Diaspora (Commonwealth Union) _Afin Bank has set out to revolutionize financial accessibility for Africans in the UK, addressing a long-standing issue many face: the struggle to obtain mortgages due to their nationality, visa status, or lack of credit history. These barriers persist despite many Africans holding vital jobs or running successful businesses in the UK. By targeting this underserved demographic, Afin Bank is paving the way for a new era of financial inclusion.
The newly launched digital bank recently obtained a restricted banking license, which allows it to offer a range of savings products. These savings accounts, protected by the Financial Services Compensation Scheme (FSCS), will be available to both UK passport holders and residents from Ghana, Nigeria, Sierra Leone, and The Gambia. Currently, the bank can only hold a maximum of £50,000 in aggregate deposits, but it has ambitious growth plans. Next year, it aims to begin offering residential and buy-to-let (BTL) mortgages for individuals living in England and Wales, as well as for those looking to invest in the UK property market.
At the helm of Afin Bank is Jason Oakley, CEO and co-founder of Recognise Bank, a SME lender launched in 2021. Oakley proudly announced Afin Bank’s new banking license, calling it an important milestone. “This is an important milestone for Afin Bank and demonstrates that we are well on our way to offering vital financial services to the African diaspora who are currently poorly served by mainstream providers,” Oakley stated. His vision is to bridge the gap in financial services that has left many professionals from African backgrounds, working in essential fields such as law, finance, and health, without the financial support they deserve.
The bank’s mission goes beyond merely offering mortgages; it’s about creating a space where customers from diverse backgrounds feel valued and supported. “More than just helping them overcome these challenges,” Oakley added, “Afin Bank will be a bank where customers will feel welcome and people with diverse backgrounds are valued.” This approach underscores the bank’s commitment to inclusivity, highlighting the personal struggles that inspired its creation.
Indeed, the inspiration for Afin Bank came from the lived experiences of Africans, particularly from West Africa, who have faced difficulties in building relationships with traditional banks in the UK. With more than 1.5 million African nationals residing in the UK, the bank initially plans to target this demographic. However, as Afin Bank grows, it intends to expand its services to other underserved diaspora communities.
Backing Afin Bank is WAICA Reinsurance Corporation Plc, one of Africa’s largest reinsurance companies, which has committed £60 million to the venture. This investment demonstrates WAICA’s confidence in both the UK financial services sector and Afin Bank’s mission of supporting an underserved market. The partnership between Afin Bank and WAICA Re is a powerful testament to the strength of cross-continental financial collaboration and the belief in the potential of the African diaspora.
Monica Velasquez, the bank’s Chief Technology Officer (CTO), brings a wealth of experience to the table, having previously worked as CTO of Recognise Bank and as a solutions engineer at Mambu. Velasquez understands the pivotal role technology plays in modern banking, stating, “Advanced technology is now a baseline expectation for financial services. At Afin Bank, our goal is to deeply understand the barriers our customers face and create innovative, customer-centric solutions swiftly.” This technology-forward approach ensures Afin Bank will not only meet but exceed customer expectations in an increasingly digital financial landscape.
In addition to offering an app for convenient banking, Afin Bank plans to utilize intermediaries and brokers for its lending products, ensuring that its services are accessible to a wider audience. Moreover, the bank aims to forge meaningful connections with the African community by building partnerships with cultural networks and associations. The bank will strengthen its position within the community and tailor its products to the specific needs of its target demographic through these collaborations. In summary, Afin Bank is more than just a new player in the UK’s financial sector—it’s a lifeline for the African diaspora, providing much-needed access to financial products that have historically been out of reach. Afin Bank, with its clear mission to foster inclusivity, cutting-edge technology, and strong financial support from WAICA Reinsurance Corporation, stands poised to dismantle the barriers faced by underserved communities and provide them with a bank they can trust. As the bank grows, its vision of empowering diverse communities with financial solutions that work for them will undoubtedly have a transformative impact.