Lendsqr or ApPello: Which is the best loan management software in Botswana?

Botswana’s lending landscape is transforming, and with it, the technology needs of lenders are changing too. Recent shifts in regulation, combined with an expanding appetite for digital financial services, have set the stage for a lending revolution. 

According to the Non-Bank Financial Institutions Regulatory Authority (NBFIRA), there’s been a marked increase in the number of new players entering the microfinance space over the past two years, driven largely by the demand for accessible credit among SMEs and underserved individuals. 

But with rapid growth comes the need for smarter, more sophisticated loan management systems (LMS) to keep pace.

Botswana’s lending environment is pushing towards more efficient and transparent operations. With mobile money services becoming the default financial tool for a large segment of the population, lenders need systems that can seamlessly integrate these services while managing risk and ensuring compliance. 

Moreover, recent digital transformation initiatives have spotlighted the importance of data-driven decision-making, through better customer insights or streamlined workflows.

In this context, choosing the right LMS is no longer just about managing loans; it’s about who can best enable lenders to harness this momentum and thrive.

In this article, we’ll be comparing Lendsqr vs ApPello to help you decide which loan management software partner is better.

About ApPello

ApPello is all about making banking easier and smarter. Founded in 1998 and based in Budapest, Hungary, ApPello provides software solutions that help banks manage everything from loan applications to risk assessment and debt collection.

They’ve expanded across Europe, with offices in Vienna, Prague, and Bucharest, and are led by CEO Béla Vér.

ApPello has earned recognition for their innovative work, including the Web Excellence Award and a nomination for the British Interactive Media Association (BIMA) Award.

They’ve also been named a top mobile app developer by Clutch.co and listed among the Top 1000 Global Companies.

Recently, ApPello has been adding even more advanced features to their platforms, like AI-powered tools that help lenders make better decisions and improve debt collection.

They’ve also upgraded their loan origination system, making it simpler for banks to use while keeping all the flexibility they’re known for.

At its core, ApPello focuses on helping banks and financial institutions succeed by providing them with powerful, user-friendly tools that are ready to tackle today’s challenges.

About Lendsqr

Lendsqr, established in 2018, is a Nigerian fintech company specializing in Lending-as-a-Service (LaaS) solutions. Founded by Adedeji Olowe, Lendsqr’s mission is to simplify the lending process by providing sophisticated, end-to-end loan management software tailored to the unique challenges of the African market. 

With offices in Wilmington, Delaware, USA; Ruislip, London, UK, and Nigeria, Lendsqr offers a cloud-based platform that enables lenders to build, launch, and scale their digital lending operations efficiently. The platform supports multiple channels, including web, mobile, USSD, and APIs, facilitating seamless integration with local payment systems and enhancing financial inclusivity. 

In April 2022, Lendsqr secured $1 million in seed funding, reflecting investor confidence in its innovative approach to addressing the credit gap in developing countries.  The company’s product suite includes features such as loan origination, credit scoring, disbursements, and collections, all designed to streamline the lending process for both lenders and borrowers. 

Lendsqr’s commitment to bridging the credit gap and improving lives in developing countries is evident in its continuous efforts to provide cutting-edge technology and support to its clients. By empowering lenders with the tools they need to succeed, Lendsqr is playing a pivotal role in transforming the lending landscape across Africa and beyond.

How easily can you get started?

Lendsqr’s self-service model offers immediate access, appealing to lenders who prefer to independently explore and implement solutions without delays. This can be particularly useful for smaller institutions or startups who want to deploy as quickly as possible. 

But, Lendsqr is also consultative and can help larger lenders design bespoke solutions and products, ensuring that their specific needs and complex requirements are met effectively.

You can book a demo right here.

ApPello, on the other hand, typically requires a more personalized onboarding process. Prospective users can schedule a demo consultation, send an email or download the brochure to explore the platform’s capabilities. Their consultative approach may be more suitable for larger organizations with complex requirements, because it allows for a tailored setup that aligns closely with specific operational needs. While this ensures a customized fit, it may require more time and coordination during the initial stages.

Available platform channels for serving and reaching users

When it comes to accessibility and user reach, Lendsqr takes a more inclusive and multi-pronged approach. Its combination of a progressive web app, customizable white-label mobile apps, USSD capabilities, and web SDK provides a high level of versatility. This makes Lendsqr particularly attractive for lenders aiming to cover both tech-savvy users and those in less connected environments.

Featured read: Lending with USSD—opportunities, challenges, and limitations

ApPello, while offering a sophisticated and comprehensive web-based loan management platform, appears more suited to environments where internet access is reliable, and the need for mobile or offline solutions is not as pressing. This positioning might work well for established institutions in mature markets but could be a limitation in regions where mobile and offline options are crucial.

How effectively it allows lenders to manage, monitor, and adapt their loan offerings

Both platforms offer robust portfolio management features, but they approach it differently based on their target users.

Lendsqr’s portfolio management features have flexibility and customization at their core:

1. End-to-end loan management: Lendsqr covers the entire loan lifecycle—from application to disbursement, servicing, and closure. Lenders can manage different types of loans, customize them based on borrower needs, and make quick adjustments to adapt to market trends. This makes Lendsqr ideal for lenders needing agility in a dynamic lending environment.
2. Product customization: Lendsqr allows lenders to create and manage a wide variety of loan products tailored to different borrower segments, whether it’s personal loans, SME loans, or specialized microloans. You can easily activate, deactivate, or modify loan products to match borrower demand.
3. Branch and team management: Lendsqr also provides features for managing different branches and teams. Permissions can be customized to ensure that specific branches or teams only access the customers assigned to them, maintaining security and clear accountability.
4. Comprehensive portfolio insights: Lendsqr’s dashboard offers a holistic view of the lending operations, tracking essential metrics like disbursements, collections, delinquencies, and overall portfolio health. These analytics help lenders make data-driven decisions and adapt strategies to improve performance.

ApPello’s approach to portfolio management is rooted in its comprehensive banking experience:

1. Complete loan lifecycle coverage: Similar to Lendsqr, ApPello manages loans from origination through to disbursement and closure. It’s designed to cater to both consumer and corporate loans, offering flexibility for different lender profiles.
2. Collateral management: ApPello stands out for its built-in collateral management feature, which is particularly beneficial for lenders dealing with secured loans. This feature keeps track of pledged assets, making it easier to link collateral with loan products and ensure secure lending.
3. Advanced analytics for risk: ApPello integrates advanced risk monitoring and predictive analytics, providing deep insights into portfolio health and risk levels. This proactive risk management approach is helpful for identifying potential issues before they escalate, so that lenders stay ahead of problems.

How Lendsqr and ApPello tackle risk assessment and credit management

Lendsqr takes risk management to the next level with Oraculi, a decision engine built specifically for risk assessment in the African lending landscape:

1. Oraculi decision engine: Oraculi includes several modules designed to help lenders make informed credit decisions:
   • Karma: The largest private blacklist database, freely accessible to lenders. It helps identify risky borrowers by providing insights based on previous lending history.
   • Ecosystem, Loci, and Whitelist: These modules aggregate data from various sources, helping lenders understand borrower profiles better and make data-backed credit decisions.
   • Statement and Periculum: These tools allow for deeper financial insights into borrower behavior, utilizing data from bank statements and other financial records to evaluate creditworthiness.
   • Risk scoring & credit bureau integration: Lendsqr integrates directly with credit bureaus, allowing lenders to access formal credit data and generate accurate risk scores.
2. Customizable decision models: Lendsqr’s platform supports lenders in creating their own risk models. You can customize decision criteria based on borrower data, enabling more tailored credit assessments that align with your risk appetite.

ApPello also places a strong emphasis on risk management, leveraging technology to drive better credit decisions:

1. AI-driven credit assessment: ApPello’s platform uses AI algorithms to analyze borrower data, identify patterns, and provide predictive insights. The AI models help lenders evaluate the creditworthiness of applicants more accurately and identify potential risks before they become a problem.
2. Credit scoring and rating: ApPello offers integrated credit scoring and rating systems to evaluate loan applicants, providing a detailed understanding of risk levels. It uses both internal and external data to generate reliable credit scores.

What each platform brings to the table for API integration and customization

Lendsqr’s approach to API integration is comprehensive and designed for modern, developer-friendly environments. The platform’s Adjutor API suite is built to cover all aspects of the loan lifecycle:

1. Full loan lifecycle coverage: Lendsqr offers a comprehensive set of APIs that cover the entire loan lifecycle—from onboarding to credit decisioning, disbursement, collections, and even customer management. The focus is on ensuring that every step of the lending process can be integrated with existing systems.
2. Customizable credit decision APIs: Adjutor includes APIs for credit decisioning, including modules like:
   • Karma: Lenders can use this API to access the largest private blacklist database, giving them the ability to vet borrowers against previously identified high-risk profiles.
   • Ecosystem data & risk assessment criteria: These APIs allow lenders to integrate diverse data points from their own systems or third-party sources to inform risk assessment and decision-making.
3. Identity verification and payment APIs: Adjutor includes APIs for identity verification, such as BVN image matching (particularly relevant in Nigeria), to authenticate borrowers efficiently. Payment APIs also provide options for automated collections via direct debit mandates, integrating with both local providers (Paystack, Remita) and international payment channels (like Stripe and GoCardless). These options help lenders manage payment collection seamlessly, reducing the manual burden.
4. Web SDK for loan embedding: Lendsqr offers a web SDK that allows lenders to embed loan services directly into their existing websites or platforms. This is ideal for businesses looking to add lending capabilities to their current service offerings without building new infrastructure from scratch.

ApPello’s API integration focuses on delivering a flexible infrastructure that meets the needs of banks and financial institutions:

1. API-driven credit infrastructure: ApPello provides an API-first approach that allows financial institutions to connect their loan origination and servicing systems with other internal tools or third-party platforms. Lenders can automate workflows and streamline credit processing with this infrastructure.
2. Custom integration for risk and workflow automation: ApPello’s APIs are designed to work seamlessly with its AI-driven risk assessment and loan lifecycle management systems. Lenders can integrate these APIs to automate risk scoring, document verification, and credit approval processes. However, compared to Lendsqr, ApPello’s APIs focus more on traditional banking needs rather than niche services like USSD or localized payment systems.
3. Integration with core banking systems: ApPello’s APIs are also designed to integrate directly with core banking systems, providing a holistic solution for financial institutions looking to extend their digital lending capabilities. This makes it an attractive choice for larger banks needing a solution that integrates closely with their main operational infrastructure.

Basically, if you are looking for a highly flexible API solution that allows you to build custom workflows, serve underserved markets, and integrate with both local and international payment systems, Lendsqr’s Adjutor is the stronger choice. For larger financial institutions that need a well-integrated solution to extend existing credit infrastructure and automate traditional workflows, ApPello provides a solid foundation.

How Lendsqr and ApPello approach payment collection and managing NPLs

Lendsqr takes a comprehensive approach to payment collection, designed to support lenders across different markets globally.

Lendsqr provides several payment options beyond just direct debit. Lenders can collect repayments through card payments, virtual accounts, and automated direct debit (available specifically in Nigeria). This flexibility allows lenders to choose the best payment method depending on the borrower’s preference and geographic location, making Lendsqr highly adaptable for different regions.

To reduce delinquency rates, Lendsqr uses multiple channels to remind borrowers of upcoming payments. This includes email, SMS, and push notifications, which are automatically triggered through the system. These reminders are essential in encouraging timely repayments and minimizing missed payments, providing a proactive solution to reducing NPLs.

Lendsqr integrates with both local and international payment providers, including Paystack, Remita, Monnify, Stripe, and GoCardless. This level of integration ensures that lenders have access to a wide variety of collection tools, suitable for both local and international borrowers. By providing a unified payment collection experience, Lendsqr positions itself as a global player in loan management.

ApPello offers a dedicated Debt Collection System designed to handle NPLs efficiently. This system provides both soft and hard collection strategies, allowing lenders to choose different workflows depending on the situation. Soft collections might involve gentle reminders and borrower engagement, while hard collections are more formal, focusing on recovering overdue amounts through more structured measures including:

• Legal notices
• Partnering with third-party debt collection agencies
• ApPello’s system manages the process of collateral repossession if a borrower defaults

One of the strengths of ApPello is its use of artificial intelligence to predict payment behaviors. By analyzing data, the system identifies the best methods to encourage repayments, whether through targeted reminders or tailored follow-up actions. This predictive capability ensures that lenders can anticipate borrower behavior and address potential defaults before they escalate, which is particularly useful in reducing the incidence of NPLs.

Featured read: Which is better for loan repayments: Cards or Direct Debit?

How much do they cost?

Lendsqr’s transparent, tiered pricing structure provides clear options for lenders at different stages of growth, facilitating straightforward budgeting and planning. There’s a free plan, ideal for individuals or small lenders starting out, this plan provides essential features at no cost, allowing users to manage personal lending activities.

• Pro plan: Priced at $200 per month, the Pro plan includes all features of the Free plan, plus additional functionalities such as feature customization, web app domain settings, team management, offer letters, and a mobile app (Android only).
• Business plan: At $500 per month, this plan encompasses all Pro features and adds referral configurations, third-party beneficiaries, savings and investment management, Adjutor API service, white-label mobile app, and interbank transfer capabilities.
• Enterprise plan: For $1,000 per month, the Enterprise plan offers all Business features along with a custom mobile app, third-party integrations, and CBA/ERP integrations, catering to large organizations requiring advanced lending infrastructure.

ApPello’s pricing model is not publicly available on their website, which means they customize their prices based on the specific needs and scale of the client. Prospective clients are encouraged to contact ApPello directly to receive a tailored quote that may come at a premium.

The choice is up to you

Choosing between Lendsqr and ApPello for your loan management software needs depends largely on your lending model, target market, and operational requirements. Both platforms offer strong features, but their approaches and market focuses differ in several key ways.

Lendsqr stands out for its adaptability, versatility, and commitment to making lending accessible across different regions. ApPello, on the other hand, takes a more structured and sophisticated approach to loan management, with a focus on serving larger financial institutions.

If you’re truly curious about if Lendsqr is a better fit for you, simply send a message to [email protected].