Space For One More Digital Bank?
Lulalend and Nigerian Credit Provider Access Bank are branching out into the South African digital banking space as they prepare to launch SA’s latest digital bank.
Lulalend have had some success in the local market advancing credit of between R10 000 and R5 million to businesses and focusing on repayment terms of less than a year.
Now Lulalend and their international partner are looking to break into the local banking market.
You may be forgiven for wondering if the SA market needs another bank or can sustain one. Lulalend feel that local SMEs* are underbanked and they can reach these companies and offer them targeted banking services.
‘The bank will be known as Lula’
The bank will be known as Lula and will operate in the digital banking space (meaning they will not need lots of regional outlets and physical offices).
Lula say they already have a waiting list of 20 000 clients. They plan to launch in March 2023.
*SME: Small and Medium sized Enterprises