SoLo Funds, a loan fintech for underbanked individuals, looks to expand its services to Nigeria.

SoLo Funds, a community lending platform, is expanding internationally for the first time to Nigeria. The platform aims to provide credit to the underbanked and American consumers who have faced discrimination in the loan process. Founded by Rodney Williams and Travis Holoway in 2018, SoLo Funds has grown to over one million users, with 82% of them coming from underserved zip codes in America. The company has issued over $200 million in loans and $400 million in total transaction volume, catering to historically economically disenfranchised communities.

According to Williams, the expansion to Nigeria is just the first step towards further international growth. He sees Nigeria as the gateway to the rest of the continent, considering its position as both the largest economy in Africa and the home to the fastest-growing middle class. The economic profile of Nigeria presents a significant opportunity for SoLo Funds to empower the middle class by offering them a chance to meet their financial needs and generate returns through reliable cash flow.

The existing fintech ecosystem in Nigeria was also a deciding factor for SoLo Funds. Williams highlighted the need to partner and leverage successful market players to deliver their solution. Nigeria has seen the success of fintech unicorns like Opay and Flutterwave, which motivated SoLo Funds to enter the market.

As a recognition of its disruptive impact, SoLo Funds ranked No. 50 on the 2023 CNBC Disruptor 50 list. Rodney Williams, the co-founder of SoLo Funds, is one of only two founders (along with Elon Musk) to have two companies make the annual list. Williams brings his executive background at Procter & Gamble and previous experience with Lisnr, a secure digital data transfer technology company, to the table.

In Nigeria, SoLo Funds has already established partnerships with key players like Paga, Platform Capital, and Endeavor. Williams believes that Nigeria’s lack of investment opportunities, with bank rate offerings for savings below inflation levels, presents a promising market opportunity for the company. SoLo Funds allows users to lend small amounts of money to peers on the platform, with the option to receive tips and generate a return. Approximately 99% of users choose to tip their lenders.

Williams acknowledged the controversy surrounding SoLo Funds and the accusations of predatory short-term lending. However, he emphasized the company’s mission to build a financial product for the masses, ensuring access for those who have been overlooked by traditional banks. Williams addressed the criticism by pointing to the positive impact the platform has on everyday Americans, providing them the means to meet their financial needs and enjoy some quality of life.

Expanding internationally brings inherent risks, but Williams plans to mitigate them through data analysis, testing, and partnerships with ecosystem leaders. SoLo Funds is well-prepared for complex lending regulations, having navigated the state-by-state basis in the U.S. Furthermore, the company has identified potential entry countries in Latin America and Southeast Asia for future international expansion.

NBCUniversal News Group, of which CNBC is a part, is the media partner of the Aspen Ideas Festival.