Unifi is Transforming Zambia’s Credit Landscape

An East African market that is underserved by personal loan providers is where Zambia’s Unifi hopes to reinvent personal credit.

Unifi, which advertises itself as “making life easier,” specializes in providing unsecured personal loans through branches and online throughout East Africa.

Michiel le Roux, co-founder and group leader of Unifi, adds, “I think keeping it simple has been crucial. Small, short-term personal loans were our first focus, and we have since concentrated on providing them expertly by fusing technology, data analytics, and top-notch customer care. We’re thrilled to see that our customers are really responding to it and that we’re on to something. In markets where it has historically been difficult to access personal finance, our strategy mixes innovation with a human touch to make our offering simpler and faster.

The company was founded through the acquisition and merger of Cobol Finance, a South African internet lender founded in 2004 and Unity Finance, a branch-based lender operating in Zambia since 2006. In 2020, the companies changed their names to Unifi, and the strengths of both industries converged.

Today, Unifi’s branches offer a solution that stands out from the competition thanks to Cobol’s cutting-edge loans management technology combined with excellent face-to-face customer contacts.

Customers can receive cash from Unifi in as little as 20 minutes at the branch locations, and within minutes of submitting an online application, money is sent directly to their bank accounts.

The Uniapp, a USSD-based app, expands Unifi’s physical presence and enables returning clients to apply for Unifi loans using their phones or carry out other tasks like checking their balances and making instalment payments using mobile money.

When applying for their first loan from Unifi, new customers must go to a branch and have their fingerprints taken. Thereafter, they can simply transact through the Uniapp if they so want.

In addition to preventing fraud, the initial branch check-in guarantees that new clients are informed about the product and are set up correctly for future self-service via the app.

“While customers in East Africa are accustomed to and comfortable with mobile transactions, some customers still prefer to conduct business in person at a branch or prefer to deal with a consultant personally when they have a problem. The branches give people that choice and are crucial for bringing on new clients, according to Le Roux.

Customers now find it simpler to make loan payments thanks to Unifi’s branch/app combination, which helps with collection efforts. Customers have the option of paying in cash at a branch, using an EFT, a debit order, or mobile money using the Uniapp.

It has also given Unifi the opportunity to place more faith in its clients, who are now empowered to manage their own finances, in regions where payroll deductions are customary.

Although the Uniapp has sped up Unifi’s expansion, the lender insists that it won’t close any of its branches since it strongly believes in providing excellent customer service. And many of the small, thoughtful details that have characterized Unifi as unique from the beginning are crucial to the company’s customer service experience today. Every new customer receives a present, such as a 25 kg sack of maize flour, and branch visitors are welcomed with a refreshing drink.

The business has increased its customer base by 43% in the past year since its founding 18 years ago. The business has increased its customer base by 43% in the past year since its founding 18 years ago. In Zambia, there are currently 34 Unifi locations, in South Africa, the number of clients using the online-only service has more than doubled in the past year, and Unifi Uganda currently has six branches and is expanding. In Kenya, Unifi has also made its debut.

“Things like our new customer presents may seem insignificant at first glance, but they are a part of the personal touch that distinguishes us in a market that has a negative reputation for taking advantage of its clients. Maintaining the cleanliness and order of our branches is just one little way we can respect our clients and uphold our principle of dignity. The further work is worthwhile. According to Le Roux, our consumers appear to enjoy the fact that they can apply for a loan on our digital platforms in just a few minutes.