A Lagos-based startup, BFREE, has raised $800,000 seed funding to improve consumers’ financial health through credit management solution.
DisruptAfrica made this known in a statement made available to Financial Street on Monday.
It explained that the startup’s credit management solution aims to encourage consumers that have fallen behind on their credit repayments to sustainably clear their balances.
According to DisruptAfrica, this would be done by deploying a combination of self-servicing solutions, communication automation and human operations, supported by machine learning algorithms that cluster and predict customer behaviour.
This results in higher recovery rates for lenders and a better customer experience for borrowers, it added.
The Chief Executive Officer and Co-founder of BFREE, Julian Flosbach, said, “We see significant use cases among other customer verticals with digital products such as commercial and microfinance banks, embedded finance solutions, like buy-now-pay-later, credit cards, and even tax payments at some point.
“Basically, everywhere where value is owed, our solutions can be deployed. Here, we also don’t just build a solution for Nigeria, but a solution that can be potentially used in every emerging market with a challenging infrastructure for collections.”
The Co-founder of Beta Ventures, Ike Eze, said he was excited to help grow the first ethical credit management company on the continent.
Founding Partner of GreenHouse Capital, Bunmi Akinyemiju, added, “Within a few months, BFREE has been launching product after product and now already achieves 60 per cent of total collections via non-human activities, gradually taking the risk of human liability out of the collections process.
“They are innovating at a point in the lending value chain that has been broken and long ignored. Their goal is to make collections more efficient and data-driven, and this is the essence of the role of a tech startup.”
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