NewTech Friday: VIRL Financial Services – Offering customized loans to Zimbabwean MSMEs
Virginia Sibanda is the Founder and CEO of VIRL Financial Services. She spoke with Boris Plantier from Quorus about her company’s mission to provide tailor-made loans to meet the needs of small holder farmers, micro and small enterprises in Zimbabwe.
Virginia Sibanda is the Founder and CEO of VIRL Financial Services. She spoke with Boris Plantier from Quorus about her company’s mission to provide tailor-made loans to meet the needs of small holder farmers, micro and small enterprises in Zimbabwe.
What led to the creation of VIRL Financial Services?
I was influenced by the fact that 80% of economically active people in my country do not have access to reliable financial services. Access to capital supported by technical and skills training can bring economic empowerment to economic active individuals. This in turn will improve local economies and improve safety nets. I am a product of a grandmother whose only source of income was her ability to make garments using a manual sewing machine. It is this tenacity that resides in most people that is a sure bet. My background is in financial services and my MBA thesis was on how to provide capacity for micro and small enterprises and lend to them sustainably. VIRL Financial Services is about finding real solutions which is influenced by the people that it serves. The end game is to reimagine the world to make it better for more people.
Could you present VIRL Financial Services’ offer?
VIRL Financial Services’ value proposition is the provision of tailor-made loans to meet the needs of small holder farmers, micro and small enterprises with a particular focus on women and youth. The company has five loan products, namely working capital loans, micro asset loans, value chain loans, input loans and life enhancement loans. The rationale behind the five products was that not all of the unbanked are a homogenous group and is a result of consultation with customers. Every human being has the inherent need to have a choice of the products and services that best suits their needs. The beauty of this approach is that over time these loan products can become business units for scaling on the back of an IT platform. There is proof of concept for the startup which has gained traction as customers have borrowed and repaid loans.
What's coming next for VIRL Financial Services?
Collaborations and building sustainable eco-systems between FintTech’s and VIRL Financial Services. The right IT solutions are enablers for scaling up and reducing the cost of doing business for VIRL on one hand, while on the other hand VIRL understands the business end of dealing with unbanked customers. I have made great connections with FintTech’s and I am looking forward to meaningful conversations around using their platforms to scale the business in a responsible way with products that meet the pain points of small holder farmers, micro and small enterprises. As a microfinance practitioner, being part of Catapult 2022 Dubai Special Edition opened my eyes to possibilities. The business lines were blurred but bringing microfinance and fintech together in the same room provided a reset that was needed. There is space to collaborate in order to provide real impactful financial services to the unbanked population across African and beyond, and VIRL will be part of this journey.
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