- Lenco, founded in 2021, offers a multi-currency digital bank for African businesses, addressing the financing gap for small firms.
- Easy account setup, robust financial tools, and secure, insured banking services support SME growth.
- Aims to be the go-to financial partner, promoting an inclusive, transparent financial ecosystem.
Did you know that, 40% of Sub-Saharan African adults have a bank account, highlighting a significant gap in financial inclusion?
The gap states that Africa highly demands efficient, accessible banking solutions.
Additionally, The African Development Bank also reports that small and medium-sized enterprises (SMEs) account for about 80% of employment in Africa but face a financing gap of over $330 billion.
Lenco, an Africa-based fintech startup, takes advantage of this gap and provides innovative solutions to minimize the issue.
Breaking the Banking Mold
Lenco was founded in 2021 by Andrew Airelobhegbe, Impact Airelobhegbe, Godstime Asine, and Praise Osagie.
Together they designed a multi-currency digital bank for businesses in Africa, offering easy-to-go financial solutions.
These solutions were for retail outlets, hospitality businesses, and many startups. Why choose them as their target?
The fact that 65% of small firms in Africa cite access to finance as a major constraint, is all more reason to appreciate Lenco's business model.
One of the key solutions they provide is to easily pay vendors, and suppliers, and perform cross-border payments.
It makes sure that businesses have access to growth capital, a crucial element for scaling operations.
Features that Empower
Lenco’s suite of services is tailored to meet the diverse needs of African businesses.
Their business current accounts, for instance, are real bank accounts that accept cheques, online transfers, and all forms of deposits.
The simplicity of opening an account, taking only 10 minutes with approval, within 24 hours makes it an attractive option for startups and SMEs.
Why would anybody, stand in queues with passport-size photographs and address verification copies in hand for hours when everything could be done at their fingertips?
Moreover, robust features like expense management, instant payouts, and automated reconciliation make it more favorable for the users.
Businesses can upload receipts, categorize transactions, and add comments to maintain clear financial records.
This level of detailed financial management can save businesses hundreds of hours in administrative tasks. Afterall,
The McKinsey Global Institute estimates that automation can reduce operating costs by up to 25% in financial services.
However, one might ask, what about financial security?
Given that Lenco has a feature of two-factor authentication and NDIC insurance through their licensed (Central Bank of Nigeria) bank partner ensures maximum trust and security.
Also, according to a report by the Nigerian Deposit Insurance Corporation (NDIC), over 97% of depositors are covered under the NDIC insurance scheme.
A Vision Making Impact on the Future
Lenco's mission goes beyond just providing banking services. They aspire to become 'the go-to' financial partner for African businesses; while also aiming to redefine a more inclusive financial ecosystem.
Their idea is to leverage technology and empower the helpers and definers of the world—small business owners, entrepreneurs, and innovators.
The idea of eliminating the bureaucracy and hidden fees commonly associated with traditional banking is the deal maker.
With this, it is offering a transparent, user-friendly platform. This approach not only attracts startups and SMEs but also fosters a culture of financial literacy.
Edited By Annette George
