Andray Finance targets Nigeria’s loan sharks, bets on ethical credit to win underserved economy

Andray Finance launches a mobile app aimed at offering fair loans while pushing back against years of predatory practices that have damaged trust in the sector.

The Lagos-based fintech said its new application, now available on Google Play Store and Apple App Store, is designed to provide quick and transparent access to credit for individuals and small businesses often shut out of traditional banking.

The move comes at a time when Nigeria’s digital lending ecosystem is under intense scrutiny, with regulators tightening oversight following widespread complaints about loan apps that charge high interest rates and resort to harassment tactics.

Andray Finance is positioning itself as a clean alternative.

“For too long, the digital lending space in Nigeria has been clouded by predatory practices. We are offering a sanctuary for borrowers,.credit that is fast, fair, and respectful of dignity,” said Bayowa Fredrick Borokini, founder and chairman of the company

From SaaS to street-level lending

The company’s shift from a software-as-a-service (SaaS) model to a direct-to-consumer mobile platform reflects a broader trend among fintech firms seeking to capture Nigeria’s large, underserved retail market.

By moving onto global app stores, Andray Finance is taking its lending algorithms and credit scoring tools directly to everyday users, including informal workers such as traders, artisans and gig economy participants who often lack access to formal credit.

This transition is significant. Nigeria’s credit gap remains wide, especially among low-income earners and informal sector workers who make up a large share of the economy. Traditional banks, constrained by risk frameworks and documentation requirements, have struggled to serve this segment, leaving room for digital lenders to step in.

However, the rapid rise of loan apps has also brought reputational risks to the sector.

Cleaning up a damaged market

In recent years, several digital lenders have been accused of breaching user privacy, including accessing borrowers’ contact lists and sending public shaming messages to recover loans. These practices triggered regulatory intervention and forced some operators out of the market.

Against this backdrop, Andray Finance says its model is built on privacy protection and compliance.

The company said it uses data analytics to assess creditworthiness without harvesting personal contacts, aligning its operations with Nigerian regulations and emerging global standards on data protection.

This could become a key differentiator as trust becomes a critical factor in user adoption.

Targeting the underserved economy

Beyond addressing ethical concerns, Andray Finance is also targeting a deeper structural issue, financial exclusion.

Millions of Nigerians remain outside the formal financial system or have limited access to credit. For many, the choice has often been between no loans at all or expensive, high-risk borrowing from informal lenders.

The company’s product suite reflects this reality.

Its offerings include payday loans for salaried and non-salaried workers, micro ‘nano’ loans for short-term needs, and specialized financing for sectors like the creative industry, an increasingly important part of Nigeria’s economy.

It also includes education financing, medical emergency loans and asset financing, areas where access to quick credit can have a direct impact on livelihoods.

By bundling lending with services like airtime recharge and bill payments, the app is also positioning itself as a broader financial tool rather than just a loan platform.

Betting on ethical profitability

A key question, however, is whether ethical lending can remain profitable in a high-risk market.

Digital lending in Nigeria is often challenged by high default rates, inflation pressures and weak credit infrastructure. Many lenders justify high interest rates as a hedge against these risks.

Andray Finance believes it can balance both. The company said its model is built on proving that underserved communities can be financed sustainably without resorting to exploitative practices.

“We are not just giving out loans; we are helping users build verifiable financial histories,” Borokini said.

If successful, this approach could help integrate more Nigerians into the formal financial system, enabling access to larger credit facilities over time.

A market at a turning point

The launch of Andray Finance’s app highlights a broader shift in Nigeria’s fintech landscape, from rapid, unregulated expansion to a more structured and compliance-driven environment.

Regulators are increasingly focused on consumer protection, while users are becoming more selective about the platforms they trust.

This creates both challenges and opportunities. For new entrants like Andray Finance, the opportunity lies in rebuilding confidence and setting new standards. For the industry as a whole, the challenge is to prove that digital lending can be both inclusive and responsible.