Innovation

Consumer Lending
Giorgio Pezzani
Table of contents
01 Introduction 04 America (US)

02 Geographical Division 05 Asia

03 Africa 06 Europe
 01
Introduction
 Effects of Fintech
• The entire financial landscape has recently changed
driven by advances in financial technology.

• Fintech lenders have grown and taken away market

shares from the traditional banking sector.

• The use of alternative data (to weigh lending risk) and

complex modeling by fintech lenders have allowed
them to evaluate credit risks more accurately and to
expand credit access to those “credit invisible”
consumers, without taking on excessive risks.
 Benefits

Effortless
Consumers can access loans in
seconds with a few taps on
their smartphones.
Time-Saving
Reduces the time and the
physical barriers to traditional
lending.
Straightforwar
d
Borrowers no longer need a
decade of on-time credit
card payments to qualify for
a loan.
 Different Business Models
P2P Lending Mortgages

Investor Loan Business Loan

 In P2P lending, a fintech company connects people or
Peer-to-Peer Lending businesses with investors who want to lend them
money. In exchange for making the connection, they
collect a small fee.

Rather than providing loans themselves, some fintech

companies source loans and sell them to investors.
Investor Loans For example, instead of earning a commission on
loans, it sources customers who want to take out a
mortgage, qualifies them, then sells the mortgages to
banks like Wells Fargo or institutions like Fannie
Mae. 
 Some fintech companies do provide actual loans.
Mortgages What differentiates them from typical financial
institutions is the use of technology to improve the
lending process.

Some fintech lending companies work to help small

businesses access the capital they need to grow. This
Business Loans is crucial, as many small businesses are not eligible
for credit from traditional institutions due to a higher
perceived risk.  
02 Geographical
Division
• The idea is to separate the work into geographical
areas and dive into different companies in each of
these areas.

• Some areas have more fintech companies in consumer

lending, such as Europe & North America.

• Other areas, especially Africa, has massive potential.

This is why more and more consumer lending
companies are offering services in African countries.
Africa 03
 Problems To Solve

Availability Service
People in African countries have little or
A quick registration and an easy way to
no access to credit. For example, credit
request loan must be essential for new
card penetration in Egypt is extremely
consumers.
low, with just over 4%.
 Blnk - Egypt
• Founded in October 2021. Recently raised $32 million between equity
and debt.

• It plans to “accelerate financial inclusion within underserved

communities across the country” and support its “AI-
powered” lending infrastructure.

• Customers who use Blnk at the point of sale need a National ID for
starters, after which they can get financing in three minutes.

• The digital lending platform partners with Egyptian merchants,

allowing them to underwrite customers at the point of sale and provide
them with finance to purchase items such as electronics, furniture and
automotive services via 6-36 month installments.
“By being there at the point of sale, we help increase
conversion rates and provide affordability products to
significantly underserved populations. We’re heavily
focused on financial inclusion, especially on how to
underwrite people who don’t have a credit history.”

—Amr Sultan, CEO and Co-Founder of Blnk


Risk-Scoring Model
Assesses the customers’
riskiness and ability to service
their debts.
Loans
Disbursed over $20 million via a network
of more than 300 merchants to over
60,000 customers.
Interest Rate
Average monthly interest rate
of 2.6%.
Blnk
Financial Inclusion
Blnk is an AI-enabled consumer finance
platform, driving financial inclusion in the
North Africa through innovative technology
solutions.
Facts/Data $32 million raised
$12.5 million pre-seed and seed equity
rounds; $11.2 million debt financing;
$8.3 million securitized bond issuance
Application
Customers can apply directly
where they shop, with no need
to step outside.
 Flutterwave - Nigeria
• Founded in 2016. Raised a total of US$175 million in Series C
funding. Making it the largest funding for an African tech company at
the time. It is one of the biggest African unicorns (company valued at
more than $1 billion).

• Offers Nigerian businesses quick access to flexible loans with no

collateral required. After business verification, the money loan is sent
in less than 2 business days.

• It also enables businesses across the world to expand their operations

in Africa and other emerging markets through a platform that enables
cross-border transactions via one API.
America 04
 OppFi – Chicago, US

• Founded in 2009. Operates a fintech lending platform called

OppLoans that helps people from a multitude of backgrounds to
acquire the funding they need to pay off debts, open businesses and
get ahead in life.

• It offers an online simplified application process. If approved, clients

receive money as soon as next business day with no origination fees.
or prepayment penalties.

• OppLoans doesn’t base funding decisions exclusively on FICO credit

scores or credit history, something that most US traditional banks do.
05
Asia
 WeLab – Hong Kong
• Founded in 2013. Revolutionized consumer lending in Asia by
delivering seamless, purely online lending experiences accessible 24/7
to underserved customers.

• Operates Asian market-leading online consumer credit platform across

3 markets – WeLend in Hong Kong; WeLab Digital in Mainland
China; Maucash in Indonesia.

• More than 50 million users have utilized these platforms.

• Created a system named WeDefend. It automatically assesses the

degree of risk with the breakthrough of technology to analyse big data
in real time, which allows WeLab to quote instantly online.