Financial services group Sasfin has received a R1 billion boost to drive digital banking services.
The company announced its financial results for the year ended 30 June, posting a headline earnings loss of R48.617 million.
Sasfin says it has received funding from FMO, the Dutch Development Bank. “Following a tough year, Sasfin’s digital business banking will be taken to the next level thanks to a fresh R1 billion partnership with the FMO to grow SME lending,” says the company.
Sasfin is a bank-controlling company that listed on the Johannesburg Stock Exchange in 1987. The company and its subsidiaries, notably Sasfin Bank, provide a range of specialist financial products and services for business and wealth clients.
The company has obtained a R390 million funding line as well as a $35 million (circa R600 million) loan guarantee facility (Nasira) from the FMO to provide loans to women, youth, migrant and COVID-19-impacted businesses.
In December 2018, FMO and the European Commission signed an agreement for the Nasira Risk Sharing Facility for an amount up to €75 million for a period of four years.
The facility targets mainly tier one and tier two financial institutions, and tier one microfinance institutions in the Sub-Saharan Africa and European neighbouring countries regions.
“This offering is the next step in our digital business banking evolution and will be launched in 2021,” says Sasfin in a statement.
It notes that Nasira has been rolled out by the FMO in other parts of the world and “we are the first South African bank to offer this solution.
“Sasfin continues to develop its lending capabilities in Asset Finance and Sasfin Capital, which together with Nasira, ensure that we are well placed to fund businesses, critical to the growth of our economy.”
The company adds that its significant investment in digital capabilities has enabled it to transform the way it works and the banking experience for its clients.
“We continue to enhance our digital suite of products and during the lockdown months, we serviced our clients remotely and recorded record growth in new business accounts.”
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