Nigeria’s Interswitch partners Ferratum to float micro loan unit

Ferratum

Interswitch will be delving into microcredit business as it has just partnered Ferratum to offer the service to the former’s customers in Lagos.

Ferratum said in a statement earlier today that Interswitch has partnered with five leading banks and three innovative credit providers, including Ferratum. The platform offers proprietary credit analysis, risk scoring and management technology that members of the partnership can use to access customers who do transactions on the Interswitch network.

Ferratum brings its strengths in predictive big data analytics and automated credit risk scoring to this partnership, while Interswitch will handle customer support and marketing of Ferratum Microloans through its various sales channels and platforms.

Ferratum will initially offer Microloan amounts of between NGN 1,000 and NGN 10,000 (approximately EUR 2.70 to EUR 27.00) to customers of Interswitch who are resident in Lagos. The National Population of Nigeria estimated the population of Lagos to be 21 million in 2016, which makes it the largest city in Africa. A testament to Nigeria’s potential was its selection by Goldman Sachs as one of the “Next 11” countries, which will have an impact on the global economy.

Ferratum Group founder and CEO, Jorma Jokela, commented: “Entering the African market is an important milestone in our international growth strategy. Interswitch is an established and well respected financial company, leading the way in creating innovative ways to transact using digital technologies in Africa. This partnership is a further step towards Ferratum providing accessible credit globally for any individuals or businesses who are underserved by traditional banks and mainstream finance.

He added that “For the expansion of Ferratum into the African continent, the shared commitment of Ferratum and Interswitch
to promote financial inclusion makes this partnership all the more compelling.“

Ferratum Group is an international provider of consumer and small business loans, distributed and managed by mobile devices. Founded in 2005 and headquartered in Helsinki, Finland, Ferratum has expanded rapidly to operate in 25 countries.

Ferratum’s customers utilize digital media to apply for consumer credit in amounts up to EUR 20,000 and small businesses instalment loans up to EUR 100,000 with a term of six to twelve months. As a pioneer in digital lending and mobile financial services technology, Ferratum is at the forefront of the digital banking revolution.

Ferratum Mobile Bank, launched in 2016, is an innovative mobile banking platform offering a range of banking services, including real time digital payments and transfers, within a single app.

It is currently available in five European markets. Led by its founder, Jorma Jokela, Ferratum has more than 1.7 million active and former customers who have been granted one or more loans in the past (as at June 30, 2017). Ferratum Group is listed on the Prime Standard of Frankfurt Stock Exchange under symbol ‘FRU.’

Leave a Reply

Your email address will not be published. Required fields are marked *