Denis Opudo
Lenders and investors globally prefer the use of peer to peer leading strategy. Rainfin disrupts the loan industry in South Africa by the use of crowdfunding model. It has also concluded the acquisition of 4 Africa Exchange Proprietary Limited (4AX). The 4AX company is one of the tactical stakes in South Africa. 4AX is a stock exchange substitute. It is a platform that enhances access and participation of many customers. The 4AX CEO, Fay Mukaddam emphasized that the market is under-serviced in South Africa. The partnership between 4AX and RainFin will assist 4AX to apply crowdfunding principle. Another benefit comprises of the development of credit marketing platforms pioneered by RainFin.
Additionally, the company will improve products regulation. This occurred through the use of RainFin platforms plus the company regulated exchange institutions. RainFin and 4AX strategic partnership will aid in serving the state-owned enterprises. Other service sectors are government institutions and the global conglomerates. This collaboration will catalyze the 4th industrial revolution in South Africa. This emanates from the continuous disruption of the financial service industry in the country.
According to the RainFin CEO, Sean Emery, there exist wide market opportunities in direct debit card application. Some of the tools required include self-origination, book-building, and cost-effective arranging. Other tools are supplied expansion and private placement. He noted that the collective initiative generated a typical market fit product. The rapid growth of RainFin is as a result of strategic partnerships. For instance, ABSA collaboration resulted in a strong foundation for a mass lending initiative. The company was able to increase daily loan process up to USD 83 K in 2016 when ABSA pulled out.
The sale of 49 percent of RainFin assets gave it more strength. It helped the company to partner with other institutional-based lenders. It also assisted in the accumulation of pension funds and acquisition of asset managers. Moreover, the exit of ABSA was a door-opener for 30 percent LeBashe investment acquisition last year. This improved the performance of RainFin in the financial service industry.
