A British fintech company creating neobanks in emerging markets, Fintech Farm, has raised a $7.4M investment to develop its new project.
A Neobank is a type of direct bank that operates exclusively online without traditional physical branch networks.
The company is going to launch neobanks in eight countries during the next two years. The round was led by Flyer One Ventures and Solid, while Jiji, TA Ventures, u.ventures, and AVentures Capital also participated.
Fintech Farm creates neobanks providing customers with user-friendly mobile apps and credit products for mass audiences and even clients with thin credit histories.
In November 2021, Fintech Farm launched Leobank in Azerbaijan, and 100,000 cards have already been issued. Over the next two years, the company plans to enter eight emerging markets spread across Africa and Asia.
Fintech Farm partners local banks to enter the new market instead of getting its banking license. In each country, neobanks are launched with new names but the same design and mascot — a funny lion with a lilac mane.
A co-founder of Fintech Farm, Dmytro Dubilet commented that, “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 next market on the company’s radar, where they expect to launch in the coming months.
A co-founder of Fintech Farm, Nick Bezkrovnyy, said: “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.”
Along with financial support, Flyer One brings extensive operational expertise in Africa and other emerging markets.