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Paylater Lending app Eyes Full-Service Digital Bank

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Paylater, Nigerian retail lending startup, is working on a plan to transition to a full service digital bank after securing a $5 million debt facility from Nairobi-based Lendable, technology-enabled funding provider to African consumer and small business lenders.

 

qz.com reported that Paylater is looking to deploy new products while transitioning to a digital bank.

 

Since launching in 2016, the Paylater mobile app was downloaded by over 1 million users and disbursed loans of over N13 billion ($36 million).

 

But now, the company is looking to get into the unbanked population of Nigeria and provide banking services for them.

 

The startup will be announcing a name change to fit its new business in the first week in April.

 

In Nigeria, there is an estimated 60% of adults without a bank account. Nigeria and six other countries are home to nearly half of the 1.7 billion people without bank accounts, according to the World Bank Global Findex Database report.

 

Paylater is a unit of OneFi which started in 2011 as One Credit, which provided loans to middle class salary earners, using a paper-based application process that required supporting documentation.

 

But that restricted the scope of the service in a country where more than 60% of working adults are in the informal sector and therefore are not paid documented monthly salaries or possessed formal documentation.

 

The introduction of a bank verification number (BVN) by Nigeria’s central bank in 2016 enabled young companies like One Credit to launch more flexible, digital lending services available to more people including Paylater.

 

The BVN is the first true record of Nigerians employing biometric security and linking all back accounts owned by a single user.

 

“As we are pushing on with our web and digital platforms, we also want to reach out to a segment in the economy that is always talked about but not really catered to,” said Chijoke Dozie, who co-founded OneFi with his brother Ngozi.

 

In a few months, OneFi will also be launching some of its services deploying USSD mobile technology found in simple feature phones rather than the more expensive smartphones.

 

The idea is to “onboard people that are not using smartphones and we are banking on our reputation as loan providers to reach them.”

 

The strides that digital lenders have made have made traditional banks offer retail loans to customers. But in the past, this was not the case. Banks in Nigeria have a poor reputation for providing credit. Customers of commercial banks are burdened with paper applications and high interest rates coupled with the need to produce collateral.

 

News of Paylater’s transition to a digital bank comes in the week that Diamond Bank, which was controlled by the Dozie family, is being  merged with Access Bank. Diamond Bank, which was most recently run by another Dozie brother, Uzoma, had struggled over the last couple of years. Last October, the chairman and three directors of the bank resigned following a protracted dispute involving a major investor.

 

OneFi’s Dozie believes that deal with Lendable is international validation of the progress they have made and their preparedness for the next step. This line of financing provides the opportunity to transition into a full-service digital bank. The company will also be announcing a partnership with Visa—a move to provide credit via QR codes in supermarkets and clinics.

 

Daniel Goldfarb, the co founder of Lendable, which is backed by Omidyar Investments, said his company is looking to increase access to finance in frontier markets and wants to do this through non-banking lenders. “Paylater has shown that they know their market intimately, while having impressive tech and a platform that is scalable. We are expecting 75% growth within nine months.”

 

 


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Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

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Expert Urges FG to Harmonise NIN, BVN to Tackle Crimes

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Noble Ajuonu, head, Sydani Technologies Ltd., has urged the Federal Government to harmonise National Identification Number (NIN) and Bank Verification Number (BVN) to tackle crimes and insecurity in the country.

Expert Urges FG to Harmonise NIN, BVN to Tackle Crimes

Ajuonu made the call at a media roundtable, organised by Sydani Group in Abuja.

The News Agency of Nigeria (NAN) reports that the roundtable focuses on driving sustainability through a comprehensive analysis of Nigeria’s key development areas.

Ajuonu said that Nigeria could overcome its security challenges and pave the way for a safer, more secure future for all Nigerians by embracing technology and implementing practical solutions,

“We need to harmonise data, prioritise seamless integration of databases like NIN, BVN, and security agency records, establish clear protocols for data sharing and access, with robust safeguards against misuse,’’ expert said.

According to him, the unified data pool will empower intelligence gathering and targeted operations.

He also called for investments in smart surveillance, intelligent video analytics software, training of personnel in data analysis, interpretation of data in real-time to combat crimes.

“There is need to implement a legal framework for call interception in criminal investigations, with strict oversight to prevent abuse, encourage community cohesion, training of tech savvy security personnel with tech-enabled tools.’’

Ajuonu also urged the government to address infrastructure deficit in technology, saying that technology was all encompassing to address insecurity.

“According to the National Identity Management Commission (NIMC), as of December 2023, only 104.2 million Nigerians had been enrolled for the National Identity Number (NIN).’’

Ajuonu added that over 122.2 million citizens left uncaptured for NIN were people in rural areas where enrolment centres, digital services were limited.

“Most crimes are being perpetuated from rural communities and this lack of comprehensive identification creates a gap where elements not captured in the national database can constitute public nuisance, crimes.

“There is the inadequacy in the integration of NIN, BVN and Voters Identification Number (VIN).

“Advanced call interception and analysis tools, used successfully in other countries, could provide invaluable insights into criminal networks and operations but infrastructure is lacking,’’ he said.

Also, Mr Godfrey Petgrave, the Agricultural Expert, Sydani Group, called for empowerment of smallholder farmers with access to finance and training to enhance productivity.

According to Petgrave, Nigeria requires policy reform and institutional strengthening to improve agricultural practices and embrace digital agriculture solutions to address food insecurity.

Mr Akolade Jimoh, another expert of the group on health, advocated for expanded community-based health insurance programmes for rural and underserved areas.

Jimoh added that the country needed to encourage Public Private Partnership to revolutionise products design and quality improvement on health services.


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Konga launches Infinix Brand Week with Incredible Deals

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Konga, Nigeria’s leading composite e-commerce group, is thrilled to announce the launch of amazing deals at its Infinix Brand Week. Infinix, a leading global smartphone brand known for its innovative products and cutting-edge technology promises exclusive discounts and special offers on select smartphones, marking an exciting milestone in the realm of online shopping.

Shoppers can expect nothing short of extraordinary deals on a wide range of Infinix products, all available exclusively on the Konga online platform. With discounts of up to 30% off, this partnership between Konga and Infinix aims to redefine the shopping experience for tech enthusiasts across Nigeria.

Konga Brand Week has become synonymous with excitement and unbeatable deals, and this year’s edition is no exception. In addition to exclusive discounts on Infinix smartphones, shoppers can explore a diverse array of products across various categories, including electronics, fashion, home essentials, and more.

“At Konga, we are dedicated to providing our customers with the best shopping experience possible,” said Rita Ohaedoghasi, VP Marketing at Konga. “The Infinix Week during Konga Brand Week allows us to continue delivering on that promise by offering incredible discounts and special offers on some of the most sought-after smartphones in the market.”

To stay updated on the latest developments and exclusive deals during Konga Brand Week, shoppers are encouraged to connect with Konga across all platforms, including social media and the Konga website. Don’t miss out on this opportunity to score big savings and elevate your tech game with Infinix and Konga.


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Study Reveals Software Programmers to make Full Use of AI Code Assistants

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Gartner predicts that by 2028, 75 percent of enterprise software engineers will use Artificial Intelligence (AI) code assistants, up from less than 10 percent, currently.

According to a Gartner poll of 598 global respondents conducted in the third quarter of 2023, 63 percent of organisations are now testing, deploying, or have previously implemented AI code assistants.

AI code assistants provide for more capabilities than only code development and completion, notes the research firm.

According to Gartner, the use of AI code assistants can lead to higher work satisfaction and retention, resulting in lower turnover costs.

Philip Walsh, senior principal analyst at Gartner, comments: “Software engineering leaders must determine ROI and build a business case as they scale their rollouts of AI code assistants.

“However, traditional ROI frameworks steer engineering leaders toward metrics centred on cost reduction. This narrow perspective fails to capture the full value of AI code assistants.”

Gartner notes that software engineering leaders must “reframe the ROI conversation from cost reduction to value generations”.

Walsh adds: “Calculating time savings on code generation is a good place to begin building a more robust value story. To convey the full enterprise value story for AI code assistants, software engineering leaders should connect value enablers to impacts, and then analyse the overall return to the organisation.”

 


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