(Ecofin Agency) - After a first digital banking experience in Azerbaijan last November, the British company Fintech Farm plans to launch such an initiative in Nigeria over the next two years.
“Our next market is going to be Nigeria, we have visited Nigeria a couple of times already and it is one of our favorite countries,” Dmytro Dubilet, co-founder of Fintech Farm, said. To fund its plans, Fintech Farm raised $7.4 million in a deal led by investment firms Flyer One Ventures and Solid. Several other investors participated.
The company seeks partnerships with authorized local banking institutions. “Usually it’s a 50-50 partnership with a local bank,” Dmytro Dubilet said, explaining that his company "is responsible for the business side of things – the app and credit decision processes. With its local knowledge, the partner bank holds the license and the capital, as both parties invest in the business together equally.”
In November 2021, the British fintech launched a digital bank -Leobank- in its first market, Azerbaijan. It plans to continue its development in eight other emerging markets. In Nigeria, Fintech Farm will offer "fair" interest rates compared to those charged by traditional banks. The company is also thinking of launching mass-market credit cards that will be accessible to low-income populations. This will boost competition in a market already operated by companies such as Fairmoney, Sparkle (which raised $3.1 million last October), and Kuda.