Digital lending Battleground- Access Bank gets approval for standalone lending company–

Digital lending Battleground: Access Bank gets approval for standalone lending company

The parent business of the biggest bank in Nigeria in terms of assets, Access Corporation, is about to introduce Oxygen X, a consumer loan division with the goal of reaching out to a wider market than just its current banking clientele. According to an announcement by the Nigerian Stock Exchange, Access Corporation has received preliminary approval from the Central Bank to begin operations in Nigeria, even if the launch date for Oxygen X has not been revealed.

Since Oxygen X was once known as Quickbucks, it is not a completely new product that Access Corporation is offering. After its release two years ago, the Quickbooks app has a 2.6-star rating on the Android Play Store.

Access Corporation is committed to improving its digital lending services and expanding its customer base, as evidenced by the rebranding to Oxygen X. The company wants to use data analytics and technology to give Nigerian people and small businesses easy access to financing options.

It is anticipated that Oxygen X will provide a variety of financial products through an easy-to-use mobile app, such as business and personal loans as well as other credit facilities. In order to meet the changing needs of contemporary consumers, Access Corporation is concentrating on digital lending with the goal of streamlining the borrowing process, minimizing paperwork, and providing quicker approval timeframes.

The introduction of Oxygen X fits in with Access Corporation’s larger plan to broaden its product line and meet Nigeria’s increasing need for digital financial services. .. It also highlights the bank’s initiatives to broaden its customer base and strengthen its position in the nation’s quickly changing fintech industry.

The company wants to move its 7 million users from the Quickbooks app to Oxygen, according to a person with knowledge of the company’s operations. “FairMoney and Opay extend loans to everyone, but traditional banks require you to be their customer before providing loans.”

Through the provision of a stand-alone lending app, Oxygen hopes to draw in customers without Access Bank accounts.

Access Corporation is the first financial services holding company to enter the standalone digital lending space; other holding companies have focused on fintech initiatives (such as GTCO’s Squad, Stanbic’s Zest, and Access’s Hydrogen).

Launching a stand-alone digital lending app is a part of Access Corporation’s plan to increase its clientele and capitalize on the expanding digital finance industry. The startup hopes to reach a larger audience—including people who might not have typical banking relationships—by providing convenient and accessible financial services through the use of a dedicated loan app.

The choice of Access Corporation to work with FairMoney and Opay and target Quickbooks users emphasizes the company’s emphasis on utilizing technology and partnerships to expand its clientele and offer creative financial solutions. This method fits in with the larger financial sector trend where traditional banks are working with fintech businesses more and more to improve their digital products and target underprivileged populations.

While Access Corporation keeps growing,Launching the Oxygen loan app is a big step in the company’s effort to diversify its financial offerings and increase its digital reach. This action not only shows the company’s dedication to innovation, but it also establishes it as a major participant in the changing digital banking scene.

With an increasing number of technologically literate consumers as its target market, Oxygen is poised to enter the competitive digital lending space, competing for clients with websites like Carbon and OPay. Access Corporation has taken important strategic decisions since switching to a holding company structure in 2020, including the introduction of Hydrogen and a swift expansion of its footprint throughout the continent.

According to Access Corporation CEO Herbert Wigwe, “we aim to establish our presence in 22 countries within the next five years,” during a Bloomberg interview. Afterwards, the banking division has strengthened its presence throughout the world by acquiring several banks. Access Bank announced its entry into the Asian market in November 2023, teaming up with other global firms such as TymeBank of South Africa to launch operations in the area.

Furthermore, the National Insurance Commission-regulated and licensed insurance brokerage business Megatech Insurance Brokers Ltd. was just acquired by the bank. The aforementioned advancements highlight Access Corporation’s audacious expansion plan and its endeavor to expand its global market reach.

Access Corporation has been making significant investments in fintech and digital innovation in addition to its expansion ambitions. The company’s dedication to using technology to meet changing customer needs is demonstrated by the development of Oxygen, the digital lending platform.

Oxygen wants to provide effective and individualized loan services by utilizing machine learning algorithms and data analytics. Access Corporation aims to establish itself as a prominent participant in the digital lending industry by capitalizing on the increasing need for digital financial solutions.

The transition to digital lending is in line with broader industry trends, as financial institutions understand that, in order to stay competitive in a changing market, it’s critical to diversify their services and embrace digital transformation.

scenery. Through the integration of its vast experience in traditional banking with cutting-edge digital platforms like Oxygen, Access Corporation is well-positioned to fortify its standing as a progressive and dynamic provider of financial services.

Access Corporation is well-positioned to take advantage of the opportunities given by the quickly changing financial services industry, both in Africa and globally, as it keeps growing its presence and improving its digital capabilities.

In addition to strengthening Access Corporation’s competitive edge, this strategic focus on fintech and digital innovation aims to fulfill consumer tastes that are evolving, particularly the growing need for easily accessible and convenient financial services.

The goal of Oxygen’s digital lending platform is to make borrowing easier for consumers by providing a smooth and intuitive experience. By offering features like expedited approval processes, clear terms, and customized loan alternatives, Access Corporation hopes to satisfy the changing requirements of people and companies looking for effective and adaptable finance options.

Furthermore, Access Corporation may obtain deeper insights into consumer behaviors and creditworthiness by utilizing cutting-edge technology like artificial intelligence and big data analytics. This allows for more precise risk assessments and customized lending solutions. This data-driven strategy is not only makes lending operations more efficient, but it also supports ethical and long-term lending practices.

To sum up, Access Corporation’s entry into the digital lending space through Oxygen demonstrates its dedication to embracing innovation driven by technology and satisfying the changing needs of the financial services industry. The company is well-positioned to offer a comprehensive suite of financial products that meet the various demands of its customers while promoting growth and competitiveness in the market thanks to the integration of traditional banking skills with state-of-the-art digital platforms.