When lenders decide to go digital, the goal is usually simple: go live in a few days, get customers borrowing, and start scaling. But in practice, that “few days” can easily stretch into weeks or even months. At Lendsqr, we’ve seen some projects that have dragged on for nearly a year and that’s us opening our asses here to show our imperfections too.
Setting up a lending operation isn’t always straightforward, especially when you’re dealing with compliance hurdles, third-party dependencies, or unclear internal processes. Over time, we’ve learned where most lenders stumble. Here are the issues that consistently slow things down.
1. Missing or incomplete licenses
This is where things start to slow down for many lenders, especially in markets like Nigeria. Quite a number of lenders come ready with their lending license but forget about the FCCPC license. Without it, you’re not allowed to operate, which means nothing can move forward.
On paper, getting the FCCPC license looks simple enough. In reality, it can take months. Applications pile up, follow-ups take time, and the approval process can stall the entire project. So even though lenders may be eager to start issuing loans, everything pauses until that license arrives.
To make matters worse, lenders also discover along the way that they need a DUNS number. A few years ago, only Apple asked for it. Now, Google does too, and you can’t publish your app on Play Store without it. Before, you could apply for your DUNS online through the global site. Now it has to be done locally through Nigeria’s office, which takes time.
The good thing is that the DUNS team in Nigeria is quite responsive and the process is clear. Lenders who go through it properly often get it done without much trouble, but it’s still one of those unexpected things that slow setups down.
2. Lenders without capital
Some lenders get everything right — the platform, licenses, and even the team — but then hit a wall because they simply don’t have the funds to start lending. Having the software ready is one thing; having money to actually disburse is another. This is one of the most common reasons new lenders stall after setup. To solve this gap, Lendsqr created an onlending program that provides access to loan capital for licensed lenders.
The program makes up to ₦1 billion available and works like an overdraft facility: lenders only pay interest on the funds they use. Before disbursing, our team reviews each lender’s readiness, from their risk models to their loan product design all to ensure the capital will be properly managed. Without access to a facility like this, most lenders wait months trying to raise equity or secure external funding, which slows everything down before a single loan even goes out..
3. Asking for too many custom features
Another reason deliveries drag endlessly is feature overload. Some lenders want everything custom-built: special approval flows, fancy repayment features , the list is endless. Oftentimes these are things that sound nice but don’t actually move the needle for their business and also don’t help them go live faster.
Every feature, whether useful or not, takes engineering time. In fact, the more unnecessary a feature is, the harder it is to build, because it usually breaks the natural flow of how things work. Out of the box, our web and mobile apps already cover what 99% of lenders need.
For context, a fully branded mobile app can be ready in about 2 weeks — logo, name, and all. A web app is available instantly but maybe a couple hours to customize it. That’s usually enough to start lending.But once custom feature requests start coming in, timelines begin to stretch for reasons that go beyond the requests themselves. In most cases, the features being asked for are not the real problem. Many of them turn out to be unnecessary once we break them down and examine what the lender is truly trying to achieve.
Others are not properly thought through, so they end up needing several rounds of clarification before any real development can begin. Then there are those that depend on external systems or providers, which naturally introduces delays outside of anyone’s direct control. All of these factors combined make what should have been a straightforward setup more drawn out than it needs to be.
4. Delay in setting up developer accounts
A common cause of delay for many lenders is the time it takes to set up their developer accounts for the Play Store and App Store. These accounts are required before any mobile app can be published, and the process is often slower than expected. Depending on the country, opening a developer account may require additional business credentials, compliance documentation, or proof of regulatory registration.
We’ve seen many lenders underestimate how long these verifications take, especially when they need to get approvals from multiple authorities or submit extra documentation for data protection and financial compliance. To make this easier, we usually guide lenders through the process early in the setup phase.
We also work with partner providers who assist with compliance filings and other regulatory steps that can slow things down. Handling these requirements alongside the technical setup helps keep the overall project on track and shortens the time to launch.
Related read: Frequently asked questions about getting your apps into Google and Apple stores
5. Core banking integration problems
If there’s one stage that consistently causes long delays, it’s core banking integration. This is where lenders connect their core banking systems to our lending platform, and things can get tricky very quickly. The problem isn’t always the technology itself, it’s often the providers. Some core banking systems have poor documentation, others behave differently from what the documentation says, and many providers simply don’t respond fast enough when issues come up.
We’ve even seen cases where a CBA provider’s internal team wasn’t exactly helping their own customer succeed. When that happens, integration takes much longer than necessary.
That said, some core banking platforms are great. Mifos, for example, is one of the best. Integrations are smooth, the documentation is clear, and support teams are responsive. Mifos is also open source, so lenders don’t have to pay hefty licensing fees. They just need to work with a partner company for technical support and can host it cheaply in the cloud.
6. Weak operational readiness
A lender can have all the tech and licenses ready but still get stuck because they don’t have a team. We’ve seen lenders complete setup, go through onboarding, and then realize they don’t have enough people to operate the business.
Recruiting is tough across Africa. You can find people, but finding the talent who can do the job well, think fast, and stay committed is a different story. Without a strong team to handle customer support and daily operations, launching becomes almost impossible.
It’s always better to start recruiting early, even before the setup is complete. That way, by the time the platform is ready, the people running it are ready too.
7. Poor clarity on risk and lending criteria
Another delay we see often comes from lenders who have an idea but not a clear risk framework. They know they want to lend but haven’t decided what qualifies a borrower, what repayment terms to use, or how defaults will be managed.
These questions usually come up during setup, and they affect how the product is built. When the decision-making drags, everything else slows down. We usually recommend that lenders define their credit policies and risk criteria before the build starts. It saves everyone a lot of time later.
Related read: Should I lend to this customer? A guide to risk assessment
8. Partnership dependencies
Partnerships can also stall projects. Lenders who plan to launch in collaboration with telcos, schools, cooperatives, or government agencies often find that their partners move slowly or change contract terms mid-project. We’ve seen partnerships collapse at the last minute or shift in ways that force lenders to redesign their entire go-to-market plan.
It’s very common for partners to change their terms midway, hold off on approvals, or simply stop responding for months. In some cases, the lender ends up waiting so long that the partnership loses relevance. It’s important to have backup plans or to start with a smaller, independent rollout while the bigger partnership is still being finalized.
9. Partnership-related delays
Sometimes, lenders go through setup, testing, and approvals only to lose momentum near the end. The product is ready, but they hesitate to go live. Maybe they’ve spent too long on the project, or the internal excitement has faded, or priorities have shifted.
Launching a lending business takes focus. It’s easy to get distracted by side features, shifting strategies, or new partnership promises. But once you lose direction, getting back on track takes time and effort.
What this all means
None of these issues are unique to one market or one type of lender. They show up across projects, in different ways and intensities. But they all point to one truth; going digital is more than finding the right technology. You also have to go hard on preparation, documentation, and decision-making.
At Lendsqr, we’ve spent years refining our processes so lenders can move faster. We help them sort out licensing, integrate with their core banking providers, and launch their mobile and web apps quickly. We also stay on to make sure they grow confidently and compete effectively in the lending space.
If you’re planning to go digital or you’re stuck somewhere in setup, we can help you get things back on track. Book a demo to see how we can help you go live with confidence.
