Deduction from source spurs Letshego growth
Financial service group, Letshego has achieved a double digit growth from its deduction from source portfolio.
According to the company’s full year results for the year 2021, the segment recorded a 14 percent growth to net P10.5 billion.
The company says profitability in deduction at source remains positive, buoyed by digital and system enhancements.
“Letshego’s LetsGo Digital Platform, is now live in 10 markets, enabling existing and new customers to register online, access new DAS lending solutions, track their loans and update account information via their mobile phones,” said Group Chief Executive Officer, Andrew Fening Okai.
The double digit growth in deduction from source also resulted in a profit before tax for the segment, resulting in a 20 percent increase to P1.2 billion compared to P1 billion in 2020.
Letshego highlighted that the company’s digital adoption is being spurred with greater volumes of loan applications received via digital channels, with highest trends seen in Nigeria, Namibia and Botswana.
Letshego said 78 percent of deductions at source customers are now active across various digital channels. Meanwhile, Letshego Chairman, Enos Banda said though the company leverages tech and digital advancements to improve delivery and support customers across Africa, it is taking steps to balance the evolution with the application of solid governance and world-class risk management frameworks.
Last year, Letshego announced that its new LetsGo App targets government and civil servants employees on the company’s deduction from sources model, a system that has shielded the financial services company from headwinds of the COVID-19 pandemic.