Lendsqr, a Nigerian fintech company, wants to change the way loans are given out by introducing AI-powered credit scores.
This innovation aims to make borrowing easier for Nigerians, especially those who have no formal credit history or struggle with traditional credit scoring methods.
The AI technology will generate credit scores by analysing over 300 different data points, including voice and video. Instead of just relying on traditional banking information, the AI looks at a variety of alternative data, including mobile phone usage, payment histories, and other digital footprints. This means even Nigerians without a long history of borrowing or bank accounts can now be assessed for loans.
For Nigerians, this technology could significantly improve access to credit. According to veriveAfrica, many Nigerians have little to no access to credit, as only 6% of Nigeria’s adult population utilises credit products in 2023.
This suggests that it is difficult to determine eligibility due to a lack of formal credit histories. With Lendsqr’s AI-driven system, lenders can make more accurate and fair lending decisions, which could help millions of Nigerians get the credit they need.
This move comes at a time when digital financial services are on the rise in Nigeria. With more people relying on mobile phones and online transactions, there’s a growing need for smarter ways to assess creditworthiness. Lendsqr’s AI technology is designed to meet this need, ensuring that Nigerians have a better chance of accessing financial services, even if they’ve never borrowed before.
By using this AI-powered credit score, lenders will be able to assess risk faster, without the long delays usually associated with traditional credit checks. This means loan approvals could become quicker and more reliable, benefiting both lenders and borrowers.
As Nigeria’s fintech sector continues to grow, Lendsqr’s AI-driven approach to credit scoring could come in handy, making financial services more inclusive and accessible for all Nigerians. Loan apps in the country could also copy this technology to reduce their risk and expand their target market.
