A Kenyan money lending start-up, Branch, has announced that it has so far disbursed 1.5 million loans to a total of 350 000 Kenyans who use its app, issuing about US$4 million (Ksh.400 000 000) every month.

As reported by techweez, the mobile lending app, founded in 2015, offers loans of up to Ksh.50 000 through its Android app. The app builds a credit score of the user by analysing their M-Pesa usage and over 2 000 data points on the customer's phone. Once the customer's credit worthiness is determined, the user can use the service.

According to the company, this exponential growth has been spurred by its unique policy of offering lower interest rates to customers who have reached higher credit limits, thereby encouraging repeat uptake.

Branch has also established a foundation in neighbouring country Tanzania, where, according to the company, they have been scaling at a rate of 30% month-on-month since the beginning of the year.

"We know what our borrowers expect from their financial partner: they want speed, transparency and convenience," says Branch CEO, Matt Flannery, who adds that the company has seen immense growth.

"We are disrupting the existing lending space by making credit available at the tap of a button, within minutes of downloading the app – no paperwork or collateral necessary," he says.

The company says it has been working with other companies in the country to create exclusive loan offers, as part of a "radical approach to financial services".

"We leverage the partner company's data to supplement its credit scoring model." It announced a similar partnership in May, with Jumia Kenya, whereby working capital loans are provided for merchants on the online shopping platform.