Most Nigerians don’t have a credit history which affects lenders’ ability to assess loan applications and hence, limits borrowers’ access to credit. However, Lendsqr has partnered with Mono to provide lenders with customers’ bank statement data which assists them in making better informed decisions about borrowers’ capacity to repay their loans.
Access to credit is a major pain point for millions of Africans and Nigerians in particular; from the small business owner who needs capital to grow their business, to the average salary earner who needs a loan for an emergency.
Usually, this isn’t because of an absence of funds to disburse, but an obvious lending barrier that makes it difficult for people to get quick, short-term credit, stress-free.
At Lendsqr, we believe that anyone should be able to access credit whenever they need it, and more importantly, we want to make it easier for lenders to reach borrowers at scale but without breaking the bank. This is why we launched Lendsqr to provide small to medium-sized lenders with cost-effective infrastructure and solutions that help them scale their business and build personalized lending experiences for their users.
- Technology to build out their lending service across mobile, web, and USSD channels
- Intelligent collection for loan repayments
- Regulatory and technical compliance
- Plug and play API integration, and
- Fraud protection tools
Doing more for the next generation of lenders to provide access to credit
The next step for our ecosystem of lenders is easier access to customers’ transaction history to speed up the loan decision process.
To achieve this, we have partnered with Mono to provide a better way for lenders to access customers’ bank statements and transaction data with their explicit consent.
Mono is an open banking platform that enables businesses to connect to customers’ bank accounts to access their financial data or collect direct bank payments. Speaking to Abdul, Mono’s CEO and Co-founder on why Lendsqr chose to partner with the team, our Product Manager, Malaika Ademola-Majekodunmi said that, “Mono was an easy choice after Lendsqr has considered the myriads of data API providers; Mono wins handily on speed, quality, and cost-effectiveness.”
With this partnership, borrowers do not need to have a credit history on any Credit Bureau to have easy access to credit. Instead, they can securely share their bank statements and transaction history with lenders and get loans in minutes without jumping through hoops.
To share their bank statements with lenders, all they need to do is enter their login details on the Mono Connect widget to securely connect their bank accounts. Then the lenders can use their transaction data to make informed decisions and offer loans to them.
What this partnership means for lenders on the Lendsqr platform
Instant access to bank statements
Most borrowers do not have any data on Credit Bureau, and without this data, lenders can’t assess their creditworthiness. On the other hand, 100% of borrowers have bank transactions, and with Mono covering over 30+ financial institutions in Nigeria, lenders can easily collect authentic bank statements and real-time transaction data from their users’ bank accounts in minutes. Users’ identity and account ownership are also verified before their bank statements are shared, so this helps to protect against fraud.
Better underwriting decisions
With access to users’ transaction history, verified income, and identity, lenders are equipped with the information they need to determine creditworthiness more accurately and offer loan amounts that are well suited to a borrower’s needs.
Faster loan disbursements
Access to accurate and quality data from Credit Bureau can be expensive for lenders, and this tends to slow down the loan decision process. Now, with this partnership, lenders can access transaction data faster while users can access credit whenever they need it.
How to get started on Lendsqr
Launching a digital lending proposition is an expensive and complex endeavor, but the Lendsqr team has cracked the lending code. Getting started is easy, you can just reach out to the team at email@example.com and we will walk you through the process.