Digital Banking for Africans is being meticulously constructed by Affinity Africa, drawing inspiration from Nubank.
Affinity Africa, a fully digital bank based in Ghana, has been serving the African majority since October 2024. The bank, designed to provide affordable financial services to informal sector workers and first-time banking users, has been a game-changer in Ghana's financial landscape[1][2].
Founded by Tarek Mouganie in 2022, Affinity Africa started operations under a microfinance license before officially launching the following year. The bank acquired a local microfinance institution and obtained the first digital banking license granted by the Bank of Ghana in over a decade[2]. This regulatory milestone, coupled with a user base exceeding 90,000 customers shortly after launch, supports Affinity’s goal of expanding across borders and serving a broader African market[2].
Unlike traditional banks, Affinity Africa aims to serve the 90% of Ghana’s MSMEs that remain informal and lack formal credit access. The bank leverages its digital platform to provide accessible loans tailored to these users, many of whom would typically be excluded by conventional banks due to lack of collateral or formal credit histories[1]. This inclusive approach aims to empower MSMEs to grow, hire, and scale operations, bridging a critical gap in Ghana's financial ecosystem[1].
The bank's credit scoring engine is based on user behavior on its platform, offering features such as savings, payments, loans, remittances, mortgages, and long-term business capital[1][2]. Users who meet internal benchmarks can access small loans (GHC 100) after 30 days on the platform, with higher amounts unlocked as they build a responsible track record[1].
Affinity Africa is not only a success story in Ghana but also a significant player in the global rise of neobanks, digitized traditional banking activities and services made accessible online. The bank's growth strategy focuses on financial inclusion by serving individuals and MSMEs with a wide array of products at a fraction of traditional banks’ costs due to its digital, branchless model[1][2].
The bank's user base includes salaried workers and informal traders, and Affinity Africa is addressing the issue of limited access to credit by providing its own loan and credit feature. The team takes inspiration from Nubank, a digital banking platform that launched in Brazil in 2013 and expanded into markets like Colombia and Mexico, going public in 2021[3].
Affinity Africa currently has over 60,000 users, with 45,000 being active. The bank employs about 100 people working on different teams. The team aims to pilot Business Banking services for micro and small businesses by Q3[3]. Despite plans for international expansion, the team approaches it cautiously[3].
The transition from microfinance to digital banking took approximately three years due to regulatory hurdles. Affinity Africa complies with emerging regulatory frameworks, including anti-money laundering (AML) and counter-terrorism financing (CTF) standards, positioning it advantageously as Ghana prepares for tighter digital finance and crypto regulations by late 2025[3][4]. This compliance enhances investor confidence and supports Affinity's growth in a rapidly evolving fintech landscape[3][4].
Affinity Africa prefers to grow towards an Initial Public Offering (IPO) rather than being acquired[3]. The bank's success story in Ghana demonstrates the potential of digital banking solutions in addressing financial inclusion and serving the underserved market, setting a precedent for other African countries to follow.
References:
[1] Affinity Africa. (2023). Affinity Africa - Digital Banking for Africa's Majority. Retrieved from https://www.affinityafrica.com/
[2] TechCabal. (2023). Affinity Africa raises $8m to expand across Ghana and other markets. Retrieved from https://techcabal.com/2024/02/24/affinity-africa-raises-8m-to-expand-across-ghana-and-other-markets/
[3] TechCrunch. (2023). Affinity Africa raises $8M to expand digital banking services across Ghana and other markets. Retrieved from https://techcrunch.com/2024/02/24/affinity-africa-raises-8m-to-expand-digital-banking-services-across-ghana-and-other-markets/
[4] Bank of Ghana. (2023). Anti-Money Laundering and Countering the Financing of Terrorism. Retrieved from https://www.bogh.org/aml-cft/
- Affinity Africa, a digital bank founded by Tarek Mouganie in 2022, aims to leverage technology in the financial sector to invest in the African lifestyle, providing affordable services to the informal sector workers and first-time banking users.
- As a significant player in the global rise of neobanks, Affinity Africa's business model is centered on financial inclusion, offering digital banking services to individuals and MSMEs at a fraction of traditional banks' costs, thereby promoting investing opportunities in the continent's technology and economic development.
