How VYZYO enables financial and social inclusion with fintech-as-a-service platform

Digital transformation leaves no sector of the economy untouched, and financial services are no exception. Fintech and the financial sector in general have evolved significantly over the years, continuously adopting the latest technologies and innovations to stay ahead and maximize profits.

An OECD report on artificial intelligence (AI), machine learning (ML) and big data estimates that the global financial sector will double its AI spending from $50 billion in 2020 to more than $110 billion in 2024.

Leading technologies such as AI and cloud computing are most utilized for high-end financial services clients. But some organizations are using other, equally important technologies to reach overlooked market segments, especially in emerging and developing economies.

One of the organizations trying to drive innovation in the financial sector is VYZYO, a UK-based company that facilitates financial and social inclusion with offerings such as a cloud-enabled platform-as-a-service (PaaS) and value-added telecom services (VAS). The company’s vision is to ensure digital payment and mobile financial services reach all segments of a country, supported by an ecosystem that promotes equal access to essential financial services and improves users’ livelihoods.

VJ Odedra, founder and CEO of VYZYO, told VentureBeat that the company wants to create equal opportunities for everyone – regardless of economic status, social background or geographic location. He said VYZYO’s platforms empower service provider partners to offer digital payment services and mobile financial services that are “fast, accessible, sustainable and easily scalable.”

Closing the gap between banks and the underbanked/unbanked

In 2018, the World Bank reported that around 1.7 billion people globally had no access to banking services. In the Middle East and North Africa, only 44% of people over the age of 15 had a bank account, compared to 68.5% globally. So while COVID-19 has accelerated the adoption of digital payment systems worldwide, a large gap still exists between the banked and underbanked or unbanked today – a gap VYZYO says it wants to close with its fintech-as-a-service- solution.

According to Odedra, while other players offer financial services to subbanks and unbanked, many do not contribute to improving the lives of customers in these market segments. He believes that leading with social responsibility is the only way service providers can achieve sustainable profitability in these segments.

“From our experience, finding the balance between social responsibility and profit will increase the demand for services from the underbanked and unbanked. This allows us to improve the livelihood of customers in these segments, while improving the bottom lines of our partners,” Odedra explained.

VYZYO markets itself as a one-stop shop for fintech and telecom VAS, offering a range of technologies that drive economic and social inclusion. The cloud-enabled technology, which Odedra says enables VYZYO to scale its financial reach, harnesses the power of cloud infrastructure such as AWS and others. VYZYO also works with many commercial partners – including mobile operators, financial service providers, postal authorities and public organizations – to set up shop in local markets, making essential services available to the entire population.

“Let’s be clear: the distinction between banks and non-banks has been partly perpetuated by the banks themselves, which have historically targeted customers with stable incomes, fixed expenses and the ability to buy and repay loans and other banking services. As a by-product of this strategy, many banks have neglected the needs of the wider public, preventing a significant percentage of the population from accessing essential banking services,” Odedra said.

He further noted that this situation has “created an important market opportunity for other service providers to offer mobile money and mobile wallet services.” Odedra recommends that service providers targeting the underbanked and unbanked should first focus on the social needs of customers in these segments, after which margins will be made in large volumes in a socially responsible framework.

Fintech innovation to drive value and use

While most financial service providers and fintech providers focus on profit-oriented services offered over the internet or on mobile apps, Odedra said VYZYO looks across the board. One example is its VYZYOPay platform, which enables the company’s partners to facilitate access to banking services regardless of the end user’s device. Not only users with smartphones, but also those with older devices or limited connectivity can access the essential services via SMS, USSD and interactive voice.

The company claims its add-on products provide similar access to healthcare, education, public services and even entertainment through its video-on-demand platform WatchNow.TV.

“Our combination of technologies provides equal access and opportunity for all, making economic and social inclusion a reality,” Odedra said.

More about VYZYO

VYZYO was founded in 2017 by VJ Odedra (CEO), and has around 75 employees. The company claims its customers include some of the world’s biggest brands in financial services, telecoms, retail, media and energy.

VYZYO recently signed a commercial partnership agreement with CAMPOST, the national postal and financial services provider in Cameroon, to distribute and operate digital payment services and mobile financial services. VYZYO and CAMPOST will manage digital payments for public services, including welfare and health reimbursements; money transfers and international money transfers; and mobile financial services for microsavings, microcredit and microinsurance.

VYZYO says these new services are economically and socially inclusive and will be available to the entire population of Cameroon, including those with limited or no access to banking services and communication infrastructure.

The company has also signed an agreement with Al Baraka Bank in Tunisia to offer a mobile wallet service to its customers across the country. The service will enable financially and socially inclusive digital payment for public services, mobile transfers, merchant payments and more.

Odedra said the company has also signed a number of commercial agreements to support the launch of fintech, telecom VAS and payment services in Ethiopia, Uganda, Ivory Coast, Nigeria, India and Thailand.

With a total of $5 million in seed investment already raised from two private investors, VYZYO is looking to raise additional funding of more than $30 million. The company intends to use the funds to expand its corporate structure, deliver on recently signed projects and accelerate growth in new territories in Europe, Africa, the Middle East and Latin America.