3 companies transforming the lending space in South Africa

By Edlyn Cardoza

Technology has silently made its way into every space of our lives. We now cannot imagine living a more leisurely life without our smartphones, from booking a ticket from the comfort of our bed to making cross border payments. It seems like mobile phones are a genie granting our every wish.

The financial sector has drastically advanced, fulfilling its customers’ needs by providing services online. The lending sector has seen a global rise. According to KBV Research, “The South Africa Digital Lending Platform Market would witness market growth of 24.7% CAGR during the forecast period (2019-2025).

Lending FinTech companies have helped SMEs and individuals with advanced lending services. FinTech lending companies is an providing the opportunity to reduce the current credit gap in Africa.

Here are 3 companies transforming the lending space in South Africa:

• DirectAxis

DirectAxis is a proudly South African business that has been in operation for 25 years. DirectAxis offers a range of products, from personal lending to life and short-term insurance and, more recently, access to financial health through its Pulse platform. They promote responsible borrowing and lending and comply with the National Credit Act. They continue to develop the digitisation of the business to deliver a positive and meaningful experience to our customers across all touchpoints.

• MPOWA Finance

MPOWA Finance is an innovative FinTech operating in the financial services sector, offering short-term loans to individuals. Established in 2008, MPOWA Finance was one of the first short-term online lenders in South Africa. Their success is rooted in our focus on using technology to solve complex problems. MPOWA Finance constantly looks for ways to improve and develop its products to deliver a better customer experience.

• RCS

The core purpose of RCS is to improve people’s lifestyle by being innovative in offering desirable and accessible credit products. The idea is to enable RCS customers to enjoy the convenience, comfort and peace of mind offered by these credit solutions. They are based in Southern Africa, but they operate beyond these borders, being part of BNP Paribas – a leading European bank with an international reach. RCS offers cards, loans, and insurance solutions under its RCS brand and in partnership with several leading retailers and businesses.

ALSO READ: Global Lending Vendors & Landscape Report Q2 2022