By Chisom Nwatu
Yabx, a Netherlands-headquartered fintech venture, has launched operations in Nigeria to democratise credit across the country with its digital lending offerings, which will further amplify its local operations in the country to capitalise on investments.
Yabx aims to bridge the gap between the new-to-credit segments and the banks in Nigeria at scale and introduce new-age fintech products and solutions in the high-demand markets of the country.
According to a World Bank report, the private credit bureau coverage in Nigeria was 13.9 percent in 2019. The numbers must have improved post-pandemic but there is still a long way to go.
Yabx has partnered with several African banks to create large, scalable and profitable digital lending portfolios by leveraging its fintech platform.
In Nigeria, where banks generally have faced challenges in underwriting their captive base optimally, Yabx will not only help banks to widen the horizon of services they offer to their captive base but also allow them to launch new and innovative products like Buy Now Pay Later, Personal Loans, Payday loans, MSME loans, etc.
Rajat Dayal, CEO & founder of Yabx, said whereas digital financial services have catalysed financial inclusion, access to financial services and credit remains an obstacle in countries like Nigeria.
“Without available credit services, small farmers, SME owners, and the new-to-credit segments face difficulty in obtaining loans to make profitable investments or pay off debts,” Dayal said.
“Today, banks and financial institutions in Nigeria are more than keen to partner with us and launch new and innovative products for new-to-credit segment. Our platform doesn’t only increase the reach of such banks but also helps them play a major role in creating a global credit score which will eventually help the new-to-credit segments in the country build a life without any external aid,” he added.
Yabx’s growth and innovation have also been validated at the most reputed global platforms ranging from the United Nations Capital Development Fund (UNCDF) to being recognised as the “LendTech of the Year” at the Asia Fintech Awards 2022.
The Fintech start-up also won the “Best BNPL Solutions Award” at the recently concluded Global Fintech Fest 2022. With such global recognition and presence already in place, Yabx is set to accelerate its mission in the Nigerian market to open up corners of opportunities that didn’t exist earlier.
Yabx uses Big Data Analytics and AI/ML algorithms on large volumes of alternate data to create a detailed financial identity of customers and help banks underwrite them over Yabx Loan origination and Lifecycle Management System. This customer origination and servicing can be done on various channels like the bank’s own digital banking app, USSD channel, website, or even as embedded options in third-party apps.