en.Wedoany.com Reported - Rand Merchant Bank (RMB) and Standard Bank have provided R330 million in funding to South African fintech company Bridgement to support its online AI-powered business lending platform for small and medium-sized enterprises (SMEs).
The company stated that this funding will be used to expand Bridgement's direct lending to SMEs and strengthen its market position. South Africa's SME sector accounts for approximately 40% of the country's GDP and employs about 60% of the workforce, yet faces a funding gap of around R350 billion to R386 billion. Traditional credit assessments rely on audited financial statements, collateral, and stable cash flow visibility, making it difficult to evaluate businesses that operate differently or lack readily available financial records, leaving many South African enterprises unable to meet loan requirements.
The banks and Bridgement will focus on quickly and at scale approving business financing without over-relying on traditional collateral—which has been a barrier to SME financing. Bridgement says it will provide funding to SMEs based on data generated from normal business operations. Data from bank accounts, accounting software, and other digital financial sources can provide a more accurate and timely view of a business's creditworthiness. The fintech company's artificial intelligence platform analyzes thousands of financial and operational data points to understand SME performance and cash flow in real time, enabling faster and more accurate credit decisions than traditional lending processes.
Bridgement founder and CEO Daniel Goldberg said that SMEs do not need more paperwork; they need faster access to capital. "By using AI to analyze real-time financial data instead of relying solely on traditional lending processes, Bridgement is helping more businesses access the capital they need to grow." Xolela Albert, a trader in charge of leveraged finance at Rand Merchant Bank, said the bank has been a funding partner of Bridgement for years and has witnessed the company consistently deliver on its vision of improving financial inclusion in South Africa.
