CreditClub aims to expand the scope and profitability of financial institutions within the informal sector by deploying innovative branchless banking solutions and establishing agent clusters in every community
Results from numerous studies have shown that majority of the adult population in Nigeria and Africa are financially under-served. This phenomenon has been attributed primarily to the cost structure and traditional mode of delivery of Banking services that relies heavily on highly sophisticated and expensive branches and personnel. The convenience and customer intimacy offered by informal financial entities to fill existing gaps has been very appealing to customers and profitable to operators.
However, due to lack of sufficient regulation, capitalization and technology, these informal services have proven to be unreliable and even costly to users who sometimes lose large sums when such entities suddenly go bankrupt or seize to exist.
Recently established regulations to significantly reduce requirements for opening accounts as well as legitimize the use of third party entities to deliver Banking services have opened opportunities to combine low cost operations and remote reach of third party entities with technology, stability and legitimacy of regulated financial institutions in order to achieve wide-spread adoption of basic financial services especially among the un-banked and under-banked.