AFB’s Qwikloan hit 2million customers
AFB’s Qwikloan, a 30-day loan product which runs on MTN’s mobile money platform, now has 2million customers, just 18 months of its introduction.
Arnold Parker, AFB’s Chief Executive Officer, noted that even though the business has been in operation in the country for almost a decade, its peak customer base was just 80,000 but Qwikloan has swelled that number to 2million in a year and a half.
“We have been in operation in Ghana for almost a decade but we have had only 80,000 customers. This shows where the opportunities in the market are, where the economy is going and how to position yourself to benefit from this economy going forward,” he told the B&FT after the company took its turn at the stock market’s facts behind the figures.
Cumulatively, AFB has disbursed about GH¢1.5billion or US$300million for the 30-day facility. The company also witnessed a 349percent growth in deposits from both individual and corporate customers.
AFB added that its profit after tax increased by 17percent year-on-year, with gross loan book increasing by 168percent. Net loan book also increased by 142percent for the same period.
Mr. Parker explained that the company’s strong performance can be attributed to firm core deduction at source loan growth, a well-balanced cost of funding and the impressive growth of their Qwikloan- mobile loan offering, during the year.
Touching on the 2019 plans for Qwikloan, Mr. Parker said the company is taking it gradual after a year and half to learn a few more things but added that they are pleased with the positive set of results, and the initial response experienced with Qwikloans.
“In 2019 we will continue to review our mobile loan offering to build a sustainable commercial offering for the longer term, while maintaining focus on our deduction at source solutions provided to public sector employees. This year we will also conclude the transition of our brand to Letshego’s blue and yellow, a brand that represents 21 years of financial inclusion in Africa.”
In the first quarter of 2018, AFB Ghana launched its Edusolution product that addresses the respective needs of private schools and provides credit facilities to both teaching and non-teaching staff, as well as suppliers who conduct business with the educational institutions. The financial solutions provided range from asset financing, project financing to personal loans.
It will be recalled that four years ago, AFB Ghana listed Medium Term Bonds on the Ghana Stock Exchange. In December 2018, the long-term credit ratings of the Company and its Investment Grade Medium Term Notes “bond” programme were reaffirmed as BB+(GH) and BBB+(GH) respectively, with the outlook accorded by Global Credit Rating Company as positive.
In response to a question about the company’s outlook for 2019, Arnold Parker reiterated that, AFB Ghana will be continuously committed to its great customer experience agenda, secured digital solutions and robust credit controls.