up money lending in Africa
The 4C iNSight framework is a software interface between the merchant and the consumer. Our Payment Gateway facilitates quick and secure financial services. We assure regulatory compliance and revenue assurance.
The 4C iNSight software gives an automated assessment of the consumers’ lending and debt paying behaviour. It uses real-time data data analytics to analyse the consumers credit behaviour. Millions of South Africans do not have a credit score or bank account. In the past, this would have excluded them from most money lending services.
Through the iNSight software, the consumers’ management of debt can be analysed, including how regularly and responsibly they manage their payments. Automation is used to provide a risk score for each consumer, as well as predictive analysis of future behaviour. This allows telcos to manage their credits and loans to their customers in a secure and fair way.
Enabling money lending with fintech solutions
Telcos benefit from fintech solutions because they do not need to involve banks nor do they have to develop their own software. The customers benefit because there is no need for in-person consultations or a formal bank account. Traditionally, many consumers relied on informal loan sharks as a way to secure short term loans. These loan sharks generally offer exorbitant fees and take advantage of South Africa’s most vulnerable citizens.
Through fintech services, consumers can receive instant credit decisions and microloans. This could go a long way to helping somebody get out of a precarious situation, provide transport home or get access to a meal.
Small businesses can take out loans from between R20 000 and R500 000, with the loan decision being processed within 24 hours. This is a convenient solution for business owners who may need, for example, to cover shortfalls in wages or would like to invest in developing their companies further. Loan repayments can be agreed upon with the consumer and include daily, weekly or monthly repayments plans.
Promoting financial inclusion in South Africa
South Africa’s telecommunications operators are offering more financial services to their customers. There’s been a massive trend in local operators offering microloans or larger cash amounts to individuals and small businesses. South Africa’s underbanked consumers now have access to small scale loans through fintech services.
These types of microloan services have been highly successful in other African countries, including Tanzania and Kenya. They enable borrowers without a formal credit history to gain access to small loans. This creates financial inclusion, serving to uplift some of Africa’s poorest citizens.
Partner with 4C Group for money lending fintech solutions
Every 24 hours, our iNSight software and enterprise-grade databases process billions of individual money transactions. We provide technical support to ensure that our services are fully available and always-on. 4C is a trusted fintech partner for telcos in Africa wishing to grow their market share and offer money lending services to their consumers.
A key benefit of working with the 4C Group is that we offer financial integrity and revenue assurance. Our iNSight software provides digital protection, enabling fintechs to identify, track and tackle fraud.
We offer high levels of digital security to prevent business losses from scams, fraud or money laundering. With money lending services, cyber protection and revenue assurance is vital. We offer fintechs excellent visibility into what is happening with real-time monitoring and actionable business insight. For more information about our fintech solutions for money lending, please contact us today.
At 4C Group of Companies, we strive to effect operational changes and cost savings for customers through our iNSight product and associated services. This product’s main function is to re-purpose and deliver business-critical information to a variety of systems and stakeholders.
We specialise in information assurance, business assurance, FinTech solutions and a variety of business systems. For more insights into our products and services, check out our blog page or follow us on Facebook, LinkedIn and Twitter.