The surge of companies operating in Nigeria’s digital lending sector has drawn attention to concerning trends like aggressive tactics for loan recovery such as harassment and defamation.
This has led the Federal Competition and Consumer Protection Commission (FCCPC) to collaborate with other regulatory bodies in crafting a regulatory framework to address these issues. According to local reports, the commission has approved over 260 digital lenders that have gone through the registration process.
REGULATION | Nigeria Registers and Approves 211 Loan Apps and Delists 45 from the Google Play Store
The necessity for registration of loan apps, including the 211 approved by the Federal Competition and Consumer Protection Commission (FCCPC), is driven by concerns about the… pic.twitter.com/xkR7Yg8cWE
— BitKE (@BitcoinKE) November 17, 2023
In this article, we explore registered lending platforms, based on their registration status and popularity on Google Playstore (as of April 2024).
1.) Branch
Branch International started in Kenya in 2015, before entering Nigeria as a lending app in 2017. Through the app, users can get instant loans up to ₦1,000,000 and enjoy investment yields of up to 10% and 15% per annum.
Number of Downloads: 10 Million+, Rating: 4.5
Branch International Raises Kshs. 500M and Welcomes Discussions on Government Regulation on Digital Lending in Kenya: https://t.co/9PG6uo2cwn @Branch_Co @CBKKenya @DigitalLenders
— BitKE (@BitcoinKE) July 29, 2019
2.) FairMoney
FairMoney operates as a licensed microfinance bank under the regulation of the Central Bank of Nigeria (CBN). Positioned as a digital bank specializing in lending, FairMoney offers instant loans of up to one million naira, alongside providing bank account services and issuing debit cards.
The company boasts a significant volume of loan processing, with over 10,000 loans approved daily, equating to one loan disbursed every eight seconds.
The mobile app originally launched as a digital lender in Nigeria six years ago. Since then, it has added other financial services, such as debit cards, transfers and payments. It says that it has over six million retail customers.
Number of Downloads: 10 Million+, Rating: 4.2
3.) Okash
Okash is Opay’s lending service arm. Both products are owned by Opera, the Norway-based software company. The mobile-based lending platform began operations in Nigeria in 2018.
According to Okash, to be eligible for a loan all an individual needs is to be 20-55 years old, an Android device, a data connection, a means of identification, as well as a valid bank account and card.
Number of Downloads: 5 Million+, Rating: 4.3
FINTECH AFRICA | Nigerian Fintech, Opay, Valuation Increases By 30% After 4x User Growth and 60% Revenue Increase Since Series C Round in 2021
This comes as the company enjoyed a good 2023 when, due to shortage of hard currency notes, Nigerians turned to fintech applications… pic.twitter.com/iGCFAHeso0
— BitKE (@BitcoinKE) June 26, 2024
4.) Kuda
Kuda, also known as Kuda Technologies, is a fintech company operating with a microfinance banking license from the Central Bank of Nigeria. The platform gives overdrafts, and users are eligible to take an overdraft if they become regular users of the Kuda account.
Nigerian citizens above the age of 16 are allowed to register on the platform.
Number of Downloads: 5 Million+, Rating: 4.3
Nigerian Digital Bank, Kuda, Hits 1 Million Android App Downloads: https://t.co/9xIRSShyBj @kudabank
— BitKE (@BitcoinKE) February 22, 2021
5.) Palm Credit
PalmCredit is defined as a virtual credit card that makes it easy for you to access a loan anytime and anywhere. Palmcredit offers loans of up to ₦100,000 within minutes on your mobile phone.
Through Palm credit loan app (owned by Newedge Finance Limited) users can get loans ranging from ₦2,500 to ₦100,000 with loan term durations of 12 – 26 weeks.
Number of Downloads: 5 Million+, Rating: 4.2
6.) QuickCheck
Quickcheck is a Nigerian Fintech company founded in 2017 by Fabiano Di Tomaso. It provides 24/7 loans to underserved Nigerian consumers and micro businesses through a mobile application.
Number of Downloads: 1 Million+, Rating: 4.5
7.) Carbon
Carbon is a Microfinance Bank licensed by the Central Bank of Nigeria (CBN) with deposits insured by the Nigerian Deposit Insurance Corporation (NDIC).
The platform boasts a better ecosystem of services, including outstanding customer support, the best pricing on banking transactions, the highest savings interest rates, and attractive credit rates.
Number of Downloads: 1 Million+, Rating: 4.3
FINTECH AFRICA | Carbon CEO Announces Shut-Down of Debit Card Operations in Nigeria
“When I take a step back with the benefit of hindsight (and a card operation bill denominated in USD $), I question why practically all neobanks are pushing cards or even getting into it.… pic.twitter.com/n8MkuHZxN4
— BitKE (@BitcoinKE) June 28, 2024
8.) RenMoney
Renmoney was founded in 2012 by Stephen Jennings. The company operates on a microfinance banking licence in Nigeria, offering three types of loans:
Small loans between N5000, N100,000
Medium loans between N25,000 and N3,000,00
Big loans up to N6,000,000
Number of Downloads: 1 Million+, Rating: 4.1
9.) Umba
Founded in 2019, Umba is described as a credit-led digital bank providing payroll and financial services to customers in Nigeria and Kenya.
It provides banking services such as loans, current accounts, savings accounts, fixed deposit accounts and bill payments to customers in Nigeria and Kenya.
The fintech has provided over 144k loans in its history.
Number of Downloads: 1 Million+, Rating: 3.6
Nigeria’s Umba Begins Operations in Kenya Making it the Second Licensed Digital Bank in Kenya
Umba enters Kenya after buying a controlling stake in Daraja Microfinance Bank authoritizing it to provide complete banking solutions in Kenyahttps://t.co/TALCkSQxj8
— BitKE (@BitcoinKE) February 28, 2023
10.) Aella Credit
Aella Credit was the first lending company in Africa admitted into Y combinator in 2017, and launched the B2C loans under Aella Credit.
Aella Credit started in 2015 and was founded by Akin Jones and Wale Akanbi. The YC backed startup is based in Lagos, Nigeria.
Number of Downloads: 1 Million+, Rating: 3.2
MILESTONE | Aella Credit, Africa’s First Lending Fintech to Enter Y Combinator, Becomes a Micro-Finance Bank
The fintech company serves over 2 million users in Nigeria. In 2020, as reported by BitKE, Aella raised $10 million in order to expand across Africa and build its… pic.twitter.com/CFSdi3z84w
— BitKE (@BitcoinKE) April 29, 2024
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