Lion Bank launches a digital services app called “Alegnta” that allows it to provide digital credit services without collateral.
In a launching ceremony held on April 3, 2023, at the Hyatt Regency Hotel, the bank announced that it has allocated a 500 million birr revolving fund to be used for the digital loan service, which mainly has six different products.
Daniel Tekeste, president of the bank, explained that the service includes Alegnta salary loans, Alegnta for ride and taxi drivers, Alegnta for small and medium enterprises, Alegnta for electronics and furniture purchases, and Alegnta for those who need financial support.
“The bank is partnering with Quantum Technology Solutions on the development of the Alegnta service application, and Alegnta stands to serve citizens who are managed by salary and daily income,” said the president.
The president added that the digital loan service is a collateral-free service and that any customer with a savings account can access the service only by using their mobile phone. According to the bank, the loan approval process is done in a way that takes into account the income status and repayment capacity of the customers, and 500 million birr have been allocated for the purpose.
Sofonias Embibel, Chief Executive Officer of Quantum Technology Solutions, who developed the application, said that Alegnta was made to focus on credit services in consideration of the growing needs of customers. “Although quantum technology has been launched recently, it is now developing several applications for various organizations and financial institutions to make everything simple and convenient for their operation and services,” Sofonias said.
Currently, customers can access loans and make payments to overcome the financial problems that exist in between salary payments on the Alegnta Salary Loan Service, which has been put into operation. It’s been stated that the remaining four credit services will be put into operation until June, and the full operation of this system will benefit the customers of other banks as well.
In recent times, local private banks have been introducing digital lending services, especially in the last year. Although digital payment is gaining momentum in Ethiopia, it is said that it is not enough for the wider Ethiopian society and is still in its infancy.