Letshego invests in digital solutions
Letshego Holdings Group will invest more into digital and strategic partnerships towards next year to enhance its products and systems. The group plans to further expand its vision to develop a foundation for eco-systems digital hubs and upskilling its customers and employees with digital skills that support sustainable financial inclusion. In its half year ended June 2021, the Group recorded 28 percent increase in profit after tax to P313, 6 million despite the tough economic situation due to the Covid-19 pandemic.
Commenting on the published results, Letshego Group Chief Executive Officer, Andrew Okai pointed out that the group has increased investment in digital initiatives along with end to end automation of processes and platforms. During the period, the group rolled out its LetsGo Digital platform across 10 markets, giving customers direct access to lending solutions through their mobile phones.
Okai said with the onset of a ‘third wave’ in many sub Saharan markets, Letshego continues to maintain a proactive stance in adjusting and evolving its Pandemic Response Plans and risk mitigation strategies to meet ever-changing economic environments. “By the end of 2022, the Group will see further expansion of the Group’s vision to develop a foundation for ‘eco-systems’, expanded multi-tier partnerships and digital hubs, all while upskilling and empowering employees and customers with world-class, digital skills that supports sustainable financial inclusion and digital-savvy economies.”
Digital adoption levels increased to 74 percent at the end of June 2021, from the 30 percent last year. “Digitisation was achieved with the deployment of customerfacing digital platforms, including WhatsApp, Webforms, and the LetsGo Digital Platform that was delivered in record time with Enterprise Agility. Our ‘Digital Eagles’ continue to support the process by educating customers on digital access. By the end of June 2021, digital loan approvals surpassed 95 000.” The group indicated that its asset quality remains robust with the Loan Loss Ratio (LLR) within target range at 1.4 percent, and the nonperforming loans ratio reducing to 5.6 percent compared to 7.9 percent recorded in the prior period. Strong performance for the interim period was driven by a 20 percent growth in net customer advances, totalling P11.1 billion.