Olugbenga Agboola Aims to Build Credit in Africa for Economic Growth
Olugbenga Agboola, CEO and co-founder of Flutterwave, believe that making it simpler for customers to obtain credit is the key to assisting Africa’s economies in reaching their full potential. Although Africa is one of the world’s fastest-growing consumer markets, many African nations need well-developed consumer credit institutions that make it simple for entrepreneurs, businesses, and individuals to obtain loans.
According to Agboola, without credit, it takes far longer for money to circulate through a society’s various payment methods, which retards the rate of innovation. In addition, he stated that many members of Africa’s growing middle class are disadvantaged because they lack credit records.
Customers in many parts of Africa cannot demonstrate their dependability to lenders because they need credit records. This differs considerably from the United States, where many begin accumulating credit at age 18. According to Agboola, African customers can only advance in the market if they have the capital to start or expand.
Flutterwave’s objective is to provide African firms and entrepreneurs with access to credit data and assist them in obtaining intelligent funding. Agboola stated that they want to make it easier for retailers to share their data with lenders so that the lenders can then use that data to decide whether or not to provide the merchant a loan to grow and expand. Know more about Olugbenga Agboola on Techcabal
Some Africans devote the majority of their income to purchasing at roadside stalls. He continued by stating that providing these enterprises with access to capital will enable them to store more goods and attract more customers. Agboola finds it incredible that business owners may obtain loans via cell phone, which will allow them to purchase more products at better prices, which they may discount and sell at a loss to customers. Nevertheless, this is only possible with sufficient data and the appropriate infrastructure.
Agboola also stated that Africa has the opportunity to construct a highly effective financial system without experiencing the same development pains as other regions. He continued by stating that the newer forms of credit bureaus in Asia and the Middle East are superior to their predecessors. In several African nations, credit reporting organizations are required. Some agencies must be established from scratch, while others must expand to accommodate smaller clients, such as sole proprietors and small businesses.
Cash reigns supreme in Nigeria, where Flutterwave is headquartered, and according to Agboola, many people still need bank accounts. Increasing numbers of Africans utilize Flutterwave’s technology to make and receive payments, send money to family and friends, and launch their businesses yearly. Currently, the objective is to encourage more individuals to use credit by standardizing access to data. Customers becoming savvier in Africa will lead them to become more accustomed to utilizing credit.
Flutterwave’s platform aims to generate value by gathering and distributing information about purchases and payments to lenders. This information provides lenders with additional methods to determine the likelihood of losing money when lending to individuals or enterprises. Agboola believes the transition from a cash-based to a credit-based economy should go smoothly, given that more Africans utilize Flutterwave’s technology each year.
Olugbenga Agboola, CEO and co-founder of Flutterwave, believe that making it simpler for customers to obtain credit is the key to assisting Africa’s economies in reaching their full potential. Although Africa is one of the world’s fastest-growing consumer markets, many African nations need well-developed consumer credit institutions that make it simple for entrepreneurs, businesses, and…