4G Capital, a fintech company, has announced the launch of NxtGen
NxtGen is a new credit solution developed specifically for the banking industry that will help provide working capital credit to micro, small and medium enterprises (MSMEs) across Africa.
The announcement was made at the Africa 2018 Forum in Egypt.
The Seed Funds (TSF), a financial institution in Ghana, will be the company’s first banking customer to use NxtGen’s turnkey technology that integrates seamlessly with their existing banking system.
NxtGen will enable TSF to reach the underserved MSME sector in Ghana in an automated and cost-effective way, the company added.
TSF will use NxtGen technology to support the ‘last mile’ retail supply chain by providing working capital credit, mixed with the company’s fintech platform to established micro-retailers on behalf of large distributors and supply chain aggregators.
The application of NxtGen is based on 4G Capital’s Kuza product, which has been successful in Kenya since its launch in 2017. To date, Kuza has provided more than US$ 500,000 in credit to 1,400 businesses.
According to a recent survey by TechnoServe, one of 4G Capital’s partners, customers using Kuza saw an 82 per cent average increase in revenue over 12 months.
Wayne Hennessy-Barrett, 4G Capital Founder and CEO, said, "We are proud to stand alongside The Seed Funds, showcasing the power of partnership between bank and fintech. Together we seek to address the MSME finance gap in Ghana which currently stands at over US$4.9bn”.
Albert O. Mmegwa, CEO of The Seed Funds, added, “We are excited to partner with 4G Capital to introduce this innovative product to the Ghanaian market. TSF is committed to partnering with innovative fintech companies to develop financial products and services for Ghanaian consumers. We expect the full platform to be disbursing loans at the beginning of next year.”
