Building Digital Banking Services for Africans Modeled After Nubank: Affinity Africa's Patient Approach
Affinity Africa, a Ghanaian digital bank, was launched in October 2024, marking a significant milestone in the country's fintech landscape. The platform, designed to cater to the needs of the "African majority," offers a wide range of financial services, including savings, payments, loans, remittances, mortgages, and long-term business capital.
A Tech-Enabled Bank for All
Affinity Africa's goal was to become a tech-enabled bank that meets customers where they are, through various digital platforms. The company prefers to grow steadily and sustainably, aiming to become a household name in Ghana, rather than being acquired.
Focus on Financial Inclusion
The bank is particularly focused on helping its users, providing its own loan and credit feature using a credit scoring engine based on user behavior on its platform. This focus on financial inclusion is evident in Affinity Africa's user base, which includes salaried workers and informal traders.
Piloting Business Banking Services
In Q2, Affinity Africa plans to pilot Business Banking services for micro and small businesses, with a focus on digital onboarding and access to loans. This move is in line with the company's goal of serving the large informal sector and MSMEs, which account for approximately 80% of Ghana’s employment but are largely excluded from traditional finance.
A Growing Presence
Since its launch, Affinity Africa has surpassed 90,000 customers, reflecting significant early adoption in Ghana. The bank offers a full suite of financial services, including personal and SME accounts, savings, payments, transfers, investments, and loans. It is fully regulated by the Bank of Ghana and has a mobile app rated well in terms of usability, providing 24/7 affordable services accessible via smartphone.
Expansion Plans
Affinity Africa's post-launch roadmap involves expanding its services across Ghana with a focus on inclusion and affordability, tailored specifically to the needs of those traditionally underserved by banks. Cross-border ambitions are indicated, with efforts underway to extend Affinity’s digital banking model beyond Ghana in the near future, leveraging its milestone licensing status and growing customer base as a foundation for regional expansion.
Inspiration from Nubank
The team at Affinity Africa takes inspiration from Nubank, a successful fintech company in South America. The company's growth and expansion plans are reminiscent of Nubank's journey, which started in Brazil in 2013 and has since expanded into markets like Colombia and Mexico, with the company going public in 2021.
A Supportive Regulatory Environment
Affinity Africa's creation follows the acquisition of a local microfinance institution and an innovative license upgrade, positioning it uniquely in Ghana’s fintech ecosystem at a time when digital financial inclusion is vital. The Bank of Ghana is concurrently enhancing regulatory frameworks for digital financial services and digital assets, suggesting a supportive regulatory environment for fintech innovation including digital banks like Affinity.
In summary, Affinity Africa is an emerging digital bank in Ghana with significant traction and a strong growth plan focused on financial inclusion for informal workers and MSMEs, with ambitions to expand beyond national borders soon. It remains one of the most inclusive digital banking options in the Ghanaian market.
Affinity Africa, with a focus on becoming a household name in Ghana, aims to expand its financial services to include investing, potentially offering opportunities for users to grow their wealth through various digital platforms. To cater to the needs of its growing user base and the business sector, the bank plans to implement technology-driven solutions, such as AI-based credit scoring, for seamless transaction and lending processes.
Capitalizing on its traction and growth, Affinity Africa aims to leverage technology and innovative financial solutions to bridge the gap between the traditional financial system and the African majority, fostering a lifestyle of financial independence and empowerment in Ghana's digital landscape.
