As the conversation around AI's role in finance grows louder, a company called Bridgement is pioneering how innovative technology can bridge the finance divide, with financing turnaround times that outperform traditional institutions, also allowing SMEs can now access capital with far fewer barriers.
In a significant step towards addressing South Africa's chronic funding crisis for small and medium-sized enterprises (SMEs), Bridgement, a pioneering AI-driven lender, has secured R330 million from Rand Merchant Bank (RMB) and Standard Bank.
The infusion of capital marks a decisive moment in the evolution of business banking in South Africa, as it underscores the growing support from major banking institutions for technology-enhanced financial solutions over traditional lending models, a statement said Friday.
Despite SMEs contributing approximately 40% to the country's GDP and providing around 60% of employment, the nation still grapples with an estimated funding gap exceeding R386 billion. Conventional credit assessments typically hinge on audited financial statements, available collateral, and consistent cash flow visibility - criteria that many of South Africa's SMEs struggle to meet. This limits their access to crucial funding needed to foster growth and innovation.
