Fintech Farm, a British fintech company that develops neobanks in emerging markets, has raised $7.4 million in funding for its new project.
A Neobank is a type of direct bank that only operates online and does not have traditional physical branch networks.
During the next two years, the company plans to open neobanks in eight countries. Flyer One Ventures and Solid led the round, with participation from Jiji, TA Ventures, u.ventures, and AVentures Capital.
Fintech Farm develops neobanks that offer customers user-friendly mobile apps and credit products for mass audiences as well as clients with poor credit histories.
Fintech Farm will launch Leobank in Azerbaijan in November 2021, with 100,000 cards already issued. The company intends to enter eight emerging markets in Africa and Asia over the next two years.
Instead of obtaining a banking license, Fintech Farm collaborates with local banks to enter the new market. Neobanks is launched in each country with new names but the same design and mascot — a funny lion with a lilac mane.
Dmytro Dubilet, a co-founder of Fintech Farm, stated, “we have a theory that today digital banks have to be not only useful and simple but even entertaining. So, we have developed our app with beautiful design, useful functions and made it fun to use. On the other hand, we have one of the best data science teams globally, so, we can launch neobanks with credit products from Day 1 and issue credits even to clients with a thin credit history”.
Nigeria is the company’s next target market, with plans to launch there in the coming months.
According to Nick Bezkrovnyy, a co-founder of Fintech Farm, “in terms of the credit product, we see an opportunity for a “mass credit card” in Nigeria”.
“Currently, credit cards issued by traditional banks are limited to the upper-middle class. At the same time, APRs of credit offerings from neobanks and alternative lenders may well be over 100 per cent. We are going to fill this gap and accept those customers neglected by traditional banks and offer them fair interest rates”.
Flyer One brings extensive operational expertise in Africa and other emerging markets, in addition to financial support.