Pesabits

Today I will be sharing my story on how AyaHQ (Techstars '23) x Lisk incubation program has mentored me🙃 for the last 3 months and how they shaped the future of our startup Pesabits | P2P lending 📈 . Now with my strong team at Pesabits we should be able to easily enter the market with great wisdom🛡️ from those that have done it before💪 Let's meet at X space at 6 PM EAT Time. https://lnkd.in/dV8fdB2a

Digital lending has emerged as a transformative force in Sub-Saharan Africa's financial landscape, leveraging mobile technology and digital payments to provide financial services to the traditionally unbanked population. However, this rapid expansion has brought significant challenges, particularly in the form of predatory lending practices, with payday lenders charging excessive interest rates and employing aggressive collection tactics that mirror traditional loan sharks such as excessive interest rates, aggressive collection tactics, and privacy violations through unauthorized contact with borrowers' families and friends, potentially trapping vulnerable borrowers in cycles of debt. The sector's evolution depends on striking a delicate balance between innovation and regulation. Digital payments are expected to grow from $3.5 billion in 2021 to between $14 billion and $20 billion by 2025. The integration of instant payment systems across several African countries is facilitating real-time transactions, enhancing financial inclusion. The transformation of digital lending in Sub-Saharan Africa represents a classic case of innovation outpacing regulation, creating a complex ecosystem where financial inclusion and predatory practices coexist. With financial services revenues projected to reach $230 billion by 2025, driven by a young, urbanizing population and declining internet costs, the untapped potential remains enormous. The sector's future success will largely depend on its ability to leverage technological innovations while building robust credit assessment frameworks that go beyond traditional metrics, particularly as mobile payments are expected to grow from $3.5 billion in 2021 to between $14 billion and $20 billion by 2025