Prime FinTech, a subsidiary of Prime Holding, has launched its first company, Endorse, with a paid-in capital of EGP 50m, and is aiming to reach EGP 100m by the end of 2020.
Endorse completed its registration in September 2020, and has received its one-of-a-kind licence from Egypt’s Financial Regulatory Authority (FRA). It will now be able to offer financial leasing and factoring activities to the business sector, as well as consumer finance services to individuals in the market.
Mervat Erian, CEO of both Prime FinTech and Endorse, said, “Endorse is ready to launch its unique value propositions in the market combining all three non-banking financial services in one company which sets us apart.”
She added, “As the market begins to recover from the economic repercussions of the novel coronavirus (COVID-19) pandemic, and in line with the Egyptian government’s vision about digitisation of businesses and companies, we feel that relying on technology to offer our services is a necessity and not a luxury.”
Endorse intends to target two segments in the market, namely businesses and individuals, commencing with leasing then factoring for the business sector. This will be followed by the roll out of consumer finance to individuals, all built on state-of-the-art financial technology (fintech) solutions.
The use of fintech will focus on a smooth, seamless digital consumer experience featuring intelligent lending and process automation. The customer journey, being digital and automated, reduces human error at every stage of lending, starting from consumer registration and onboarding, to post disbursement, collection and non-performing assets (NPA).
“Our factoring solutions, a much needed and a very much underplayed service in the market, offer new and alternative models of factoring, for example reverse factoring or supply chain financing, which will free up business finances for expanding operations,” Erian said. “Our leasing solutions will encourage businesses to expand their operations, offsetting the burden of high capital or operational expenditures.”
Endorse will present its tailored solutions through an industry sector segmentation that uses an industry lens to zoom in on the needs and potential of certain businesses. This will start with agriculture, healthcare, trade, logistics, distribution, education and manufacturing, with more sectors to follow.