In this video, Technology & Finance YouTuber, Fisayo Fosudo interviews Dayo Ademola, the Managing Director of Branch Nigeria.


https://www.youtube.com/watch?v=EGxhszW8Qwk

Branch is an app that issues loans to customers in India, Tanzania, Kenya and Nigeria. According to research data, Nigerians have been issued loans by them valued at almost 21 billion naira in 2019, and around 13 billion in 2020, a little lower due to the pandemic.

As seen on the Google Playstore, Branch has over 20 million downloads and 350 thousand reviews and they have an investment section of their app where you can earn 20% of what you invested, per year (not per month or lesser). This interest is paid weekly, every Monday according to Dayo, the MD of Branch and they can be withdrawn at any time.

Fisayo asked the MD how Branch is able to achieve such high interest rates considering that is much higher than the 18% inflation rate and higher than the 11.5% Monetary Policy Rate in Nigeria. Branch revealed that they are able to do this because of 2 major things:

Technology: Branch maintains a lower cost structure with the help of technology and artificial intelligence compared to traditional banks which have physical buildings and have to spend billions of Naira on diesel. Branch then passes these savings onto the customer.

Long Term Investors: Branch is also backed by global investors like Andreessen Horowitz' a16z, who backed Facebook, Twitter and other global platforms. They are also backed by Visa which has built one of the biggest Global trusted financial services. This In turn helps Branch charge lesser fees, be more convenient and valuable upfront compared to traditional banks.

The MD of Branch further mentions in the Interview with Fisayo as seen in the video above that they do not invest in high-risk financial instruments that are volatile and unstable but rather low-risk securities.

Branch is also licensed by the Central Bank of Nigeria to provide fund management services and they also worked with other licensed fund managers.

Have you ever taken a loan before or have you used Branch before? What has your experience been like?