Disclaimer: This information does not constitute financial advice or recommendation and should not be considered as such.
The 2022/23 fiscal year has been chaotic financially for Ghanaians. The government’s default on debt had a spiraling effect on individuals and businesses. Inflation went off the roof while investors suffered haircuts on their investments. These challenges were further rehashed in Old Mutual Ghana’s survey conducted last year, in which 63% of the respondents reported being financially stressed. Moreover, 55% indicated earning less than their pre-2022/ recession incomes.
As money plays a pivotal role in our lives, this two-part innovation spotlight aims to shed light on some fintech companies building products to enhance people’s financial health. These platforms are building for various aspects of personal finance, such as budgeting, investing, banking, and even insurance.
Financial Literacy & Management
About 80% of Ghanaians are financially illiterate, according to the National Strategy for Financial Literacy Education and Consumer Protection. This results in poor financial decision-making, increased debt, limited savings, and adverse effects on mental health, relationships, and overall economic mobility. Companies building in this segment include
- Bethniel Finance
Bethniel Finance offers a one-stop shop for improving financial literacy, managing finances, and accessing financial services. Founded by Edward Akani in 2022, the company provides users with curated financial literacy content, local financial markets data, and access to finance experts. The startup has partnered with investment and commercial banks to enable users to access saving products.
The company was accepted into the UNICEF Startup Lab in 2023 and won the 2022 GIZ Innovation Challenge for Financial Inclusion in Ghana.
- SeevCash
SeevCash helps individuals build better financial habits through its budgeting feature, tracking expenses, and discovering product prices and marketing opportunities for small businesses that sign on to the platform. Founded by Dawuda Iddrisu (ex-CTO, BezoMoney) and Charles Owusu, the company recently hit a 13,000-user milestone on the app. Businesses can leverage its price discovery technology to boost their sales by getting discovered by users.
Rent & Mortgage Finance
Aside from the housing deficit, tenants face rental financing challenges. Accra landlords demand a one—or two-year rent advance, which forces working professionals to secure loans from their banks for rent. Below are a handful of fintechs revolutionizing rent and mortgage finance by seamlessly integrating digital platforms, data analytics, and innovative payment solutions to streamline and enhance the overall housing transaction experience.
- RenMo
RenMo assists house seekers with the financial backing to rent residential property. With the slogan, rent & pay monthly, the company advances rent on behalf of users, and users pay for their rent every month to RenMo. To help tenants acquire homes, Renmo’s rent-to-own program allows tenants to convert their monthly rent payments into equity. A portion of each payment goes towards owning the apartment, gradually making you the homeowner.
Led by Patrick Pierson-Prah, RenMo also partners with corporations to provide home rental services to their employees.
- Edanra
Founded by Bill Cobbinah in 2020, Edanra is a secure and convenient platform for Ghanaian tenants to find and pay for rental accommodation. In a market where one has to resort to multiple agents to find a home and pay up to two years’ rent in cash upfront, the startup vets homes and makes it possible for tenants to find houses, pay rent monthly, and build credit ratings.
Edanra was one of the four Ghanaian startups selected for the AWS Fintech Africa Accelerator last year.
- Seso Global
Seso Global is a property marketplace that leverages blockchain technology to provide secure and risk-free digital land transactions between property owners, buyers, land agencies, financial institutions, and professionals that service the real estate value chain.
The company recently partnered with Republic Bank Ghana to launch a diaspora mortgage platform to simplify the process of investing in Ghanaian real estate by allowing Ghanaians living abroad to search, submit, and manage their mortgages in Ghana digitally.
Savings
Traditional financial institutions often present hurdles, including cumbersome procedures, stringent eligibility requirements, and limited accessibility, making the saving experience less than optimal. Fintech startups are setting into the foe to provide solutions. These fintech solutions not only provide user-friendly platforms for effective savings but also offer a range of features tailored to the specific needs of individuals, fostering a culture of financial resilience and independence.
- Affinity Ghana
Affinity Ghana is a digital bank founded by Dr. Tarek Mouganie in 2022. The startup provides affordable financial products to individuals, micro-enterprises, and SMEs. It provides users with current accounts, savings accounts, and investment products. At the end of 2023, the company claimed to serve 12,500 customers and disbursed $12.5 million of loans.
In 2022, Affinity upgraded its Microfinance license to a Savings and Loans license from the Bank of Ghana. Last year, the startup was selected for the inaugural Visa Africa Fintech Accelerator.
- BezoMoney
BezoMoney focuses on improving the financial well-being of the unbanked and young individuals through its innovative digital financial products. The flagship product, BezoSusu, is a personal and group savings platform that allows users to set and achieve financial goals and build a creditworthy savings history. BezoMoney partners with financial institutions to offer additional services like insurance, pensions, payments, and investments to support upward social mobility.
BezoSmart, a financial literacy product, employs interactive voice response technology for the informal sector and engages young individuals through podcasts and campus programs to foster financial education. Led by Mubarak Sumaila, BezoMoney is backed by investors such as MEST African and Techstars.
- Naa Sika
Naa Sika utilizes chatbots to extend financial services to the informal sector and youth. The chatbots are built into already-known chat apps, such as WhatsApp, Telegram, and Facebook Messenger, which enable users to open a bank account, take out a loan, buy insurance, transfer money, pay bills, and accept international payments. The product leverages natural language processing and machine learning to allow chatbots to understand and respond to people’s questions naturally.
Founded by Ralph Menz in 2018, the company seeks to empower the informal sector and youth with tailored digital financial services.
