Granting loans in under 5 minutes: How FairMoney sped up onboarding using Smile ID
The numbers that matter
Government ID API uptime
Increase in daily loan disbursement
Surge in successful BVN retrieval
Verifications completed with Smile ID
How FairMoney sped up their onboarding process using Smile ID
After unsuccessful attempts with previous verification partners. FairMoney found a robust solution in Smile ID's Enhanced KYC product allowing them to verify users against government databases in two seconds. This partnership streamlined their KYC process across the board and seamlessly augmented their risk evaluation capabilities.
About FairMoney
FairMoney embarked on its journey in 2017 by offering digital loans, addressing a critical challenge in Africa - limited access to credit. Recognising evolving customer needs, they expanded their vision beyond mere credit accessibility. In 2021, this evolution reached a milestone when they secured their banking license, transforming into FairMoney Microfinance bank. This marked a pivotal moment as they diversified their services to provide a complete suite of banking solutions. Currently, their mission is to redefine African finance. An instrumental move in this direction was their recent acquisition of PayForce by FairMoney. PayForce is designed to revolutionise banking for merchants of all sizes, offering modern banking services such as POS solutions, credit facilities, and APIs for virtual accounts and transfers. FairMoney aims to reshape the African financial landscape by offering these essential services. Looking ahead 3 to 5 years, they foresee individuals becoming more integrated into the Fair Money ecosystem. They plan to offer services like float financing, where they can underwrite loans based on transaction volume, tailoring them to meet the precise needs of each business. Additionally, they plan to provide services such as virtual accounts and transfer APIs, transforming into a comprehensive ecosystem for businesses.
Challenges with verification
When FairMoney embarked on its journey to integrate more financial services and expand its offering, it faced a few considerable challenges. 1. FairMoney urgently needed a verification partner that could deliver both speed and reliability. Their goal was to verify thousands of users daily in under 5 minutes while ensuring robust post-integration support. Initially, they worked with a verification partner but faced customer dissatisfaction due to slow onboarding processes; and so their quest for a partner with reliable access to ID authorities intensified. 2. Incomplete data from previous providers posed another obstacle. This limitation hindered FairMoney's ability to make informed user verification and authenticity decisions, affecting their engagement in crucial banking and lending activities. 3. Furthermore, they prioritised cautious risk assessment. Ethically evaluating a customer's capacity and willingness to repay loans was paramount. This evaluation shaped their approach to loan approval and repayment plans, emphasising the need for a meticulous KYC process. Addressing these challenges pushed them to search for another verification partner that they could trust with speed, efficiency and effective post-integration support.
Partnering with Smile ID
Smile ID's Enhanced KYC product has been instrumental in FairMoney's growth and the development of a secure financial ecosystem. Smile ID aligns perfectly with FairMoney's key selection criteria, providing tools for rapid user verification and comprehensive data to make informed customer decisions, enabling loans to be issued in under 5 minutes. By verifying users and preventing fraud, Smile ID has helped maintain the integrity of FairMoney's financial services, fostering trust among users and merchants. This trust has encouraged users to rely on the platform for various transactions, knowing their products and finances are secure. In an industry where speed, trust, and continuous expansion are essential for success, partnering with Smile ID has brought FairMoney closer to their goal of creating an integrated financial services ecosystem for Africans.
.png)