In a move to enhance financial accessibility, Yango has partnered with Yabx and COFINA to introduce a new in-app digital lending service in Côte d’Ivoire, called Driver Cash Advance Service.
In the first phase, the service is exclusively offered to Yango's partners' drivers, with plans to expand to consumers (riders), food delivery agents and merchants.
Beneficiaries will have instant access to up to XOF 300,000 (USD 500) cash advances and flexible repayment options of over two to eight weeks.
Overview of the Partnership
Yango, a subsidiary of Yango Group, has established itself as a trusted platform in Côte d’Ivoire, managing millions of rides and deliveries each month. Yango is active in various sectors, including transportation, logistics, and food delivery.
The partnership with COFINA, a leading meso-finance institution, and Yabx, an embedded finance platform, marks a significant step towards improving financial inclusion for underserved segments of the population.
Meso-finance is a relatively new concept in the financing world: it offers loans starting from an amount of 1,000 euro and are specifically meant for small-and medium-sized enterprises.
Kadotien Soro, Country Manager of Yango in Côte d’Ivoire, expressed enthusiasm about the partnership, stating that it aims to empower entrepreneurs and support drivers in accessing financial assistance to grow their businesses. This initiative is expected to enhance the overall experience for users on the platform.
The Driver Cash Advance Service
The newly launched Driver Cash Advance service offers several benefits:
- Instant Access: Drivers can receive cash advances quickly, allowing them to manage their cash flow effectively.
- Flexible Terms: With repayment options ranging from two to eight weeks, drivers can choose a plan that suits their financial situation.
- Targeted Support: Initially focused on Yango’s partner drivers, the service will soon be available to a broader audience, including riders and merchants.
Leveraging Technology for Financial Inclusion
At the heart of this initiative is Yabx’s Lending-as-a-Service (LaaS) platform, which utilises AI and machine learning to create credit profiles for individuals who lack traditional credit histories. This technology enables:
- Real-Time Cash Advances: Drivers can access funds instantly through the Yango app.
- Simplified Application Process: The integration of lending services into the app streamlines the borrowing experience.
- Data-Driven Lending: By analysing digital footprints, Yabx builds detailed financial identities for borrowers, facilitating access to credit.
Puneet Chopra, Chief Growth Officer at Yabx, highlighted the transformative potential of embedded lending in underserved regions, stating that it could significantly contribute to a more sustainable gig economy across Africa.
COFINA’s Role in the Initiative
COFINA plays a crucial role in providing the necessary financing for the Driver Cash Advance service. As a leader in meso-finance in West and Central Africa, COFINA is dedicated to promoting financial inclusion by supporting small and medium-sized enterprises (SMEs) and entrepreneurs. Amed Sié Toure, Managing Director of COFINA Côte d’Ivoire, emphasised the importance of this partnership in advancing inclusive economic growth and strengthening the digital economy in the region.
