Fintech startup KUDImoney has launched in Nigeria, providing an online lending platform offering bridge loans of up to US$5,000 repayable over up to 12 months.
KUDImoney will begin taking deposits from next year and offering savings products. It has initially launched in Lagos, and hopes to scale across Nigeria within the next year.
“Access to credit is difficult, more so for smaller loans, and even harder when you need it fast,” chief executive officer (CEO) Babs Ogundeyi told Disrupt Africa.
“Traditional banks prefer not to participate in consumer credit because it is viewed as more risky and the cost benefit analysis is usually not favourable for them because over time they have focused on lending larger amounts to bigger entities or HNIs.”
That means those that need a “quick fix” usually end up going to loan sharks.
“There are a couple of other regulated consumer lending organisations, but they all still have brick and mortar elements. We are online only and do not require the customer to come to our office or send any physical document to our office,” Ogundeyi said.
KUDImoney sources its loans from third parties, and takes a percentage as revenues.