Through the strategic investment, Standard Bank has launched a mobile application, powered by Nomanini, which offers underserved informal retailers financial services for the first time
CAPE TOWN, 27th August 2019—Nomanini, the pioneering fintech platform for the informal retail ecosystem, has today announced a $4m funding round led by Standard Bank, Africa’s largest bank, and completed by Goodwell Investments, an Amsterdam-based investment firm focused on fintech and financial inclusion.
Through the terms of the strategic investment, Standard Bank gains a stake in the company and the ability to use Nomanini’s platform to unearth previously ‘invisible’ data on the informal retail economy.
With the benefit of these business analytics, the bank can offer a mobile application which provides access to new lines of business, credit and savings services for millions of informal merchants across 14 African countries - all without having to set foot in a bank branch or leave their points of sale. The service will be available in South Africa, Zambia, Mozambique, Uganda, Malawi, Angola, Zimbabwe, Namibia, Ghana, Nigeria, Kenya, Tanzania eSwatini, Lesotho and Botswana.
Transaction data analysis via Nomanini's platform means that micro-merchants’ creditworthiness can be more accurately assessed and, as a result, many will become eligible for working capital loans for the first time. For the merchants using this service, this means a boost to ongoing trade, increased return customers and the sale of additional goods and services.
The partnership is a culmination of Standard Bank and Nomanini’s shared mission: to help the informal retail trade grow and of Standard Bank’s commitment to branchless banking, helping its customers “bank at any time, from anywhere”. The launch of the new app will enable Standard Bank to boost access to financial products and services, and, at the same time, expand its customer base while addressing the business needs of Africa’s informal retail merchants.
“The reality is, around 86% of all employment in Sub-Saharan Africa is informal. Going to the bank and filling out forms for a loan is simply not viable – and can take days. In Nomanini, we’ve found a partner uniquely placed to help micro-merchants in Africa thrive, not just survive," said Adrian Vermooten, Head of Digital in Africa Regions, Standard Bank. "Our partnership and investment in Nomanini has helped us uncover simple, scalable opportunities while granting new and existing customers access to financial services for the first time. Previously, this type of information was unavailable to us but now our merchant customers can access banking services wherever they are and whenever it suits them.”
For Nomanini, the partnership with Africa’s largest bank adds merchant financing to its existing service offering and provides the opportunity to scale into new markets. With the investment, the company plans to expand its portfolio of financial services to offer remittances, insurance and other products in the future.
“This partnership with Standard Bank will be instrumental for Nomanini’s next wave of growth, while ensuring that millions of Africa’s underserved micro-entrepreneurs receive access to digital financial services for the first time. And this is just the beginning. Nomanini’s interoperable wallet is a gateway to a whole range of digital banking services - loans and savings now but soon, remittances and insurance too. It’s only by bridging the divide between the digital and the physical cash that rules in these markets that we’ll be able to rewrite the rules of informal retail trade in Africa,” commented Vahid Monadjem, Founder & CEO of Nomanini.
Sub-Saharan Africa remains one of the world's largest untapped economic opportunities, with consumer spending expected to reach $2.1 trillion by 2025 (McKinsey, 2017). But despite the progress of mobile money schemes, almost nine in ten retail transactions still happen in cash, via informal channels like kiosks and open-air markets and independent shops (Deloitte, 2017).
These merchants trade in cash and, as a result, they have very little data available from which to draw insights, drive sales and improve trade. For distributors and multinationals, this means that achieving the data and insights required for success is almost impossible. The supply chains that serve these markets are archaic, relying on analogue infrastructure and tools that increase friction and reduce trade. With a fragmented supply chain that is unable to share information quickly and accurately, each stakeholder doesn’t have the right data to make better decisions regarding how goods and services can be better distributed and financed to improve profits.
The only data available comes from the sale of airtime, prepaid services or bill payments such as for TV, broadband data and utilities. Nomanini’s platform analyses those transactions, creating more fluidity and trust between both merchants and distributors but also unlocking credit flows from financial institutions, such as Standard Bank, as reduced risk assessments and steady, predictable returns are factored in. Distributors can also ensure merchants have the goods and services they need to deliver strong returns. All this increases transparency and lubricates the channel with capital, driving scale in a low margin economy and unlocking the latent potential of informal retail trade in Africa.
For a full case study looking at the Fintech and the Fragmented Economy in Africa, see here: https://nomanini.com/case-study/
As the pioneering fintech platform for the informal retail ecosystem, Nomanini connects merchants and distributors to each other and global service providers, integrating payments, working capital, and data analytics to unlock the latent potential of Africa’s economy.
Nomanini turns any mobile device into a retail point-of-sale solution for informal merchants that is connected to an interoperable merchant wallet. The interoperable merchant wallet allows merchants to offer a broad range of digital banking (including cash-in/cash-out), mobile, utility and entertainment services to their customers boosting competitiveness. In turn, digital service providers rapidly increase the scale and reach of their offerings. By generating real-time insights based on transaction data, distributors using the platform gain a single view of their merchant network, ensuring inventory is where it is needed most to improve sales. Distributors can also begin to accept payments for goods electronically, eliminating the risk and inefficiency of collecting cash. With data analytics, Nomanini helps extend working capital loans to merchants via distributors allowing them to invest in inventory to grow their businesses. The increased volume of goods and services set against reduced operational friction increases the profits for all platform participants.
Headquartered in Cape Town and founded in 2011, Nomanini has partnered with Standard Bank Group.
For more information, please visit https://www.nomanini.com
About Standard Bank
Standard Bank Group is the largest African bank by assets with a unique footprint across 20 African countries. Headquartered in Johannesburg, South Africa.
Standard Bank has a 156-year history in South Africa and started building a franchise outside southern Africa in the early 1990s.
Our strategic position, which enables us to connect Africa to other select emerging markets as well as pools of capital in developed markets, and our balanced portfolio of businesses, provide significant opportunities for growth.
The group has over 53 000 employees, approximately 1 200 branches and over 9 000 ATMs on the African continent, which enable it to deliver a complete range of services across personal and business banking, corporate and investment banking and wealth management.
Headline earnings for 2018 were R27.9 billion (about USD2.1 billion) and total assets were R2.1 trillion (about USD148 billion). Standard Bank’s market capitalisation at 31 December 2018 was R289 billion (USD20 billion).
The group’s largest shareholder is the Industrial and Commercial Bank of China (ICBC), the world’s largest bank, with a 20,1% shareholding. In addition, Standard Bank Group and ICBC share a strategic partnership that facilitates trade and deal flow between Africa, China and select emerging markets.