SympliFi, a U.K.-based financial technology startup with current operations in Zimbabwe, Nigeria and Tanzania, announced the launch of its innovative FinTech platform designed to empower diaspora around the world with easier access to financial solutions that go far beyond the traditional remittance/money transfer model. By using this one-of-a-kind solution, foreign-born residents living in countries such as the U.K. can now enable their families back home to easily access sustainable financial services for productive uses like entrepreneurship, education financing, savings and healthcare.
Traditionally, remittances/money transfers have been the singular form of financial services available for the diaspora to support their relatives back home. However, at SympliFi, the company focuses on what the funds will be used for in the home country and seamlessly connects the diaspora with a local financial institution to directly deliver the underlying service instead, in a more cost effective and efficient way. There is no other service in the marketplace like this.
How It Works:
In a traditional remittance model, a sender would typically use an international money transfer service to send money to cover the cost of school fees or to support a small business for a relative back home. With SympliFi, instead of sending the money and incurring an expensive transfer fee, the diaspora can enable the relative to easily get an affordable loan from their local financial institution to cover the costs themselves, by simply agreeing to back the loan. SympliFi's digital platform connects the diaspora and the financial institution in the home country to facilitate this transaction. The diaspora can complete the process over their mobile phone, in a matter of minutes, with no fees. No money has been transferred, and the financial objective has been achieved.
More importantly, SympliFi's unique and innovative platform enables the beneficiary to get their foot in the door to establish and build valuable credit history, which can be transformational in advancing their long-term financial well-being. As access to credit remains stubbornly low in developing markets, SympliFi's solution has the potential to address the issue at scale, which could significantly bolster economic development in developing countries.
SympliFi launched its first partnership with Educate, a Zimbabwe-based education finance company, to enable Zimbabweans based in the United Kingdom to help their family in Zimbabwe gain access to affordable education financing solutions.
"We are excited to launch SympliFi as we believe it is time to reimagine how diaspora provide financial support to family in their home country, by leveraging technology in a more effective and sustainable way. Our solution unlocks borders and creates financial bridges between diaspora and their home countries, in a way that does not exist today," said Maurice Iwunze, co-founder of SympliFi.
"Our platform will enable us to offer diaspora a suite of financial solutions that enable long term access to business loans, education financing, electricity, healthcare, insurance and more," added Gregoire Lecomte, co-founder.
In addition to Zimbabwe, Nigeria and Tanzania, SympliFi will be adding new countries and lending partners across Africa and other regions of the globe.