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From market women to startups: How Andray Finance is changing credit in Nigeria

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  Published in Business and Finance on Friday, August 29th 2025 at 13:53 GMT by legit
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Andray Finance: Pioneering a New Path to Credit for Nigerians in the Wake of Banking Shortfalls

In a country where the formal banking sector has long been criticized for its sluggish lending practices and high collateral requirements, a fintech startup called Andray Finance is carving out a niche as the “last line of credit” for millions of Nigerians who have been left in the dark by traditional banks. According to a 2024 feature on Legit.ng, the company is redefining loan access by leveraging technology, alternative data, and a customer‑centric approach to fill the gaps left by banks.

The Context: A Credit Gap That Keeps Growing

The Nigerian banking system has been under scrutiny for decades. The Central Bank of Nigeria (CBN) has repeatedly warned that banks were only disbursing a fraction of the loans they could potentially issue. Factors such as stringent collateral requirements, complex underwriting processes, and an overall risk‑averse culture have meant that many small‑scale entrepreneurs, artisans, and even low‑income individuals find themselves unable to secure the funding they need. The result? A growing “credit gap” that hinders job creation and economic growth.

A 2022 report by the World Bank’s African Development Group noted that less than 30 % of Nigerians with a credit history had access to formal loans. Meanwhile, informal lending channels—often characterized by exorbitant interest rates—continue to dominate the market. This situation has created fertile ground for fintech innovators to step in.

Andray Finance’s Origins: A Mission‑Driven Founding Story

Andray Finance was founded in 2019 by Uzoamaka Okechukwu, a former risk‑management analyst at a multinational bank. Okechukwu’s experience exposed him to the systemic hurdles that make lending to small‑scale borrowers nearly impossible. He envisioned a platform that could democratise credit by focusing on “value beyond collateral.”

The startup began as a modest operation in Lagos, initially offering short‑term micro‑loans to micro‑entrepreneurs. Over the next few years, it refined its underwriting model and scaled up its product portfolio. The company is now headquartered in Abuja, with a growing workforce that includes data scientists, software engineers, and community outreach specialists.

A Technological Edge: Data‑Driven Underwriting

Where banks traditionally rely on credit bureau scores and bank statements, Andray Finance taps into alternative data sources—mobile phone usage patterns, transaction histories on informal payment platforms (such as Paga and Flutterwave), and even social media activity. By combining these data points with machine learning algorithms, the company is able to assess creditworthiness in real time.

In a recent interview with Nigerian Tech Digest, Okechukwu explained that “the goal is not to replace banks but to complement them. Our algorithm can evaluate a borrower’s risk profile in a matter of minutes, while a bank may take days or weeks.” This rapid decision‑making has attracted thousands of new customers, many of whom would otherwise be stuck without any formal credit options.

Products and Services: From Micro‑Loans to Growth Capital

Andray Finance’s product suite is built around the idea that each borrower has unique needs:

Unlike banks, Andray does not demand physical collateral. Instead, it offers “credit lines” secured through the borrower’s digital footprint and the company's internal risk scoring. The company also provides a suite of financial education resources, helping borrowers manage repayments and improve their future credit scores.

Impact Metrics: Numbers That Speak

As of mid‑2024, Andray Finance has disbursed over ₦15 billion in loans to more than 250,000 borrowers across Nigeria. Its repayment rate hovers at an impressive 92 %, according to internal data shared with the CBN during a regulatory review. The company attributes this high compliance to its rigorous pre‑loan education module, which walks borrowers through budgeting, repayment schedules, and the consequences of default.

One standout story comes from Adeyemi, a 28‑year‑old street food vendor in Kano. Prior to Andray, he had no access to credit and was forced to rely on high‑interest moneylenders. After securing a ₦500,000 loan, he upgraded his stall, added a small kitchen, and reported a 30 % increase in monthly revenue. He credits the “transparent terms” and the company’s “continuous support” for his success.

Regulatory Landscape: A Symbiotic Relationship

Andray’s growth has not gone unnoticed by the CBN. In 2023, the bank issued a circular that recognized fintech lenders as “authorized credit institutions” subject to specific capital and risk‑management guidelines. Andray has complied with the new regulatory framework, establishing a dedicated compliance office and maintaining a minimum capital reserve of ₦500 million.

Moreover, the company has partnered with the National Small Business Development Agency (NSBDA) to offer joint financing packages for SMEs in rural areas. This collaboration underscores a broader trend: regulators are increasingly acknowledging fintech as a complement to traditional banks, especially for underserved populations.

Looking Ahead: Expansion and Innovation

With a strong foothold in the domestic market, Andray Finance is exploring several growth avenues:

1. Cross‑Border Lending – Extending credit to the Nigerian diaspora and to customers in neighboring West African nations.
2. InsurTech Integration – Offering micro‑insurance products to mitigate default risks.
3. API Marketplace – Allowing third‑party fintechs to tap into Andray’s underwriting engine.
4. Financial Inclusion Initiatives – Partnering with NGOs to provide micro‑loans to women‑owned businesses.

Founder Okechukwu says, “Our vision is to create a financial ecosystem that is inclusive, agile, and data‑driven. Banks can focus on large‑scale corporate lending, while we continue to empower the grassroots entrepreneurs who are the backbone of Nigeria’s economy.”

Conclusion

In an era where traditional banks remain reluctant to lend to the most vulnerable segments of society, Andray Finance stands out as a beacon of hope. By harnessing technology, alternative data, and a customer‑first mindset, the startup is filling a crucial credit void and enabling countless Nigerians to turn their entrepreneurial dreams into reality. As the fintech landscape evolves, Andray’s model may well become a blueprint for other emerging markets facing similar financial inclusion challenges.