Take a look at the latest headlines from Europe and the Middle East with Polly Jean Harrison, features editor of the FinTech Times.
Hi, Polly, happy Friday.
Thank you so much for joining me.
So Orange Money Group has partnered with banking as a service Fintech provider Jumo, so this will help expand Orange Money's offerings by ensuring a new microcredit solutions for um bank communities.
Can you tell us more about this partnership and how it supports greater financial inclusion?
Hello Remy.
Happy Friday.
Great to see you as always.
So yeah, Orange Money Group is a mobile financial services provider in the Middle East and Africa, and they have joined forces with Jumo.
And through this partnership, Orange Money Group is really planning to advance its financial inclusion strategy by introducing new microcredit services to its customer value proposition.
So this collaboration with Zumma really leverages their data analytics and artificial intelligence capability. refining to optimize credit allocation and reducing the cost of risk for lending to under 4% and growing sustainable portfolios.
So this strategic alliance is really going to enable the rollout of various credit products across multiple markets from a whole host of funders, creating a new microfinance marketplace for the unbanked in emerging markets.
So Orange Money Group customers will be eligible to securely request credits through their mobile devices.
Without needing a bank account or collateral, so you know, this is a really streamlined user experience that combines financial inclusion with new technology and something that obviously is really exciting, I think, especially when you're in the region.
So you know, Duma has developed a range of short term and installment loan products for consumers, merchants and distributors with a limited access to the service and using trained AI algorithms to access credit risks.
And facilitate the immediate flow of capital through their partnerships with pan African banks as well as development financial institutions.
So yeah, this is really great news and I think it's really exciting to see how companies are really working to boost financial inclusion, especially in emerging markets and the regions like um the Middle East and Africa.
So definitely a partnership that we really need to keep an eye on and hopefully more FinTech will be following suit in the coming years.
And Polly, I understand that too money apps are joining forces in order to make their services available to more customers.
So can you share more details about this launch and explain to us how it helps address the problem of unlicensed lending?
Absolutely.
So all in one Money apps, Pocket and Money are teaming up with plans to roll out Pocket's income and advance service to its customers.
So through this product launch, Monice's expanding product suite after it was acquired by Pocket in 2024, and the two companies aim to make it easier for people to access and manage financial tools that put them in control of their money.
So these solutions provide short-term credit with no interest, no hard credit checks, and automatic repayment from income, offering a safety net and reducing reliance on high. unregulated lenders.
So this launch comes after recent research found that 11% of UK adults are now actively considering turning to a loan shark, a 22% increase since 2022, as the number of providers offering loans to lower credit score customers continues to shrink.
Other pocket research also found that over half of income advanced proceeds are spent on food shopping, underlining its role in tackling day to day financial insecurity and helping customers manage their cash flow through the month in order to cover essential spending.
So, you know, it's clear that a huge swathe of people are really underserved by financial institutions, whether that's gig economy and shift workers, or just people who just could do with a little extra help.
So there's really this need for products to help whether financial.
Shocks and smooth out monthly cash flow for these people that need it.
So you know, having to turn to unlicensed or potentially dangerous lenders to just to make ends meet is something that really shouldn't be happening in 20025.
So having this income in advance should really help people manage their spending month to month and stop them from turning to these unregulated loans and hopefully make things a lot easier for them to manage as they move forward.
So again, a really exciting thing to be announced.
It's a really great partnership and one that I will definitely be keeping an eye on.
OK, Polly, well, thank you so much for bringing us the latest updates from across the Atlantic.
We'll see you back here next week.
Have a great weekend.
See you, Remy.
