Modefin, a leader in banking solutions for the African market, and Prime Bank, a leading bank in Kenya, have partnered to launch a win-win digital lending solution for customers in East Africa. Aptly titled ‘PrimeKopa,’ (kopa in Kenyan means ‘borrow’) the microloan can be availed on mobile, for a duration of 30, 60, or 90 days.

Prime Bank, founded in 1992, has a network of 23 branches, and business interests across six African countries. Modefin, Prime Bank’s long-standing fintech partner, designed and deployed the digital lending solution based on market research and its experience of having created best-in-class digital loans for leading banks across Africa.

PrimeKopa was launched on Oct. 1, 2021, and within a month more than 150 microloans totaling 5 million Kenyan Shillings (44,250 USD) were disbursed to Prime Bank customers. Until then, the Bank did not have a digital lending platform and customers had to apply offline for a loan at the branch which lengthened the disbursement cycle, especially during the pandemic.

Customers who meet eligibility criteria can apply online and avail of instant disbursement from Kenyan Shillings 5,000 (44 USD) to Kenyan Shillings 150,000 (1328 USD) with flexible repayment periods of up to 90 days. The interest rate is at 11% p.a which is quite attractive and competitive in the Kenyan context.

Ashish Baghel, Head – Digital Channels, Prime Bank, says the product was developed with a focus on the Kenyan market and based on an in-depth understanding of the borrowing habits of Kenyans. “Since borrowing from traditional lenders results in high cost of credit, PrimeKopa will help our Customers to overcome unexpected emergency situations such as medical expenses or instant funds required for a business opportunity”, he noted.

Regarding the product’s positioning, Ashish Baghel said: “With the launch of PrimeKopa, we have bridged the gap in digital lending for a vulnerable customer segment. We expect a rapid increase in sign-ups and market share, as our customers continue to unlock value from the product by way of instant loan access and flexible repayment at a competitive interest rate.”

Indranil Basu Roy, Chief Business Officer, Modefin, said: “Over the last 10 years, we have created numerous success stories in the African Continent, which were instrumental in Modefin being ranked as Star Performer in digital banking and channels by IBS Intelligence. We have propelled leading banks to migrate to digital platforms and promote a policy of financial inclusion. Our solutions have also helped reach the unserved and underbanked in remote locations. With PrimeKopa, we have made sure that households can access low-cost short-term microloans they wouldn’t have been able to avail otherwise.”

From a customer perspective, Mr. Roy said he expects PrimeKopa to strengthen Modefin’s partnership with Prime Bank, and act as a catalyst in the Bank’s vision of launching innovative products to match diverse needs.

In designing PrimeKopa, Modefin has ticked all the right boxes in terms of user-friendly features, robustness, scalability, and security. For determining loan eligibility and quantum of loan, specific business rules are applied, such as the age of the account, average balance for last six months, age of the customer, and customer’s credit score which is obtained automatically through real-time integration with an external agency.

The customer has the facility to repay the loan before the due date. If for any reason, the payment is missed by the customer, the software automatically debits the account with the amount available and continues until such date the loan is recovered.

The lego model of Modefin’s OEBP proved to be a big plus in the launch of PrimeKopa. Prime Bank already has many CASA account holders who are using mobile banking; hence PrimeKopa as a Lego block was enabled on the existing digital platform, which translated to lower costs and lesser time to market.

In the pipeline is PrimeKopa for non-bank customers. Modefin expects the launch of the variant to widen the target audience, enhance revenues and lead to an indirect increase in the Bank’s customer base.

About Prime Bank

Prime Bank Ltd is one of the leading private banks in Kenya and was founded in 1992. Serving its customers for over 29 years, with a network of 23 branches, Prime Bank has the expertise to deliver flexible, efficient and personalized services. Over the years, the Bank has developed its business interests in other African countries such as Malawi, Botswana, Mozambique, Zambia, and in Zimbabwe where it recently acquired Barclays Bank of Zimbabwe through its associate bank First Capital Bank.

About Modefin

Modefin, established in 2011, has an on-ground presence and operations in Bengaluru, Singapore, Dubai, Kenya, Zambia, Ghana, and the Philippines. Its customer base comprises 65 banks in 20 countries, and its solutions suite encompasses the entire digital banking spectrum. The Company has been ranked as Star Performer and rated among the Top 5 Digital Banking Channels globally by IBS Intelligence and certified as Best Place to Work in Information Technology category by Great Place to Work Institute.

For further information please contact:

Shravani G M

Marketing Manager, Modefin

T +91 9940684925

E [email protected]