KAMPALA, UGANDA– Lendsqr, a leading Lending-as-a-Service (LaaS) company that provides software for building and managing loan products, has officially launched in Uganda. As part of this move, Lendsqr is introducing a new artificial intelligence (AI) tool that uses voice and video responses to help lenders better assess borrowers who don’t have formal financial records.
In Uganda, thousands of people, from boda boda riders and chapati sellers to second-hand clothes traders, earn a living daily but are often left out of formal lending systems. Most of them don’t have payslips, bank statements, or any form of credit history, making it hard for lenders to assess them using the usual tools.
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“With this launch, we’re trying to help lenders answer one simple but tough question: will this borrower repay?” said Adedeji Olowe, CEO of Lendsqr. “A mama lishe or boda boda rider in Mwanza might never have walked into a bank, but that doesn’t mean they’re not creditworthy. They just need a system that sees them.”
Traditionally, lenders have tried to use indirect data like bank transactions, call records, or even GPS movement to judge a borrower’s reliability. But this data is often hard to get, unclear, or just not useful for many informal borrowers. As Olowe puts it: “The big questions have always been the same: can the borrower afford to repay, and will they? But most of the tools lenders rely on weren’t built for people outside the formal system.”
To help bridge that gap, Lendsqr has introduced an AI model, built with support from Google Cloud and funding from Nigeria’s Ministry of Communications, Innovation & Digital Economy. This tool looks at how a person speaks during their loan application, focusing on tone, clarity, and confidence, to give lenders additional insight, especially when they don’t have other financial data.
In its first round of testing, the tool was able to predict loan repayment behavior with up to 76% accuracy. Now in its next testing phase, the technology is being extended to lenders in Uganda, particularly those working with informal or cash-based borrowers.
“This isn’t about replacing credit bureaus or human decision-making,” Olowe emphasized. “It’s about giving lenders another option when they don’t have payslips or bank records to work with.”
Lendsqr is also aware of the ethical issues that can come with using AI in lending decisions, including privacy concerns and bias. But the company says the bigger issue is that too many Ugandans are left out of formal credit systems entirely or worse, end up borrowing from predatory lenders.
“If we get this right,” Olowe said, “we can help more Ugandans, especially those working hard in the informal economy, get fair access to loans.”
With this rollout, SACCOs, fintechs, and banks in Uganda can now use Lendsqr’s tools to provide loans via mobile apps (Android and iOS), web platforms, or direct integration with their existing systems. The platform also connects with local and international credit bureaus, payment gateways, and KYC service providers.
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About Lendsqr
Lendsqr is a global leader in Lending-as-a-Service (LaaS) that provides digital tools to help lenders launch and manage credit products for individuals and small businesses. With offices in Nigeria, Rwanda, the UK, the US, and the Caribbean, Lendsqr equips lenders with everything from loan application portals to credit decision engines.
The system supports different types of loans, including personal and small business credit. It also works for borrowers who are offline or unbanked, offering options like equity contributions, guarantors, and manual loan processing. Lenders can test the system with a free trial before committing.For more information, visit lendsqr.com or reach out to marketing@lendsqr.com.
