We’ve cracked the lending code
Lending is one of the oldest businesses in the world. Which is why the foundation and superstructure of every modern economy is built on credit. Credit is so important that it’s one of the most regulated industries in every country. But just like everything else, it has evolved with technology. Unfortunately, the technology behind modern finance can be as expensive and complex as rocket science. This has left thousands of lenders and the hundreds of millions of Africans out of luck.
At Lendsqr, we believe that just like the way the internet created a level playing field and ushered Africa into the modern age, technology for lending should be powerful, accessible, and affordable.
So Lendsqr has cracked the lending code, so that lenders worldwide can have access to the best technology, and use credit to lift billions out of poverty and into a better life.
– Adedeji Olowe, Founder at Lendsqr
Lenders struggle with getting paid
How does this affect lenders?
Without good payment systems, borrowers easily default, leading to lenders spending a great amount of time and money chasing repayments. More often than not, lenders lose money.
How is Lendsqr solving this?
Lendsqr offers various payment methods, such as debit cards, which are flexible, and direct debit, which is universally available to anyone. On the Lendsqr platform, the system can perform partial debits to borrowers’ accounts when they don’t have the full funds to repay their loans. At least, it reduces lenders’ exposures.
Also read: Why Nigerians don’t pay their loans
Lenders know they need technology to scale but it’s expensive
How does this affect lenders?
Without the ability to scale, lenders are damned with a business that wouldn’t grow, or grows at the cost of deploying staff to physically seek borrowers. The cost of developing and launching a world-class lending stack could be as high as $300,000 if it had features that guarantee quality and sustainable lending. Most lenders cannot afford this.
How is Lendsqr solving this?
Lenders can sign up on Lendsqr, with access to a world-class lending solution, for free. For lenders that want mobile apps, they can be up and running on the Google Play Store and Apple App Store within 7 weeks at the most.
Where Lenders can afford the tech, it takes at least 6 months to a year to launch a viable product
How does this affect lenders?
Plagued with a lack of agility, lenders are forced to wait for over 6 months before they can fully launch their digital business.
How is Lendsqr solving this?
Lendsqr lenders can start using the web app within 5 minutes. The BNPL module is available the moment a lender signs up online. Mobile apps are delivered within 7 weeks.
Problem: Lenders need good data to make decisions but these are not available
How does this affect lenders?
Without good data, lenders make suboptimal decisions, which leads to loan defaults.
How is Lendsqr solving this?
Lendsqr provides lenders with deep ecosystem data that cannot be found anywhere else and provides insights that are extremely difficult to create by individual lenders.
Where data is available, it is very expensive to run sustainable nano, micro, and macro loans
How does this affect lenders?
Lenders pay as much as N400 for statement data, and for credit bureaus, they pay for APIs that do not return any data. This forces a lot of lenders to make decisions without quality data input, leading to suboptimal loan books.
How is Lendsqr solving this?
Lenders have access to a wider spectrum of Lendsqr ecosystem data for free. Beyond that, Lendsqr has signed partnerships with some of the best data providers in Nigeria to provide quality sources with significant discounts that can be as much as 50%.
Furthermore, Lendsqr is developing its own proprietary phone SDK and statement data that lenders would have access to free of charge to aid their loan decisions. Read more about mobile SDKs.
Lenders don’t have access to quality prospective borrowers
How does this affect lenders?
Without access to a mass of good-quality data, a lender either does not grow or spends a lot to acquire customers through digital and traditional marketing.
How is Lendsqr solving this?
With API distribution, Lendsqr is partnering with different platforms where loans powered by Lendsqr are embedded within those ecosystems, and prospective borrowers can request loans that come directly to these lenders to underwrite. Lenders can grow without spending a dime on marketing.
Also read: Should I lend to this customer? A guide to risk assessment
Lenders don’t have access to expertise for decision models and useful RACs
How does this affect lenders?
Without expertise, lenders face hurdles meeting the challenges of growing their businesses, dealing with evolving threats, and meeting regulatory requirements.
How is Lendsqr solving this?
The Lendsqr team is one of the most experienced in loans as they work to support hundreds of lenders on their platform and have seen practically every problem an individual lender could have. Solutions have either been built into the system to solve these problems or they are able to provide expert guidance for free at any time for any lender who requires such. Find out more about our decision engines.
Problem: Lenders don’t have access to capital to scale their lending
How does this affect lenders?
Without capital, lenders face challenges of growth as they may not be able to meet the demand of their borrowers. This means stagnation in a demanding and fast-growing lending market.
How is Lendsqr solving this?
Lendsqr is partnering with onlenders like Sterling Bank, who can use the lender’s lending data to provide capital for onlending.
Problem: Quality SaaS tools for back office management is expensive
How does this affect lenders?
Without tools like chat and helpdesk, lenders are not able to meet the demands of customers who need support. This leads to poor customer services, customer churn, and ultimately the business cannot grow.
How is Lendsqr solving this?
Lendsqr has partnered with Freshworks to provide our startup lenders with up to $10,000 of software credit to let them access the best of SaaS platform for chats and helpdesk.
We made good on our promise, didn’t we? We’ve broken down twelve (12) major problems lenders face in the ecosystem and how Lendsqr is solving all of these problems. Moreover, we’re helping every African get the loans they need to build a better life.
Got questions for us? Send us a message now at growth@lendsqr.com. We’re available to provide all the answers you need.
