Credit is evolving fast, especially in South Africa, where the lending industry is poised for substantial growth. In fact, according to the National Credit Regulator (NCR), the South African credit market grew by 7.81% in 2022, with over 27 million credit-active consumers. Total consumer credit granted surged to over R146 billion, reflecting the increasing demand for access to credit.
For lenders, staying competitive in this ever-changing market means leveraging the right tools to manage loans efficiently, remain compliant, and safeguard against fraud.
But with so many platforms available, how do you choose the best loan management software? That’s where ACPAS and Lendsqr come in. While both provide lending technology, they offer unique features to meet lenders’ needs. But which one is right for you?
Let’s examine each critical aspect, compare their strengths, and discover how these platforms can help you stay ahead in the ever-competitive South African lending ecosystem.
About ACPAS
ACPAS is part of Rent Pay (Pty), based in Centurion, South Africa. Founded by a team of industry experts, ACPAS is a cloud-based loan management software specifically designed for lenders operating in South Africa. It focuses on automating and simplifying loan management processes. ACPAS is committed to delivering solutions that empower lenders to navigate the complexities of the South African lending market. Its leadership includes Jaco Folscher, a notable figure who is a member of the Board of Directors at the Microfinance South Africa (MFSA).
About Lendsqr
Lendsqr is a software-as-a-service (SaaS) fintech providing end-to-end lending technology, algorithms, and networks to small and large lenders, enabling them to lend at scale, sustainably, ethically, and profitably. Lendsqr was founded in 2018 by CEO Adedeji Olowe. Since its inception, Lendsqr has grown rapidly, offering various tools and integrations that allow lenders to easily create, customize, and manage loan products. Whether you’re a microfinance institution or a larger retail lender, Lendsqr’s platform is designed to help you make smarter lending decisions and reach new markets.
Comparing features and benefits: ACPAS vs Lendsqr
Let’s examine how ACPAS and Lendsqr compare in some of the numerous critical areas a smart lender would pay close attention to, from onboarding to integrations and pricing.
Getting started
ACPAS: Getting started with ACPAS is not as straightforward, especially if you’re looking to “window shop” or survey the platform. You’ll need to schedule a personalized demo consultation with their team.
Lendsqr: Lendsqr offers one of the fastest setups in the industry. You can sign up and approve your first loan in just minutes, making it an excellent option for lenders eager to get their business up and running quickly.
Channels
ACPAS: Primarily web-based, ACPAS offers a paperless solution and keeps it simple with a basic web app for managing loans.
Lendsqr: Lendsqr takes its offering a step further by providing a complete digital banking experience through its web application. In addition to lending solutions, it supports a range of financial services such as savings, investments, airtime, and bill payments. These services can be customized to suit the unique needs of individual users. For lenders in the retail market experiencing rapid growth, Lendsqr offers mobile apps in three different variations.
The first option is the Progressive Web App (PWA), a cost-effective solution tailored for Microfinance Banks (MFBs) that can be launched within one week. The second option is a white-label app, which allows for complete colors, text, and branding customization.
Lastly, there’s the fully customizable mobile app, giving lenders complete flexibility in tailoring their app to meet specific business requirements.
Products and portfolio
ACPAS: ACPAS focuses exclusively on loan management, offering lenders a comprehensive platform to manage loans from start to finish. It automates workflows, sends payment reminders, and generates detailed reports.
Lendsqr: Lendsqr goes beyond loans, providing a full suite of digital banking services, including savings, investments, airtime, and bill payments. This can be a defining moment for lenders looking to offer more than just loans to their customers or lenders who see a possibility of scaling in the future.
Verification and decisioning
ACPAS: ACPAS integrates with local credit bureaus and simplifies credit risk assessments with an automated scorecard. It also offers automated credit vetting tools, helping lenders make faster, more informed decisions.
Lendsqr: Lendsqr offers KYC configuration using tiers, i.e., customers can be categorised into tiers based on the information and documents they provide, giving you greater control over your lending decisions. Lendsqr offers lenders a variety of customisable decision models tailored to their specific business needs. These robust models feature over a hundred risk control parameters. A worthy mention is the Lendsqr Karma service, the largest private blacklist database of fraudsters and bad actors that’s made available to Lenders in the Lendsqr ecosystem. The Lendsqr mobile SDK API also enables you to ethically access data from customers’ mobile devices, helping you make more informed and smarter credit decisions.
Repayment and recovery
ACPAS: ACPAS automates late payment reminders and integrates with DebiCheck for secure debit order management.
Lendsqr: Lendsqr provides an extensive range of payment integrations with top-tier providers like Paystack and Flutterwave. Additionally, our lenders have access to international payment platforms such as Stripe, Helcim, and GoCardless. Lendsqr also empowers lenders to automate payment collections through automated direct debit mandates and offers ethical debt recovery solutions, leveraging technology like scheduling tools and AI algorithms to enhance efficiency and fairness.
Collaborators and integration
ACPAS: ACPAS is integrated with the South Africa Credit and Risk Reporting Association (SACCRA) and focuses on compliance within the South African regulatory framework. It also provides anti-money laundering tools to protect against fraud.
Lendsqr: Lendsqr simplifies integration for our lenders, providing all the essential APIs upon sign-up. This means you can join and start lending in minutes without the hassle of dealing with multiple tech providers. Lendsqr also offers integration to multiple credit bureaus like TransUnion at an affordable fee, amongst many other integrations.
Pricing
ACPAS: ACPAS does not publicly advertise its pricing but is generally aimed at medium to large lenders who need customized loan management solutions.
Lendsqr: Lendsqr’s transparent subscription model starts at R4,000/month for the Starter plan and R20,000/month for the Pro plan. The platform also offers a grace period for downgrades to the free plan, making it flexible and affordable for many lenders. Simply put, there’s a payment option suitable for every lender.
Which is right for your loan business?
Which is the best loan management software for South African lenders, Lendsqr or ACPAS? The answer depends on your needs.
Opt for ACPAS if local compliance, lending on a small scale, and staying within familiar territories are your top priorities. Choose Lendsqr if you’re a rapidly growing lender looking to scale beyond the borders of South Africa, especially if you’re keen to offer a broader range of financial services (like savings, investment, or BNPL), want flexibility with payment integrations, APIs, customizations and need fast onboarding and go-live.
Ultimately, both platforms are solid choices for lenders in South Africa, but your decision should align with your business goals. And if that decision aligns with Lendsqr, book a free demo with us now.
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