The economy throughout Africa is growing. However, not all industries have caught up, and one of them is digital banking. Entrepreneur Xolane Ndhlovu has set out to solve this problem through his company DafriBank.
DafriBank PLC is a borderless digital-only bank created to serve entrepreneurs in Africa and others who exist in the digital space. It will offer a wide range of services, including merchant account, deposits, transfers, exchanges, and crypto wallet. The bank plans to launch operations in the third quarter of 2021. It will have physical locations in Nigeria and South Africa, with hopes to expand to Botswana, Kenya, and Ghana. "DafriBank's digital banking model will allow Africa's population to access financial services digitally," said founder Xolane Ndhlovu. "We aim to open up new opportunities to those on the African continent and push boundaries in the African banking community.
World Bank statistics revealed that 38% of the adult population doesn't have a bank account. In some areas it's far higher; in Colombia and Peru it's over 60% and in the Middle East it's over 80%. Likewise, access to basic financial tools and micro-financing is very limited in many poorer parts of Africa. DafriBank will allow people all over the Continent and beyond to make deposits, purchases, sales, money transfers, and investments without ever needing access to a traditional bank account. This includes efficient micro-lending operations that can help change the lives of people. DafriBank reduces prices for all with lower fees and no hidden costs, including costs of remittance and other money transfers. Also, traditional banks and even digital ones have let down the community. "We aim to embrace cutting edge technology and make the banking process accessible to everyone."
Investors say that DafriBank has enormous potential to influence the African economy. This is even more important as more businesses on the continent go digital. "We've found enormous growth in the digital sector, including e-commerce, stock market, digital and social media marketing, Airbnb, and many others," Ndhlovu said. "These businesses massively contribute to the economy, and they currently don't have a lot of banking options. For example, payment methods like PayPal are often restricted or charge exorbitant fees. We want to change that." DafriBank wants to streamline the banking experience and elevate it. They'll create solutions for and services useful to every African across the continent.
As Africa's economy grows, it's more and more critical for people to have a reliable and accessible banking system at their disposal. DafriBank will offer this service to all entrepreneurs on the continent in the third quarter of 2021, and many businesses are looking forward to their release.