AdalFi to help banks increase their loan portfolios
Pakistani fintech AdalFi, seeking to increase
loan offerings of banks, has raised $7.5 million in funding.
The funding round was led by UAE-based COTU
Ventures and Chimera Ventures, Pakistan-based Fatima Gobi Ventures and Zayn
Capital, and angel investors including executives from US-based Plaid.
AdalFi’s technology scores the financial
transactional data already possessed by banks. The B2B2C fintech then
uses personalized digital marketing to qualified prospects and then
provides real-time loans.
According to a survey by Karandaaz, only 30% of
adults in Pakistan have access to formal banking services and mobile wallets.
Salman Akhtar, co-founder and CEO of AdalFi said
in Pakistani banks only 5% of deposit customers are also borrowers. So, we
enable banks to tap this huge, latent customer base.
According to him, 14 financial institutions in
Pakistan have signed up with AdalFi, including United Bank Limited (UBL), Habib
Bank Limited (HBL), Meezan Bank.
A study by the State Bank indicates that long
lead times for loan disbursements is one factor behind consumers turning to
informal credit markets instead.
AdalFi monetizes through a share of the revenue made by the bank from the loan.