According to Women’s World Banking, Nigeria has a significant and underbanked market, relying on a population consisting primarily of self-employed and economically active women with limited economic opportunities. Their research indicates a substantial gender gap in financial inclusion within the country, with only 35% of women and 55% of men having access to financial services.
In Nigeria, only 33% of women possess bank accounts, resulting in their exclusion from digital services and wealth-creation opportunities. Ife Durosimi-Etti, the founder of Herconomy, believes that their solution has the potential to address this issue.
The remarkable success of this inclusive tech startup represents a significant milestone in empowering women within the African financial sector. Herconomy, Nigeria’s first women-focused bank, surprised the tech ecosystem with its funding story last year. The company managed to raise $600,000 in funding to scale its SaaS product, offering women continued access to career opportunities and discounts from selected brands. Additionally, they have made a significant shift toward becoming a fintech company.
Furthermore, Herconomy was selected as one of the top 25 recipients of last year’s $4 million Black Founders Fund, with 72% of the group being led or co-founded by women. This highlights the crucial role women play in shaping Africa’s startup ecosystem. The funding has provided the bank with the necessary capital to expand into new markets, accelerating economic opportunities and job creation. Durosimi-Etti commented on this development, stating, “With the significant decrease in African tech investment in 2023, funds like these could play a crucial role in helping startups in Africa sustain their growth trajectory and bring their innovative solutions to a broader audience.” She further added, “From accessible healthcare to efficient logistics, to innovative fintech solutions, we are harnessing the power of technology to address some of Africa’s most pressing challenges. We are breaking new ground in the fintech sector with our goal of becoming Africa’s first women-focused bank.” Herconomy has been awarded the fund, as well as up to $200,000 in cloud credits, ad support, one-on-one mentoring by industry experts, and invaluable connections within Google’s network.
Herconomy’s slogan is “save, earn, learn, connect, and thrive.” The company believes that saving is the first step towards financial balance and wealth management for women. To solidify this belief, Herconomy has launched a mobile savings app that allows women to save and earn up to 10% annual interest on their savings.
The company assists women in achieving their financial goals through various challenges, encouraging them to meet their targets. Their saving challenge attracted 500 women participants who collectively saved well over $100,000. According to Herconomy, the app, which was piloted in April 2022, has gained over 5,000 active savers.
// Staff – Writer
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