Michael Bowren - Afrikan Heroes

South Africa’s Finch Tech Acquires Majority Stake In Finance Marketplace, FundingHub

June 22, 2021

Following a prior investment in 2019, Finch Technologies, a Cape Town-based fintech, has made a large further investment to become the majority stakeholder in South Africa’s premier business financing marketplace, FundingHub.

*Michael Bowren, Finch Technologies CEO.*

“We made a second investment into FundingHub, due to its dramatic growth over the past 18 months. We are confident about the ongoing expansion of this business. We are particularly interested in investing in technology-driven businesses that help financial service providers originate sales, onboard new clients in a seamless manner and enrich their own database. It is through the seamless origination and onboarding that real value is offered to businesses and consumers,” said Michael Bowren, Finch Technologies CEO.

Here Is What You Need To Know

FundingHub connects South African SMEs with 33 banks and other lenders that can help them expand their company. SMS may evaluate finance alternatives for free, ranging from R10,000 to R100 million, thanks to the company’s four-year-old business. SMEs who apply for finance on FundingHub have been in operation for at least six months and generate a minimum of R350,000 in yearly revenue. They’re matched with the most suitable lender.

Finch Technologies controls 100% of Fincheck, South Africa’s leading financial comparison marketplace, which assists consumers and companies in finding the best financial solutions for their requirements.

Finch Technologies presently has three technology-enabled products: two marketplaces (Fincheck and FundingHub), a document collecting and verification system (Gathr), and a credit rehabilitation technology that shows an individual’s credit report in a simple and free manner (BetterScore).

Says Bowren: “Finch Technologies is rapidly evolving both our marketplaces, Fincheck and FundingHub to provide an end-to-end solution. This means that both platforms will allow South Africans to apply for financial and insurance products, upload the relevant documents and compare, in real time, the offers that banks, lenders and insurers have available. This is a significant advance in the South African market and a necessary move towards an open financial ecosystem.
Read also:Bank of Uganda Launches Regulatory Sandbox Regime For Fintech Startups

“Since the start of Covid-19, FundingHub has seen a dramatic increase in requests for financing from SMEs,” he adds. “This is for two main reasons. The first is SME distress and their struggles to manage cash flow. The second has been the inability or reluctance to visit a physical bank branch. SME owners are therefore searching and comparing options online.

“Businesses and lenders have therefore been driven to accept a full digital solution which encompasses the vision of Finch Technologies which is moving toward a full end-to-end marketplace, offering everything short of disbursing the final product.”

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning write

South African fintechs launch initiative to compare finances via POS terminals

November 6, 2020

South Africa’s leading fintech startup, Fincheck, has partnered with Dashpay, a payment, and merchant solutions provider, to provide a variety of personal on-demand finance facilities to customers via a large number of Newland point of sale (POS) terminals. Local fintech startup collaborates with Dashpay to manage South Africa’s customer’s financial positions via Newland POS terminals.

According to Michael Bowren, a director of Fincheck, the collaboration with Dashpay and reiterates their app’s vision to assist South Africans in their financial decisions. “We are excited to work with Dashpay on this initiative. The Fincheck vision is to allow all South Africans to compare various banks, lenders, and insurers across the country, for free. This collaboration between Fincheck and Dashpay is an innovative solution, and one which has the goal of assisting South Africans make a better financial decision.”

Dashpay is a division of a JSE-listed company called Capital Appreciation. Capital Appreciation supplies Newland Payments devices across South Africa and the Southern African Development Community (SADC) regions. The Newland device is available on the Android platform, which enables the POS to process traditional credit card purchases simultaneously while operating a number of applications. Newland Payments is reportedly the second-largest point-of-sale (POS) manufacturer worldwide.

Dashpay has the capability to process credit card purchases while Fincheck is an app that allows users to access and compare offers from more than 80 banks, lenders, and insurers in South Africa.

The collaboration provides users the opportunity to choose a preferable form of finance and apply for their personal finances by downloading the Fincheck app and linking it directly to terminals. Free to use, the comparison feature aims to cover unexpected expenses their users may encounter.

Aside from providing users the opportunity to compare financial offers from major banks, lenders, and insurers across SA, which also include short term and long term loans varying from R1,000 to R350,000, merchants also benefit from this innovation.

Dashpay merchants provide customers the opportunity to explore numerous finance features for purchases. Working hand-in-hand, when a customer has made an application with Fincheck, communication becomes streamlined for the customer. Essentially, the new service will lessen the administrative burden for merchants and provide an ease-of-access to a much-needed service for customers. Benjamin Powell, managing director of Dashpay explains that the collaboration aims to help users manage their finances effectively, even in unexpected situations.

“A seamless partnership like the one with Fincheck will assist consumers in managing their finances quickly and easily. Whether it’s an emergency vet bill for a sick pet, additional finance to help purchase necessities, unexpected medical expenses, or other expenses which life presents from time to time – this integrated solution will make it both simpler and safer to access long- and short-term finance from a reputable financial services institution, via Fincheck”.

According to reports, customers will gain access to credit reports for free, helping them understand their current financial situation due to the innovative collaboration between Dashpay and Fincheck. The feature will include a clear step-by-step guide on how to improve customers’ credit scores and overall financial health.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry