The Ghanaian fintech space is witnessing a rare alignment between Silicon Valley corporate philanthropy and boots-on-the-ground digital banking. Affinity Africa, a digital bank targeting the informal sector, has secured its second round of support from the Cisco Foundation and FINCA Ventures.
The funding — the exact amount of which remains undisclosed — is structured to accelerate financial literacy and expand credit access in a market where traditional banking often stops at the gates of the formal economy.
The Strategy: Cracking the “Informal” Nut
For most digital banks in West Africa, the “unbanked” are a difficult demographic to monetize due to lack of formal documentation and volatile income streams. Affinity, founded by Tarek Mouganie, is attempting to bridge this by utilizing proprietary underwriting technology and a branchless, low-cost operating model.
The startup’s value proposition hinges on two technical milestones:
- eKYC: The first fully digital onboarding process approved in Ghana.
- Data-Driven Lending: Using non-traditional data points to assess the creditworthiness of informal workers who lack standard credit histories.
Key Performance Indicators (KPIs)
| Metric | Detail |
| Total Funding to Date | US$13 million |
| Customer Base | 125,000+ |
| Unbanked Ratio | 65% of total users |
| Gender Split | 60% Female |
| Regulatory Status | Savings & Loans license (Bank of Ghana) |
Why This Matters for the Ghanaian Market
Ghana’s central bank has historically been conservative with licensing. When Affinity received its Savings and Loans license in 2022, it was the first such permit granted in over a decade. This regulatory clearance allows Affinity to operate more like a traditional bank — taking deposits and offering a full suite of services — while maintaining the lean overhead of a tech startup.
The collaboration with the Cisco Foundation highlights a shift in how global tech giants approach African fintech. Rather than pure venture plays, these partnerships often focus on “social enterprises” that can demonstrate tangible progress in “closing the opportunity gap.”
“Affinity Africa’s success in reaching the unbanked — particularly women and informal workers — demonstrates the power of inclusive technology,” says Charu Adesnik, Executive Director of the Cisco Foundation.
The Road to Scale
Despite the momentum, the path forward is not without friction. Ghana has faced significant macroeconomic headwinds, including currency fluctuations and high inflation, which put pressure on both digital lenders and their customers’ ability to repay.
Affinity’s response has been a “zero-fee” approach. The platform charges no monthly maintenance fees or transaction costs, betting instead on the volume of its lending products and interest on deposits. This “freemium” banking model requires massive scale to reach profitability.
With US$13 million in total capital raised, including an US$8 million Seed round, Affinity is now focused on deepening its footprint within Ghana before eyeing regional expansion. The current grant will specifically fund “capacity building,” which in startup terms means hiring, refining the credit algorithms, and scaling the educational outreach needed to convert cash-reliant workers into digital bank users.
The Competition
Affinity isn’t alone in the race. It competes with:
- Mobile Money (MoMo) Giants: MTN and Vodafone dominate the payment landscape.
- Traditional Banks: Many are now launching “lite” versions of their apps.
- Neo-banks: Regional players like Kuda (Nigeria) and TymeBank (South Africa) have set high benchmarks for digital-first banking on the continent.
By securing the Cisco Foundation’s backing for a second time, Affinity has validated its impact-first model. However, the true test will be whether its proprietary underwriting can keep default rates low in a volatile economy while maintaining its “no-fee” promise.