Wakanda Credit Limited

Company Overview and Operational Footprint in Nigeria

Wakanda Credit Limited, incorporated under Nigeria's Companies and Allied Matters Act with registration number RC 1456789, has rapidly grown since its founding in 2018. The company operates as a digitally driven lending platform, primarily targeting urban salaried employees seeking short-term personal credit and small and medium-sized enterprises, or SMEs, that often struggle to secure traditional bank loans due to collateral requirements. This strategic focus addresses critical financial needs within the Nigerian economy.

The company's ownership structure is predominantly private, with founder and Chief Executive Officer Chidi Okonkwo holding a 45% stake. A consortium of regional angel investors collectively owns 35%, while a UK-based impact-investment fund holds the remaining 20%, though this portion remains unverified. Key executives, including Aisha Bello as Chief Operating Officer and Ibrahim Musa as Chief Credit Officer, lead the company's strategic and operational functions, supported by a strong technology team and an international Chief Financial Officer, David Zhang.

Wakanda Credit Limited generates revenue through a combination of interest charges on loans, upfront origination fees, and penalties for late payments. While its core business model is digital, the company maintains a physical presence through branches in major economic hubs such as Lagos, Abuja, and Port Harcourt. This hybrid approach allows them to cater to both tech-savvy users and those who prefer in-person interactions. Digitally, its reach extends across all 36 states and the Federal Capital Territory, Abuja, ensuring broad accessibility for its financial services.

Wakanda Credit's Loan Products, Rates, and Terms

Wakanda Credit Limited offers a diverse suite of lending products designed to meet various financial needs, from urgent personal cash requirements to business expansion. Understanding the specific terms associated with each product is crucial for potential borrowers.

Loan Products Offered:

• Personal Loans: These are unsecured loans tailored for salaried and wage earners, providing quick access to funds without requiring collateral.
• SME Business Loans: Designed for small and medium enterprises, these loans offer working capital and asset financing to support business growth and operational needs.
• Salary-Backed Loans: These loans come with discounted rates and are repaid directly via payroll deductions, offering a streamlined repayment process for employees.
• Emergency Cash Advances: Small, instant loans intended to cover unforeseen immediate financial needs.

Loan Amounts and Repayment:

The minimum loan amount across all products is ₦15,000, which is approximately equivalent to USD 16. For personal loans, the maximum amount available is ₦1,500,000 (around USD 1,600). SME business loans, reflecting larger capital needs, can go up to ₦10,000,000 (approximately USD 10,700). Repayment periods vary, with short-term options ranging from 30 to 90 days, medium-term loans from 3 to 12 months, and SME loans offering more extended repayment windows of up to 24 months.

Interest Rates and Fees:

Wakanda Credit Limited's interest rates are competitive within the digital lending space, but borrowers must pay close attention to the Annual Percentage Rate, or APR, which reflects the total cost of borrowing over a year. Here is a breakdown:

• Personal Loans: Monthly interest rates range from 4% to 6%, translating to an approximate APR of 51% to 79%.
• SME Loans: These carry monthly interest rates of 3.5% to 5%, with an estimated APR of 45% to 67%.
• Salary-Backed Loans: A flat monthly interest rate of 3% is applied, resulting in an approximate APR of 42%.

Beyond interest, borrowers should be aware of the following fees:

• Origination Fee: A 2% fee is charged on the loan amount and is deducted upfront.
• Processing Fee: A flat fee of ₦1,000 is applied to each loan.
• Late Payment Fee: Should a payment be delayed, a penalty of ₦500 plus 1% of the overdue balance is charged per week.

Regarding collateral, personal loans are typically unsecured. However, for SME loans exceeding ₦2 million, Wakanda Credit Limited requires a registered asset charge on business equipment or inventory, providing a layer of security for larger credit facilities.

Application Process, Technology, and User Experience

Wakanda Credit Limited has streamlined its application and onboarding process, leveraging technology to make borrowing accessible and efficient. Potential borrowers can apply through multiple channels:

• The dedicated mobile application, available on both iOS and Android platforms.
• Their responsive website portal, which offers a user-friendly interface.
• Physical branches located in Lagos, Abuja, and Port Harcourt for those who prefer in-person assistance.

The Know Your Customer, or KYC, and onboarding process are largely digital. This involves digital identity verification using integration with the National Identification Number, NIN, and Bank Verification Number, BVN. Applicants are also required to upload a utility bill or an employment letter. The system incorporates instant face-match technology and Optical Character Recognition, OCR, for document verification, speeding up the approval process.

Wakanda Credit's credit scoring and underwriting process utilizes a proprietary algorithm. This algorithm combines various data points, including credit bureau data, BVN history, smartphone metadata, and social-graph analytics, to assess an applicant's creditworthiness. For loan amounts exceeding ₦2 million, a manual review by credit officers is also conducted to ensure thorough due diligence.

Once approved, loan disbursements are quick and convenient. Funds can be transferred directly to a bank account via the Nigeria Inter-Bank Settlement System Instant Payment, NIP, system, or sent to mobile money wallets such as Paga and MTN MoMo. Cash pickup options are also available at partnered kiosks, offering flexibility to borrowers.

The Wakanda Credit mobile application is a cornerstone of its service delivery. It boasts a 4.3-star rating on Google Play from over 10,000 reviews and a 4.7-star rating on the Apple App Store from over 2,000 reviews. Key features include an instant loan quote calculator, a one-click application process, a comprehensive portfolio dashboard for tracking loans, and in-app chat support. While users generally praise its speed and simplicity, some Google Play reviews mention occasional disbursement delays and app crashes on older Android versions.

Customer service is accessible via a 24/7 in-app chat, with an average first-response time of two minutes. A toll-free hotline is also available during business hours for direct assistance. For collection and recovery, Wakanda Credit employs automated debit instructions, particularly for salary-backed loans, and utilizes SMS and in-app payment reminders. For delinquent SME accounts, field recovery agents are deployed, and defaulters are listed with credit bureaus, impacting their future borrowing capacity.

Market Position, Competition, and Financial Performance

Wakanda Credit Limited holds an estimated 5% share of Nigeria's dynamic digital microloan market, positioning itself as a significant player. The company strategically places itself between pure-play fintech lenders, known for their fully automated processes, and traditional microfinance banks, which often have a broader product suite but slower processing times. This hybrid approach aims to capture a wide range of borrowers seeking speed and reliability.

The competitive landscape in Nigeria's digital lending sector is robust. Wakanda Credit differentiates itself from key competitors in several ways:

• FairMoney: Known for its highly automated underwriting and faster onboarding, FairMoney often appeals to users prioritizing speed above all else.
• Branch: While offering lower minimum loan amounts, Branch typically features higher Annual Percentage Rates, making Wakanda Credit's rates potentially more attractive for certain segments.
• RenMoney: This competitor boasts a more extensive physical network and a broader product suite, but its processes can be slower compared to Wakanda Credit's digital-first approach.

Wakanda Credit has demonstrated impressive growth, with a Compound Annual Growth Rate, CAGR, of 80% in its loan book since 2021. The company has ambitious expansion plans, targeting entry into the Ghanaian and Kenyan markets by 2026, a move that, if successful, would significantly broaden its regional influence. Strategic partnerships, such as telco integration with MTN for customer acquisition and API partnerships with Access Bank and United Bank for Africa, UBA, for payroll deductions, underpin its growth and operational efficiency.

Financially, Wakanda Credit Limited has shown strong performance. Its estimated revenue for the fiscal year 2024 reached ₦3 billion, with profitability achieved in the second half of 2023. The company has successfully attracted significant investment, including a seed round of USD 500,000 in 2018, a Series A round of USD 5 million led by a Pan-African Venture Capital Fund in 2021, and a Series B round of USD 15 million from development finance institutions in 2023. These funding rounds highlight investor confidence in its business model and growth potential.

The company's total outstanding loan portfolio stands at ₦12 billion, equivalent to approximately USD 12.8 million, with the large business segment accounting for ₦4 billion. While its gross default rate is 12%, the net charge-off rate, after recoveries, is maintained at 4%. Wakanda Credit adheres to robust risk management practices, including provisioning coverage of 120% per International Financial Reporting Standards 9, IFRS 9, ensuring adequate capital reserves against potential loan losses.

Navigating Wakanda Credit: Practical Advice for Borrowers

For individuals and small business owners in Nigeria considering Wakanda Credit Limited for their financial needs, understanding how to best utilize their services and mitigate potential risks is paramount. Here is some practical advice to ensure a smooth and beneficial borrowing experience:

• Understand All Terms and Conditions: Before accepting any loan offer, meticulously review the interest rates, fees (origination, processing, late payment), and repayment schedule. The Annual Percentage Rate, APR, is particularly important as it reflects the true annual cost of your loan, including all charges. Wakanda Credit prides itself on transparent disclosures, so ensure you leverage this.
• Assess Your Repayment Capacity: Borrow only what you can comfortably repay within the stipulated timeframe. Delays in repayment not only incur additional late payment fees (₦500 plus 1% of overdue balance per week) but can also lead to negative reporting to credit bureaus, severely impacting your future access to credit from any financial institution.
• Leverage the Mobile App Features: The Wakanda Credit mobile application offers features like an instant quote and a portfolio dashboard. Use these tools to plan your borrowing, monitor your loan status, and track upcoming payments. The in-app chat support can also be a quick way to get assistance.
• Be Mindful of Collateral Requirements: While personal loans are unsecured, SME loans exceeding ₦2 million require a registered asset charge. Understand what assets are being pledged and the implications should you default on the loan.
• Compare with Competitors: Before committing, it is wise to compare Wakanda Credit's offerings with those of its competitors like FairMoney, Branch, and RenMoney. Each platform has its unique strengths regarding interest rates, loan amounts, and processing speed. Choosing the one that best aligns with your specific needs and risk tolerance is crucial.
• Address Customer Service Concerns Proactively: Some customer reviews on Google Play mention occasional difficulty reaching customer service during peak hours. If you anticipate needing support, especially for critical issues, try to contact them during off-peak times or use the 24/7 in-app chat which generally has a faster first response time.
• Ensure App Compatibility: If using an older Android device, be aware of reported app crashes. Ensure your device and operating system are up-to-date to minimize technical glitches that could hinder your loan application or management.
• Understand Regulatory Protection: Wakanda Credit Limited is licensed by the Central Bank of Nigeria as a Microfinance Institution, Category B, and is subject to its regulatory oversight. This provides a layer of consumer protection. In case of unresolved disputes, you can also engage with the Consumer Protection Council’s dispute resolution portal.

By following this advice, potential borrowers can make informed decisions, manage their finances effectively, and leverage Wakanda Credit Limited's digital lending solutions responsibly to achieve their personal or business objectives.