Financial Innovation & FinTech 60 Finance Monthly. have changed portfolios while remaining part of the executive, a testament to their versatility and cross-organisational strength. Tenacity has proved a valuable asset to Pepkor, which opened the opportunity to house the personal lending business with the team and allowed us to grow in the payment and lending space within Pepkor. How is Tenacity’s work with credit programs helping to enhance financial services throughout Africa? We believe in an inclusive credit approach. For many South Africans, their in-store credit card is their first entry into the credit market. We are conservative in our approach but believe in supporting our customers to build a credit record for themselves and make the unaffordable affordable. We operate in the lower LSM market and believe in a ‘low-to-grow’ strategy, meaning that where we are uncertain of the risk of a client, we will allow a small limit – and then, based on a proven payment record, allow limit increases over time that meet both the company risk profile and the customer’s affordability situation. Since the APlus card supports sales in our retailers, it is in our interest to keep customers current on their accounts and support them should they fall into arrears. We believe that we help customers to build a solid credit record that will stand them in good stead one day when they may require further credit, such as home loans and vehicle finance (neither of which we provide). Do you have any major projects in the pipeline that you are able to share with us? We have just launched our instore card into the largest of our retail partners, Pep Stores. We will launch our BNPL product (PayD’Lay) into our eCommerce space early in 2023. As is the case in many countries, the BNPL phenomenon has taken root in South Africa as well. We believe that many younger clients see this as a means to enter the credit space with small transactions that are paid off in short amounts of time and, in so doing, do not land in a debt trap. We also believe that the younger clients form the future in-store clients, and we need to maintain our relationship with them. What excites you most about your role? The two most fulfilling aspects of my role are, firstly, providing responsible, affordable products to our client base in the retail service, helping them to live their lives with dignity and respect. You may not know that each January, when schools are about to return, more than half the purchases on our cards are for schoolwear. Collab Room at Tenacity Financial Services
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