LAGOS, NIGERIA – Lendsqr, a leading Lending-as-a-Service (LaaS) provider, is pioneering a new frontier in underwriting with the development of an AI-driven voice and video analysis model aimed at improving loan assessment for the underserved population, particularly those in the informal sector with little to no traditional financial documentation.
At the heart of every credit lies a simple question: Will this borrower pay back? While conventional scoring models work reasonably well for the middle class and salaried individuals, they often fail for millions of low-income earners in emerging markets who live and transact outside formal financial systems.
Read also: Lessons from the first lenders who tapped into Lendsqr’s Onlending program
“In many developed economies, and even among Africa’s middle class, credit scoring is fairly straightforward,” said Adedeji Olowe, CEO of Lendsqr. “But once you try to assess a small kiosk trader or a danfo driver who operates entirely in cash, the model collapses. These individuals might be highly reliable, yet they lack payslips, bank statements, or any formal trail of income.”
For years, lenders have relied on proxy indicators like bank statements, call records, or even GPS data to estimate a borrower’s capacity and character. But such data can be invasive, unreliable, or simply unavailable. As Olowe explains, “The core questions are always the same: Can this person afford the loan? And will they pay it back? But the tools we’ve been using to answer these questions don’t work for everyone.”
In an ambitious attempt to address this credit gap, Lendsqr has initiated an experimental project that leverages advanced AI capabilities from Google Cloud to evaluate the credibility of borrowers based on how they speak, respond, express themselves during loan applications, and a lot of other proprietary signals. This project is partly funded by the Nigerian government via the Ministry of Communications, Innovation & Digital Economy and Google.
The early results are promising. In its first phase, the model showed predictive accuracy of up to 76 percent. A modest but significant step in a completely new direction. The project is now entering its second stage, with further refinement underway.
“This isn’t about building a lie detector,” Olowe clarified. “It’s about using technology to pick up subtle signals in a conversation such as tone, confidence, coherence to give lenders additional insight, especially when traditional data points are missing.”
Lendsqr acknowledges the ethical questions such a system presents, especially around privacy and bias. But, the mission remains clear. Without new models, millions remain excluded from formal credit systems or are forced into exploitative loan arrangements.
“If we get this right,” said Olowe, “we could unlock meaningful, responsible credit access for over a 100 million Nigerian adults who’ve been invisible to the financial system for too long.”
About Lendsqr
Lendsqr is a global leader in Lending-as-a-Service (LaaS), helping financial institutions digitize lending operations with scalable, API-driven solutions. By combining deep technical expertise with a nuanced understanding of the financial realities in emerging markets, Lendsqr helps lenders deliver credit more efficiently and inclusively.
The platform enables lenders and other financial institutions to connect with borrowers across multiple channels, including mobile apps (for both Android and iOS), web applications, and APIs for third-party integrations with platforms like credit bureaus, payment providers, and KYC providers. This multi-channel approach allows lenders to reach a broader audience, particularly in underserved and offline communities.
Read also: What is the National Credit Guarantee Company (NCGC)
At the core of Lendsqr’s technology is a powerful decision engine that supports smart risk management. It integrates both traditional credit bureau data and customizable scoring models, empowering lenders to make well-informed lending decisions. The platform also supports a wide range of loan configurations, from standard personal loans to SME-focused products, with flexible features such as equity contributions, guarantor options, and manual loan bookings for customers without internet access.
By offering these features, a free trial and scalable pricing, Lendsqr ensures lenders of all sizes can launch quickly, grow sustainably, and build credit offerings that truly meet the needs of their customers.
For more information, visit lendsqr.com or reach out to marketing@lendsqr.com.
