Sean Emery & Eugene Booysen discuss the relationship between RainFin, Rise Africa and Absa with Business Day TVFeb 24, 2016 RainFin In the news Absa , RainFin , SME
The relationship between Absa and RainFin is not new. Barclays Africa holds a 49% share in RainFin. However, with the strategic partnership announced in February 2016, we see the two companies align more closely for mutual benefit.
Eugene Booysen, Head of Innovation at Barclays Africa, describes the step forward as a recognition of how RainFin as a platform has reached a level of maturity – one where it makes sense for Barclays Africa to begin using this open innovation to fund smaller unsecured loans to SMEs.
Although Absa has been funding loans on the RainFin marketplace for some time now, it will now openly recommend a portion of SME clients that are looking for unsecured loans of less that R750 000 to the platform. This allows Absa to diversify their offering, leverage RainFin’s unique insight into the consumer experience and be an active part of what could be considered the future of finance.
Eugene Booysen explains “We get to leverage a lower infrastructure cost in terms of how the origination occurs and we’re able to dilute our participation or at least create what we think is a fairer outcome for the client in terms of how that loan is priced.”
For the RainFin community, this means a more competitive marketplace for borrowers and lenders. The more lenders who join the platform, the greater the diversity of risk appetites, which should have a positive effect on loan fulfilment and the rates offered to borrowers.
Watch the full interview below: