Ivory Coast drivers now have access to in-app loans of up to 300,000 CFA ($500), according to a statement released by the taxi-hailing operator Yango on Wednesday.
The announcement claims that the in-app loan is made possible by a collaboration between Yabx, an embedded finance platform that creates credit profiles for thin/no file customers, and COFINA, one of the nation’s top mesofinance institutions.
The offering, a digital loan product known as the Driver Cash Advance service, will increase credit availability for a large number of people and enterprises. The statement claims that drivers will have immediate access to cash advances of up to XOF 300,000 (USD 500) via the Yango platform.
Additionally, they will have various payback options ranging from two to eight weeks.
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Loans to be extended to customers, food delivery services and retailers
Yango claims that although the collaboration is now only available to its partner drivers, it will soon be extended to include customers (riders), food delivery services, and retailers.
Speaking about the anticipated effects of the cooperation, Kadotien Soro, the Country Manager of Yango in Ivory Coast, emphasised the significance of facilitating access to funding for business growth for entrepreneurs and supporting partners.
‘’We are excited to partner with COFINA and Yabx to support our community. By providing this lending service to our partners’ drivers and users, we empower them to fulfil their dreams and achieve the desired results by investing in their businesses. This is a great opportunity and I entreat all beneficiaries to take advantage of it and be diligent with the utilization of these funds in order to grow,’’ he said.
Benefits of the Yango-Yabx-COFINA cash advance partnership to users
According to the company, the introduction of the “Driver Cash Advance” service would improve financial accessibility for its community and increase driver involvement. It claims that this will greatly enhance the user experience for every user.
Yango claims the new program will give drivers a smooth way to manage their cash flow and take care of everyday costs more effectively, with a large user base of drivers and riders expanding at a rate of up to 25 percent annually.
Yango to leverage on Yabx’s AI and Machine Learning algorithms to create detailed financial identities for borrowers
This voyage will be undertaken by Yango in collaboration with Yabx, a state-of-the-art Lending-as-a-Service (LaaS) platform.
For borrowers without prior access to official credit, Yabx analyses digital footprints and generates comprehensive financial identities using artificial intelligence and machine learning algorithms.
Yabx will allow drivers to get cash advances instantly by using unconventional credit scoring techniques and creating an end-to-end loan journey on the Yango app.
According to the embedded finance platform, it has effectively created and executed a wide variety of financial solutions across Asia, Latin America, and Africa. These products, which are designed to promote financial inclusion and strengthen marginalised communities, include term loans, overdrafts, microloans, handset financing, and more.
Puneet Chopra, Yabx’s Chief Growth Officer, discussed the significance of the collaboration, saying that it marks a significant turning point in the company’s goal of providing financial services that are suited to developing countries.
“By embedding lending directly within the Yango platform, we are removing barriers to financial access, offering users quick and convenient access to capital. We believe embedded lending has the potential to transform access to credit in underserved regions and contribute to a more sustainable gig economy across Africa,” Chopra said.
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Yango-COFINA’s advanced cash feature to provide seamless loans to drivers
In addition, Yango is launching the advanced cash feature in partnership with COFINA Group, one of West and Central Africa’s leading mesofinance companies. The COFINA Group is committed to advancing financial inclusion by aiding in the growth of entrepreneurs and small and medium-sized businesses (SMEs).
COFINA is essential in delivering the funding required for the cash advance operation, guaranteeing Yango drivers easy and rapid access to credit.
COFINA confirms its commitment to supporting initiatives that aim to develop platform economies and contribute to inclusive economic growth in Côte d’Ivoire and beyond, leveraging its experience and continental reach.
Speaking about the program, Mr. Amed Sié TOURE, Managing Director of COFINA Ivory Coast, stated that it is a continuation of the organization’s dedication to digital innovation and financial inclusion.
“At COFINA, we firmly believe in the power of financial inclusion and digitalisation to drive innovation and support players in the digital economy. This partnership with Yango and Yabx represents a significant step forward in offering financing solutions tailored to the needs of Yango drivers. We are proud to play a role in this initiative, which paves the way for a more inclusive and resilient digital economy in Côte d’Ivoire,” he emphasised.