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.
Image: AI Lab
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.
Bridgement has effectively overturned this traditional funding model since its inception in 2016. The company has deployed more than R2 billion in business loans to South African SMEs, enabling them to secure financing quickly, often within minutes, by leveraging their operational financial data rather than relying solely on extensive paperwork. The platform uses advanced AI to assess thousands of financial and operational data points, streamlining the credit decision process.
“This funding reflects the confidence that two of South Africa's largest banking groups have placed in our technology, our team, and our vision for SME finance,” said Daniel Goldberg, the founder and CEO of Bridgement.
“We’ve already helped thousands of businesses access over R2 billion in funding, and this backing allows us to extend that impact to even more South African SMEs.”
Bridgement's proprietary platform capitalises on live financial data sources, including bank accounts and accounting software such as Xero and Sage, creating a real-time view of a business's creditworthiness. By doing so, Bridgement is not only able to hasten funding decisions but also offer flexible repayment structures that align with the cash flow dynamics of SMEs.
The newly raised funds will enable Bridgement to aggressively scale its lending operations and further reinforce its position as a leading online business lender in South Africa. The fintech is also keen on licensing its technology to banks and corporates, enhancing their capability to serve SME clients with AI-powered lending solutions.
According to Xolela Albert, Leveraged Finance: Lead Transactor at RMB, “Bridgement has demonstrated an ability to combine technology, data, and credit expertise to deliver funding efficiently and at scale,”
As the conversation around AI's role in finance grows louder, Bridgement is showing how innovative technology can bridge the financing divide. With turnaround times that outperform traditional institutions, SMEs can now access capital with far fewer barriers, paving the way for a brighter economic future.
Visit:www.businessreport.co.za