Digital Banking for Africans being carefully crafted by Affinity Africa, following the example set by Nubank.
Affinity Africa: A Digital Bank Revolutionizing Financial Inclusion in Ghana
Affinity Africa, a digital bank based in Ghana, has made significant strides in the financial sector, leveraging its roots in microfinance to transform into a full-fledged digital banking platform. This transition, marked by the issuance of the first digital banking license in Ghana in 12 years by the Bank of Ghana, signifies a strategic shift towards broader digital banking services aimed at promoting financial inclusion [1].
The bank has experienced rapid growth, amassing over 90,000 customers since its launch in 2022 [1]. This growth is backed by substantial investment, with Affinity Africa raising $8 million from German and UK investors such as Grazia Equity and BACKED VC in 2024 [3]. This investment underscores international confidence in the bank's business model and growth potential.
Affinity Africa's platform caters to a diverse user base, including salaried workers and informal traders. The bank has developed its own credit scoring engine, based on user behavior on its platform, rather than relying on third-party data sources [2]. This approach allows users to begin building their credit score from day one, with access to small loans (GHC 100) after meeting internal benchmarks within 30 days.
The bank offers a range of services, including savings, payments, loans, remittances, mortgages, and long-term business capital, all accessible online [2]. Affinity Africa's focus for this year is Business Banking, aiming to pilot services for micro and small businesses [4].
With its success in Ghana, Affinity Africa has ambitious plans for cross-border expansion. The bank is positioning itself as a regional African fintech player, aiming to scale internationally [1]. This aligns with the broader trend in Ghana and Africa, where regulatory frameworks are being developed to support fintech innovation and digital finance.
Affinity Africa takes inspiration from Nubank, a digital bank that expanded into markets like Colombia and Mexico, and went public in 2021. The Ghanaian bank aims to grow into a sustainable digital banking platform for its users, following in the footsteps of successful digital banks worldwide, such as Nubank [6].
In a bid to become a deposit-taking, tech-enabled bank, Affinity Africa has invested in field agents, a customer contact center, and robust support systems to gain the trust of its customers [2]. The bank's internal tools, including its credit engine, ensure data remains private and decisions remain transparent.
As of now, Affinity Africa has over 60,000 users, with 45,000 being active [4]. The bank's journey from microfinance to a licensed digital bank, rapid growth, and plans for cross-border expansion make it an exciting player in the African fintech landscape.
[1] Affinity Africa: Building a Digital Bank in Ghana. (n.d.). Retrieved from https://www.affinityafrica.com/blog/affinity-africa-building-a-digital-bank-in-ghana
[2] Affinity Africa. (n.d.). Retrieved from https://www.affinityafrica.com/
[3] Affinity Africa Raises $8 Million to Expand Services. (2024, March 1). Retrieved from https://www.affinityafrica.com/press/affinity-africa-raises-8-million-to-expand-services
[4] Affinity Africa's Major Focus for 2023: Business Banking. (2023, January 1). Retrieved from https://www.affinityafrica.com/press/affinity-africas-major-focus-for-2023-business-banking
[5] Ghana's Upcoming Crypto Regulations. (2023, February 1). Retrieved from https://www.ghanaweb.com/GhanaHomePage/business/Ghanas-Upcoming-Crypto-Regulations-630741
[6] Nubank: A Digital Bank Revolutionizing Brazil's Financial Sector. (2013, September 1). Retrieved from https://www.nubank.com/en-us/about/history
- Affinity Africa's growth in the industry, fueled by significant investments, has positioned it as a contender in the fintech sector, introducing technology-driven financial services that cater to various lifestyles and businesses.
- The bank's innovative credit scoring engine, based on user behavior, offers an opportunity for users to build their credit score and access Micro loans, signifying a break from traditional financing methods in the finance industry.
- With cross-border expansion plans, Affinity Africa aims to become a regional African fintech player, contributing to the broader trend of fintech innovation and digital finance, influencing the lifestyle and business landscape not just in Ghana, but across the continent.
