Lending to small and medium enterprises (SMEs) is a highly competitive space where lenders rely on digital platforms and online interactions to attract business. Genfin has chosen a somewhat different route that also takes the “who” into account.

The financial services industry as a whole has been moving online, and for the majority of alternative lenders, that’s no different. As a result, a business owner seeking a loan only has to search Google to find a ream of solely web-based platforms built on quick-and-easy online application processes and fast turnaround times.

But when everyone is promising the same thing, it’s difficult to decide who will best serve your business and its needs. Genfin has taken a different route and is working hard to strike a balance between digitisation and human client service.

“We believe in the value of getting to know your business and providing the best possible client service,” said Jaco Erasmus, CEO of Genfin.

“This is underscored by our latest figures, which show that about 50% of our loans are taken out by returning clients,” he said. Genfin’s strategic focus is on medium-sized businesses with a trading history of at least three years and a turnover of R10-million or more per annum, rather than small and micro businesses.

A holistic approach to client service

Alternative finance has grown in popularity over the past three or four years. In South Africa, small and medium-sized businesses have embraced this to secure additional debt on an unsecured basis for growth opportunities and working capital. This can give some breathing space in an uncertain economy.

“In this regard, we take the time to understand our clients’ needs and their ability to service additional debt, ultimately providing them with the right financing option with the most flexibility,” said Erasmus.

“We provide conventional loans for the modern age with a swift online application process. This means that online applications are followed up by experienced business funding analysts who then guide clients through the entire process.”

Prompted by evolving client needs, fintech platforms have disrupted business lending. Even so, the 2023 Gartner B2B Buying Report stated that 75% of B2B buyers prefer to buy online without any human assistance. Those who went the self-service route, though, were more likely to have buyers’ remorse. “Although this refers largely to products and services, it does point to the value human support and client service bring to the client journey,” said Erasmus.

Client service is about more than speed

User experience and user journey are key to successful digital processes, but they make up only one aspect of the overall client experience. Medium-sized companies, like large corporations, value efficiency. That translates into minimising and creating frictionless processes.

Erasmus acknowledged that advocates of fully digital processes would view introducing humans as introducing friction, but he begged to differ. “Top-notch client service means prioritising the client and understanding their business and growth plans. Making the application process easy by being available to answer questions, provide guidance and ensure they’re getting what’s best for their business saves them a lot of time further down the line. That is what our clients appreciate.”

About Genfin Business Finance
Established in 2016, Genfin Business Finance (Genfin) is a fintech lending business and part of the Genfin Holdings group, an investment holding company specialising in SME and consumer lending in South Africa. Based in Cape Town, Genfin is a proudly South African company that enables and supports SMEs and mid-corporates with flexible funding that unlocks growth for sustainable success. Using innovative technology, Genfin provides funding to thousands of businesses in approval times rarely experienced in the traditional lending landscape. For more, visit www.genfin.co.za.

About Jaco Erasmus
Jaco Erasmus joined Genfin Group in 2021 to spearhead the provision of smarter, faster and more flexible alternative lending solutions for South Africa’s SMEs and mid-corporates. A seasoned corporate and investment banking professional, Erasmus has spearheaded some of South Africa’s most prominent corporate and investment deals. He launched his banking career working for a number of local and international groups in London before spending nearly a decade as director and corporate coverage head at global banking group HSBC in South Africa.

After more than 20 years working at the forefront of banking and lending in South Africa, Erasmus has an innate understanding of value creation within the banking industry and the power of technology and big data to break down traditional barriers. He is a staunch believer in the transformative potential of SMEs and mid-corporates to power economic growth and tackle challenges in South Africa.