'Community Governed Loans and Mobile Money in Nigeria with Adebola Adeniran on The HackerNoon Podcast' by hackernoon mobilemoney hackernoonpodcast
What's up hackers. Welcome back to another episode of the HackerNoon Podcast. Of course, I am your host, Amy, Tom. Your best friend and your hacker noon editor. But with me today is another hacker noon editor Adebola Adeniran, he is the software editor at HackerNoon. So I am very excited to chat with him today, but we aren't going to be chatting about a HackerNoon.
mobile money. I'd sort of been a way for people to be able to move money around. so for example, as long as you have a mobile phone and you are connected to a network operator or telecom operator, you can easily like move money around. So you can go to an agents close to you, you can deposit cash, and then they top up mobile number, without value, and then you can use that to like pay bills.
But apparently, um, nobody else does this, but when you want to send money to someone, I would email you money via my bank. So I go into my online banking system and then I email you the money. Um, and you accept that via email. So tell me more about the infrastructure and the way that this is set up, that prevents people in Africa, in Nigeria, from using on-line bank.Okay.
So DBS is a platform that moves money around within different banks in Nigeria. The only differences that for people we don't have like regular bank accounts, they can easily go to an agent. You can use cash to facilitate those transactions because lots of transactions in Nigeria, you don't, um, day-to-day so you don't be a cash. so people who have like small mom and pop shops, lots of those transactions are done via cash and not via like cards or, like what are payment payment methods.
They want more people to use their mobile phones to move money around and to complete transactions as well. and wait for them to also be able to gain more customers without, without not like, you know, spending far more money on infrastructure is by using mobile money agents, um, around, because that's like that's way cheaper.
Right. It wouldn't really need to set up any infrastructure. Get your mobile phone is usually enough for them to set up shop, as a mobile money agent, because essentially what happens is that you have like a Bluetooth device that's attached to your mobile phone that you can use in printing receipts. Right. And so once you put us in . Um, you essentially, you have like your mobile money wallets, and you can go to any vendor around you deposit cash, and I'm going to kind of put you on mobile money and you can use that to pay dues, to transfer to other people and things like that. So it's been around for like nearly 10 years now.
Right. And so like, everybody decides already captured in that system. And it's easy to just like, once you verify that data, Excuse me able to provide like a service to the person, because you already know that this is a legit person where it's verified is your sort of a unique code that links you into the financial system.
Yeah in Nigeria. we have like the major players in the mobile money business. They're like two or three or four businesses that everybody knows, at the immediate here in the markets, but at the same time, Delta, like, like maybe 109 50, what I play as well in the same markets. Also, sort of pushing the mobile money, mobile money business as well.
We became friends. We always had, we always true ideas back and forth, sort of like what we're trying to build, what we're thinking of building. and what would make sense for the ecosystem? and fast forward to 2020 seats towards the end of 2020, like know, like I'm building this thing, what's raining out.
and I decided that I was going to go into this full-time and also viewed the company. And yeah, that's sort of like when my journey started fromokay, so like late 20, 20 you're saying is when you kind of draw. Okay. Cool. And so tell me more about what Moni does and how it fits in money, money, and how it fits into the mobile and money market.Yeah. So, um, so one of the major issues that we realized that mobile money agents faced was the issue of, working capital right or credit.
And so what we. At money is that we provide that line of credits. so instead of you having to like short-sell back and forth between the bank multiple times in a day, we'll provide you like a long line of credits that you can use one of your transactions for the day and make all your conditions so that you don't drop any transactions.
And he's like, yeah. Frank sent under the last David. so I do the a hundred dollars from my. That was credited by money. I send it to David. Right. But I still have my $200 cash with me. Right. So when other people come, I can and, do, wants to make it, you draw from Gatlin accounts. I can give them the cash.
So that way you can go to the bank in the morning, get a thousand dollars cash concierge. And complete like, like five transactions that day without having to go to the bank. I see. See what you mean? And then you make a commission from each of those transactions that you do, and then you, you pay back the, um, the $1,000, like a little interest in.Oh, okay.
So we're not only in Nigeria, we're also in venture Republic. I'm also in Korea as well, where it was decided operations owning the space of like a, or like B and it needs to be. and then besides that, we also got into the YC program. So YC is the largest startup accelerator in the world. I think acceptance rates.
but I think that what we do is it is a bit different. we run like a community model, which is based on your social reputation. So you can just access credit on money if you don't belong to a community. Right. So you also do to. Yeah, exactly. Yeah. But the entire app works on a community model. Don't just affects me. It affects my community as well. And so our communities are self-insuring they're self-governing and everyone is responsible for.Cool. What is it about money and the mobile money industry that gets you so jazzed? Because I think it's all very obvious. You can tell that you care so much about it, and you're very proud to be on this team.
And so because of that, like a lot of customers from the, from our LEDs, they have my phone number. Right. And so they would call me over. And they will say like, you know that without you guys I'll be out with business, cause I don't have any capital to continue running this business. and without the loan that we give, they will not also be able to make more commissions, from, you know, doing more transactions.
Right. So traditional bank would say, Hey, you guys, you don't qualify for credits because first of all, you don't have the collateral. And secondly, you're probably not doing enough volume on your platform for them to give you that amount of credits. Right. And that's where we come in, because we won't ask you for collateral.
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