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| OurPass Secures Microfinance Banking License, Set to Transform Business Banking in Nigeria Image credit: TechCrunch |
License Acquisition and Launch Plans
Five months after securing an approval in principle, OurPass, the e-commerce one-click checkout company turned business banking service, has obtained a Microfinance banking license from Nigeria's Central Bank. Starting operations in September 2024, OurPass will offer business accounts, loans, and business management tools tailored for businesses.
Competitive Landscape and Focus
Once operational, OurPass will join Nigeria's competitive business banking space alongside established players like Brass, Moniepoint, and Prospa. However, unlike its competitors that primarily cater to small businesses, OurPass will target large corporates such as Shoprite, Medplus, UAC Foods, and SPAR. "We are focusing on providing credits for large corporates, specifically inventory financing, asset financing, and invoice discounting," said Samuel Eze, the company's CEO.
Integrations and Preparations
According to Eze, “We have done all the major integrations, we are left with one last integration with NIBSS [Nigeria Interbank Settlement System].” This final step will enable OurPass to fully launch its services.
Physical and Digital Presence
While competitors primarily maintain a digital presence, OurPass plans to establish a physical presence in all 774 local government areas across Nigeria. The bank will target business clusters, such as computer villages and open markets, to provide more accessible banking services. Specific details of this implementation were not disclosed by Eze.
Product Offerings and Profitability Goals
OurPass intends to release its banking-as-a-service product by the end of the year and develop specialized products for creatives. Eze claims the startup aims to be profitable within the next 12 months. "We are somewhere in between a traditional bank and a fintech," he noted, emphasizing the company's hybrid approach.
Business Strategy and Vision
OurPass aims to combine the reliability and financial prudence of traditional banks with the speed and user-centricity of fintechs. "At the heart of our business strategy is sustenance. We are constantly thinking about revenue. We are now focused on achieving the best net income ratio," Eze added.
With a focus on sustainability, revenue generation, and customer-centric services, OurPass is set to redefine the business banking landscape in Nigeria.
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