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Yabx, a financial technology (fintech) venture with headquarters in the Netherlands, today announced its entry into the Nigerian market. In a statement sent to Financial Nigeria, the fintech said it is on a mission to democratize credit across Nigeria with its digital lending offerings.

According to the statement, Yabx plans to introduce new age fintech solutions around digital lending and will help banks to launch new and innovative products for new-to-credit segment like buy now pay later, personal loans, payday loans, MSME loans, etc. The company said it has partnered with several African banks to create large, scalable, and profitable digital lending portfolios by leveraging its fintech platform.

A World Bank report says the private credit bureau coverage in Nigeria was 13.9% in 2019. The number is likely to have improved post-pandemic but there is still a long way to go for the service that provides credit information to support safe bank lending. Yabx says it aims to bridge the gap between the new-to-credit segments and banks in Nigeria by introducing fintech products and solutions in the high demand markets of the country.

The company said it will further amplify its local operations in Nigeria to capitalise on the investments being made in the digital lending space of the country, promising to help banks to widen the horizon of services they offer to their captive base.

“While digital financial services have catalysed financial inclusion, access to financial services and credit remains an obstacle in countries like Nigeria,” Rajat Dayal, CEO & Founder of Yabx said. “Without available credit services, smalls farmers, SME owners, and the new to credit segments face difficulty in obtaining loans to make profitable investments or pay off debts.”

Yabx uses Big Data Analytics and AI/ML algorithms on large volumes of alternate data to create a detailed financial identity of customers and help banks underwrite them over Yabx Loan origination and Lifecycle Management System. This customer origination and servicing can be done on various channels like the bank’s own digital banking app, USSD channel, website, or even as embedded options in third-party apps.