The world of financial technology has a lot to offer low- and middle-income countries. Financial technology is essential to accelerate poverty reduction and enhance the growth and development of developing nations. One such innovation in financial technology is a mobile lending app called Branch. The Branch app has tapped into Africa’s emerging markets and the results are inspiring.

The Branch App

Branch offers mobile financial services that are accessible via smartphone. The advantage of this technology is that the app bypasses some of the restrictions that come with traditional institutions. Branch’s goal is to make money lending and credit building opportunities accessible to all people, which the company believes will “open new channels for personal empowerment and financial growth.”

Currently, Branch serves Kenya, Tanzania, Nigeria and India. Its user demographic targets members of the middle class in areas with emerging markets. Branch recognizes that people in these areas are often underserved and is dedicated to servicing them with customer-first products.

The People Behind the Project

Matt Flannery and Daniel Jung co-founded Branch in 2015. Flannery, the CEO, previously developed and led Kiva, a nonprofit microfinancing company. Flannery then set out to create a “branchless bank” for Africa, resulting in a financial app that would provide accessible services to low- and middle-income customers. Flannery is a Skoll Awardee and Ashoka Fellow, making him a highly acclaimed social entrepreneur. He was also part of Fortune magazine’s “Top 40 under 40” list in 2009.

Recently, in March 2021, Branch added a new member to its team: Dayo Ademola, who will oversee Branch’s Nigeria operations. Ademola has more than 15 years of experience working with consumer-centric companies and banking institutions. She has former experience with global fintech and much of her efforts in the field have been toward improving financial inclusion in Nigeria. Ademola is particularly excited about continuing this mission and working with Branch to help Nigerians simplify their relationship with finances. Fortunately, Branch provides a successful avenue to do that.

Branch’s Success

Since its launch in 2015, Branch has made significant advancements toward improving banking accessibility in Africa. Since its establishment, Branch has facilitated $350 million in loans. This is a significant accomplishment since Branch operates in countries with new markets and limited resources. Fintech investments in Nigeria have grown nearly 200% in the past three years, showing that these emerging markets are increasingly recognized as valuable.

Flannery and others see the African markets for the significant opportunities they present. Fintechs, especially those with a background in social entrepreneurship, have the power to transform African markets and improve social and economic stability in these countries. As it stands, Branch has more than four million customers and has issued more than 21 million loans in the countries it operates in. If the  Branch app continues to spread across Africa and other developing nations, Branch has the potential to vastly improve financial inclusivity and lift millions of people out of poverty by providing financial solutions that cater to those with minimal resources.

– Samantha Silveira
Photo: Flickr