Yango, the globally recognized taxi-hailing platform, has introduced an innovative financial service to empower its drivers in Ivory Coast. The company now offers in-app loans of up to 300,000 CFA ($500), a move that could redefine financial accessibility for its partners. This pioneering initiative is made possible through strategic partnerships with COFINA, a leading mesofinance institution, and Yabx, an embedded finance platform specializing in creating credit profiles for underserved customers.
A Game-Changer: The Driver Cash Advance Service
The newly launched Driver Cash Advance service is a digital loan product designed to address the financial needs of Yango’s driver community. With this service, drivers on the platform can access instant loans of up to $500, with flexible repayment periods ranging from two to eight weeks.
For now, the service is exclusive to Yango’s partner drivers in Ivory Coast, but the company has plans to expand its reach to include riders, food delivery agents, and merchants in the future.
Kadotien Soro: Driving Financial Empowerment
Kadotien Soro, Yango’s Country Manager in Ivory Coast, emphasized the transformative potential of the initiative.
“By providing this lending service, we empower our drivers to fulfill their dreams and grow their businesses. This initiative demonstrates our commitment to supporting the entrepreneurial spirit within our community.”
How It Works: Technology Meets Financial Inclusion
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The Driver Cash Advance service seamlessly integrates advanced financial technology into the Yango app, leveraging Yabx’s Lending-as-a-Service (LaaS) platform. Yabx employs cutting-edge AI and machine learning algorithms to analyze digital footprints and construct detailed financial identities for borrowers.
Key Features of the Loan Service:
- Instant Access: Drivers can receive cash advances in real-time, directly through the app.
- Flexible Repayments: Drivers can choose repayment schedules that align with their earnings.
- No Prior Credit Needed: Yabx’s innovative credit scoring system evaluates drivers based on their digital activity, bypassing the traditional reliance on credit history.
This partnership eliminates barriers to financial access, making it easier for drivers to manage cash flow, cover daily expenses, and invest in their businesses.
COFINA’s Role in Supporting Inclusive Finance
As the financial backbone of the initiative, COFINA Group brings its extensive expertise in mesofinance and financial inclusion to the table. COFINA focuses on supporting small and medium enterprises (SMEs) and entrepreneurs, ensuring that drivers receive quick and simplified access to credit.
Amed Sié Toure, Managing Director of COFINA Ivory Coast, highlighted the company’s dedication to fostering financial inclusion:
“This partnership with Yango and Yabx is a major step forward in providing tailored financial solutions to players in the gig economy. Together, we are building a more inclusive and resilient digital economy in Côte d’Ivoire.”
The Broader Vision: Transforming Africa’s Gig Economy
This initiative is more than just a financial service—it represents a significant step toward creating a sustainable gig economy across Africa. By offering drivers access to formal loans, the partnership introduces underserved communities to the financial ecosystem, allowing them to build credit histories and gain financial independence.
Key Benefits for Drivers:
- Improved Financial Stability: The loans help drivers manage unexpected expenses without financial strain.
- Business Growth: Drivers can reinvest in their vehicles or expand their operations.
- Enhanced Driver Engagement: The initiative fosters loyalty and strengthens Yango’s driver community.
Yango’s Growing Footprint in Africa
Yango operates in over 30 countries, including major African markets such as Ghana, Ethiopia, Zambia, Angola, and Senegal. The company’s expansion reflects its commitment to providing innovative solutions for drivers and riders alike. With a user base growing at an impressive rate of 25% year-over-year, Yango is well-positioned to drive financial inclusion across underserved regions.
Looking Ahead: Scaling Financial Inclusion
Yango, in partnership with Yabx and COFINA, aims to extend this service to other segments of its ecosystem, including food delivery agents and consumers. This aligns with a broader strategy to use technology and innovation to bridge the financial gap for Africa’s “missing middle” — individuals and businesses often overlooked by traditional banks and microfinance institutions.
Puneet Chopra, Chief Growth Officer at Yabx, underscored the significance of the partnership:
“Embedded lending has the potential to revolutionize credit access in underserved regions, fostering a stronger, more sustainable gig economy.”
Conclusion: A Win-Win for Drivers and the Economy
Yango’s Driver Cash Advance service is a bold step toward empowering drivers, fostering financial inclusion, and strengthening Côte d’Ivoire’s digital economy. By combining advanced technology with tailored financial solutions, Yango, Yabx, and COFINA are setting the stage for a brighter, more inclusive future for Africa’s gig workers.
As this initiative gains momentum, it could serve as a blueprint for other markets, transforming the way financial services are delivered to underserved communities across the globe.
