…revolutionising the fintech landscape, one loan at a time
Small and medium-sized enterprises (SMEs) are the Ghanaian economy’s backbone, accounting for over 90 percent of businesses in the country. However, SMEs often face challenges in accessing credit – which can limit their growth and development.
In recent years, there has been a growing effort to provide small loans to SMEs in Ghana. This has been done through a variety of initiatives including government-backed programmes, microfinance institutions, and commercial banks. There is evidence that small loans can have a positive impact on SMEs. Multiple studies have found that SMEs which received loans were more likely to increase their sales, profits and employment.
However, there are also some challenges associated with small loans. For example, SMEs may not be able to afford the high-interest rates that are often charged on these loans. Additionally, SMEs may not have the collateral or credit history required to secure a loan.
Despite these challenges, small loans can be a valuable tool for supporting the growth of SMEs in Ghana. By providing access to credit, small loans can help SMEs to invest in new equipment, expand their operations and create jobs.
In the bustling financial technology (fintech) ecosystem of Ghana, one company stands out as a true pioneer in the micro-lending space. Fido, with its advanced technology and commitment to financial inclusion, has been empowering the underbanked and underserved population since 2014 through its revolutionary Fido mobile App.
Leveraging cutting-edge technology for financial inclusion
What sets Fido apart from others in the fintech market is its unwavering focus on leveraging advanced technology, particularly machine learning and artificial intelligence. Through these powerful tools, Fido has been able to create risk models that analyse and approve credit requests with remarkable accuracy and efficiency.
“Our vision is to empower individuals and entrepreneurs in Ghana to seize opportunities and achieve their financial goals,” says Sebastian Quansah, Managing Director at Fido. Their use of machine learning and AI has allowed them to extend approximately over 3 million credit facilities to about 600k unique customers, bridging the gap left by traditional financial institutions.
Fido’s commitment to technological advancement has not only allowed them to serve the underbanked but also innovate and stay ahead of the competition. Their intuitive mobile App, designed with the user experience in mind, has made accessing credit quick and easy, revolutionising the lending landscape in Ghana.
Responsible lending with strong security measures
As the fintech industry grapples with concerns over limited Know Your Customer (KYC) data and security breaches, Fido has taken proactive measures to ensure responsible lending. The company’s robust risk algorithms, fuelled by artificial intelligence, assess creditworthiness even with the limited data available. They provide applicants with a transparent ‘Fido Score’, which not only guides them to improve their creditworthiness but also unlocks better credit terms.
“We continuously refine and update our risk assessment models to stay ahead of evolving risks and market dynamics, ensuring a responsible and sustainable lending approach,” adds Mr. Quansah.
In addition to robust risk assessment, Fido employs state-of-the-art security protocols to safeguard customer data. Their commitment to data protection is evident through obtaining ISO27001 certification, reassuring customers of industry-best standards in information security and data privacy. Fido is also certified by the Data Protection Commission.
Building strong collaborations
Fido firmly believes in the power of collaboration, and its strategic partnerships with mobile money wallet providers and telecom operators have facilitated seamless transactions for their customers. This integration with existing financial services has expanded access to credit for thousands of Ghanaians.
In addition to the current partnerships, Fido is actively exploring collaborations with financial institutions, technology companies and other fintech players to expand their reach and offerings. These partnerships will not only enhance the value they offer to customers, but also contribute to overall growth of the fintech ecosystem.
Empowering economic growth and development
Fido’s impact on the local economy cannot be overstated. By providing credit access to the underbanked population, the company enables individuals to invest in their businesses, meet urgent financial needs and seize economic opportunities that were previously out of reach. This in turn leads to job creation, economic growth and reduced inequalities. Fido’s commitment to gender equality is also noteworthy, as a significant portion of its clients includes women entrepreneurs.
Beyond economic growth, Fido has contributed significantly to achieving several United Nations Sustainable Development Goals (SDGs) – including SDG 1 (No Poverty), SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure) and SDG 10 (Reduced Inequalities). By empowering the underprivileged and promoting financial literacy, Fido’s endeavours have far-reaching positive impacts on society.
Guaranteeing legitimacy and promoting financial literacy
Ensuring legitimacy is paramount in the fintech space, especially with the rise of illegal lending apps. Fido leaves no room for doubt by complying with all relevant regulatory requirements and obtaining ISO27001 certification, assuring customers of industry-best standards in information security and data privacy.
Furthermore, Fido actively educates its customers on financial literacy through its ‘Fido Money Matters’ programme, empowering them to make informed financial decisions and avoid potential scams. By building a financially literate customer base, Fido strengthens the overall financial ecosystem and fosters responsible financial practices.
A multi-faceted approach to tackling illegal lending apps
Fido recognises that addressing the challenge of illegal lending apps requires a multi-faceted approach. Collaboration between fintech companies, regulatory bodies and law enforcement agencies is essential. Fido has been engaging in public awareness campaigns to educate users about the risks of using unlicenced lending platforms and how to identify rogue lending apps.
It advocates for a united effort to tackle this issue, with fintech companies prioritising compliance and customer protection while authorities enhance monitoring and enforcement efforts to identify and shut down illegal lending apps through collaboration.
Future of fintech in Ghana – a tech-driven, inclusive landscape
Looking ahead, Fido believes that advancements in technology – such as mobile money interoperability and AI – will play a defining role in revolutionising the fintech landscape of Ghana. These advancements will encourage a cashless economy and improve identity verification; crucial elements in fostering financial inclusion.
Another key factor in shaping the future of fintech in Ghana is the partnerships between fintech companies and traditional financial institutions like banks and insurance companies. Such partnerships will lead to greater integration and accessibility of financial services, further boosting financial inclusion.
An improved and favourable regulatory framework will also play a vital role in driving fintech growth and opening more opportunities for financial services. Fido continues to support and advocate for regulations that strike a balance between promoting financial inclusion and protecting consumers.
Fido’s roadmap – a commitment to empowerment
Fido’s plans and objectives revolve around strategic partnerships. They aim to collaborate with other institutions to offer a comprehensive suite of financial services to Ghanaians, further contributing to growth of the fintech ecosystem. Exciting developments are on the horizon, promising even greater value for customers.
Expect Fido to lead the way
In the dynamic fintech landscape of Ghana, Fido will remain at the forefront of innovation, championing financial inclusion and empowering the underbanked. Watch this space for more exciting updates from Fido as they continue their mission to build a financially inclusive and prosperous Ghana.
About Fido
Fido is a financial technology company that empowers individuals and entrepreneurs to take control of their financial future. We believe that access to instant and easily accessible financial services should be available to everyone, regardless of their income level or location. Our goal is to leverage technology to promote financial inclusion in Africa through innovative digital financial solutions that meet the diverse needs of our customers.
Since our establishment in 2014, we have been at the forefront of providing accessible financial services to the underbanked population in Ghana. Thanks to our flagship product, Fido Loans – which is accessible through the Fido App on Google Play and the iOS App Store, we are helping individuals and small business owners across the country gain timely access to credit. We are proud to have disbursed over 2.5 million loans to Ghanaians, helping them achieve their financial goals and improve their lives.
As we continue to grow, we plan to provide a comprehensive suite of financial services that meet the diverse needs of our customers, including savings and bill payment solutions, while expanding our services to other markets in Africa including Uganda and South Africa.
We believe in building long-term relationships with our customers based on trust and transparency, and are committed to earning and maintaining their trust every day. Our experienced and knowledgeable team is dedicated to providing an exceptional customer experience, ensuring that our clients always have a positive and seamless experience.
Contact details
Email: [email protected]
Phone: 0596922420
Website: www.fido.money
Facebook: www.facebook.com/fidocredit
Twitter: https://twitter.com/fidocredit
IG: www.instagram.com/fidocredit_official/
YT: www.youtube.com/@fidomoney
Sebastian Quansah, Managing Director-Fido
