CredPal Enhances Financial Access in Nigeria With Loans, Savings, and Credit Services

By : Adoni Conrad Quenum

Date : lundi, 15 avril 2024 15:06

Last updated : lundi, 15 avril 2024 15:11

With over 100,000 downloads of its Android app, this Nigerian fintech continues the journey it began in 2018 to enable access to various financial solutions. Its participation in Y Combinator in 2019 enabled it to access funding to develop its technology and support its growth.

CredPal is a fintech solution developed by a Nigerian startup that allows users to access a variety of financial services through its mobile app, including saving, investing, and a Buy Now, Pay Later (BNPL) option. Founded in Lagos in 2018 by Fehintolu Olaogun and Olorunfemi Jegede, the company raised $15 million in March 2022 to expand its offerings and support growth across the continent.

Discussing the funding round, Fehintolu Olaogun said, "We’ve built out a merchant suite to cater to those who have like full-fledged e-commerce websites to those with brick and mortar store and social commerce merchants. [...] Our tech allows consumers to be able to interface with CredPal across a wide range of channel."

In 2019, the fintech joined the Winter cohort of the California-based accelerator Y Combinator and has positioned itself in the Nigerian market by highlighting its BNPL offering. The aforementioned funding has facilitated the rollout of services in a niche segment of financial technology. Users create an account when they first log into the mobile app, which is available on both Android and iOS platforms. They must provide personal information to gain access to all the financial services offered by the fintech.

In addition to BNPL, CredPal offers savings accounts, virtual credit cards, and the "Credit Builder" program. This latter service helps customers combat a poor credit history by providing access to credit through investments. It allows clients to demonstrate their ability to repay debts on time, thereby improving their credit score and securing a brighter financial future.

Regarding the credit card, Fehintolu Olaogun mentioned that it was designed to increase the reach of the BNPL service. The savings feature allows users to accumulate points to qualify for increasingly significant credit lines. CredPal lends between 5,000 (about $4.34) and 500,000 nairas to its users based on their eligibility. They have between 30 and 180 days to repay the loan, after making a 30%  down payment. Interest rates range from 4% to 9%.

Adoni Conrad Quenum


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