How Errandpay is Boosting Financial Inclusion in Sub-Saharan Africa by Powering Fintechs, MFBs and MFIs – TechEconomy.ng

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Many financial organizations believe that Fintechs, Microfinance Banks (MFBs) and Microfinance Institutions (MFIs) are seventh heaven in the global effort to reduce poverty in Sub-Saharan Africa.

Unfortunately, this impression is very far from reality.

Filtering through the World Bank Report 2021 on financial inclusion, digital payments and resilience in the era of COVID-19, it would be found that more than 65% of the region still has limited access to deposit and credit facilities provided by financial institutions.

Not only are these financial services essential for the growth of small and medium-sized enterprises (SMEs), but they are integral to the improvement of money markets and the social development of individuals.

Fintechs, MFIs, and MFBs need more technology-driven solutions, proper accounting and reporting mechanisms, clear credit policies, and better internal controls to deliver these life-changing services. Fortunately, Errandpay’s strong bank branch and mobile money models promise to enhance these solutions.

Errandpay is a financial technology company operating in Nigeria, Ghana, Kenya and Uganda, providing financial service providers with affordable agency banking applications and point-of-sale (PoS) terminals, among other innovative products for the real-time transaction processing.

The company’s agency banking solution is fully white-labeled and reduces key barriers in go-to-market strategies that banks face.

Banking stressors such as recruiting and managing developers, setting and meeting deadlines, projecting, gathering and aggregating vendors, negotiating with other banks, onboarding customers and documentation are eliminated. The time spent on these stressors is reduced from years, sometimes months, to days.

Agency banking, also known as branchless banking, generally allows banks to expand their branches, reach and customers by using authorized agents who can offer banking services such as deposit facilities and credit using authorized point-of-sale terminals.

A more detailed description; Aliyu, a Hausa retailer from northeast Nigeria, has been licensed to operate a PoS machine by a bank. Aliyu helps her family, neighbors and friends send, receive and withdraw money using her PoS machine. Thanks to Aliyu, the bank can reach more customers in indigenous areas. Aliyu can earn additional income through commissions from each transaction it processes on its PoS device.

As an agent, Aliyu is in the best position to help his bank make lending decisions because he knows his customers best. He knows their repayment capacity, financial stability, credit rating, etc. This information can help his bank maintain the quality of its assets.

Errandpay is passionate about promoting financial inclusion by ensuring that its API can be easily integrated by any financial institution planning to leverage the platform to accelerate their expansion plans across the continent.

Errand pay logo

In a recent conversation with Paul Dureke, Errandpay’s Chief Technology Officer explained that the platform helps facilitate operations for other financial institutions:

“Building technology is difficult and time-consuming, so we’ve made developer-friendly and easy-to-integrate APIs available to all of our partners. From white label services to aggregation of major services and the ability to seamlessly integrate with any core banking platform in Africa, Errandpay’s features are fully customizable to any partner’s needs. potential. Fintechs, MFBs and MFIs can worry less about building technologies and focus more on strengthening their structures through the platform.”

Errandpay’s vision is to turn authorized agents into human MFBs. However, this dream can only be realized through more partnerships.

“As we have rightly seen over the past 10 years in the Sub-Saharan Africa region, the fintech revolution has been primarily driven by collaboration. One of ErrandPay’s main strategies is working with microfinance banks, financial institutions, aggregators, agents, fintech companies and more. We have designed our technology for ambitious banks, organizations, founders and CEOs looking to scale very quickly,” said Paul Dureke.

Since March 2022, Errandpay’s products have dramatically improved the financial lives of many people through its 15 special fintech partners across Africa.

The platform can facilitate loans, insurance and investment products, credit card payments, registration for different services, etc., while its partners avoid additional fees for using the platform.

Integration on Errandpay is free

The platform is accessible on errandpay.com and/or its app on iOS and Android devices, while its technical support team can be contacted at [email protected].

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