Branch, a Facebook-linked app that allows its users to score small loans through Safaricom’s mobile payment solution, M-Pesa has reported a 15% monthly growth.
The lender, which was launched in October 2015 has enjoyed a substantial amount of success thanks to its vigorous strategies such as the expansion to new markets including Tanzania, scaling of operations as well as hiring of talent in its operating markets. Most of these strategies have been spurred by a US$ 9.2 million-investment by venture capital fund Andreessen Horowitz in March 2016.
This growth reveals no surprises because mobile loan apps have actualized access of instant mobile loans at the touch of a button.
Branch did receive mobile loan requests to the north of 250,000 in May, and its monthly loan book is at US$ 3 million.
“Our monthly loan book is now at around Sh3 billion and growing 15 per cent month over month. Demand for credit in Kenya continues to increase while banks are starting to curtail lending in the wake of the interest rate cap,” said Sofia Zab, marketing director of Branch.
The organization allows users to borrow up to KES 50,000 using its smartphone app available on the Android platform. Branch has also revealed that the amount will rise if the number of follow-up loan requests keeps growing.
Notably, Branch is one of the most popular solutions for mobile loans. A survey conducted by a Kenyan-based research start-up Djuaji Research discovered that Kenyans were more inclined to borrow money from mobile lenders than banks. At the same time, it was revealed that Kenyans preferred mobile money for saving solution to banks.
Based on these findings, it apparent why mobile money apps and solutions such as Equitel (that processes 10 times more loans than its parent bank’s branches), Tala and M-Shwari, among others, have made it less challenging for people to get access to loans sans paperwork and thorough vetting processes.
[…] to the company, this exponential growth has been spurred by its unique policy of offering lower interest rates to customers who have […]
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