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January 9, 2024
We’ve cracked the lending code
Lending is one of the oldest businesses in the world. Which is why the foundation and superstructure of every modern economy is built on credit. Credit is so important it’s one of the most regulated industries in every country. But just like everything else, it has evolved with technology. Unfortunately, the technology for modern finances could be as expensive and complex as rocket science. This has left thousands of lenders and the hundreds of millions of Africans out of luck.
At Lendsqr, we believe that just like the way the internet created a level playing field and ushered Africa into the modern age, technology for lending should be powerful, accessible, and affordable.
So Lendsqr has cracked the lending code, so that lenders worldwide can have access to the best technology, and use credit to lift billions to their dreams and a better life.
– Adedeji Olowe
Founder at Lendsqr
Without good payments systems, borrowers easily default, leading to lenders spending a great amount of time and money chasing repayments. Most often than not, lenders lose money.
Lendsqr offers various payment methods such as debit cards, which are flexible, and direct debit which is universally available to anyone. With the Lendsqr platform, the system can do partial debits of borrowers’ accounts when they don’t have the complete funds to repay their loans. At least, it reduces lenders’ exposures.
Without the ability to scale, lenders are damned with a business that wouldn’t grow, or grows at the cost of deploying staff to physically seek borrowers. The cost of developing and launching a world class lending stack could be as high as $300,000 if it would have features that guarantee quality and sustainable lending. Most lenders cannot afford this.
Lenders can sign up on Lendsqr, with access to a world-class lending solution, for free. For lenders that want mobile apps, they can be up and running on Google Play Store and Apple App Store within 7 weeks at the most.
Plagued with lack of agility, lenders are forced to wait for over 6 months before they can fully launch their digital business.
Lendsqr lenders can start using the web app within 5 minutes. The BNPL module is available the instant a lender signs on the web. Mobile apps are delivered within 7 weeks.
Without good data, lenders make suboptimal decisions, which leads to loan defaults.
Lendsqr provides lenders with deep ecosystem data that cannot be found anywhere else and provide insights that are extremely difficult to create by individual lenders.
Lenders pay as much as N400 for statement data, and for credit bureaus, they pay for APIs that do not return any data. This forces a lot of lenders to make decisions without quality data input, leading to suboptimal loan books.
Lenders have access to a wider spectrum of Lendsqr ecosystem data for free. Beyond that, Lendsqr has signed partnerships with some of the best data providers in Nigeria to provide quality sources with significant discounts that can be as much as 50%.
Furthermore, Lendsqr is developing its own proprietary phone SDK and statement data that lenders would have access to free of charge to aid their loan decisions. Read more about mobile SDKs.
Without access to a mass of good quality data, a lender either does not grow or spend a lot to acquire customers through digital and traditional marketing.
With API distribution, Lendsqr is partnering with different platforms where loans powered by Lendsqr are embedded within those ecosystems and prospective borrowers can request loans that come directly to these lenders to underwrite. Lenders can grow without spending a dime on marketing.
Without expertise, lenders face hurdles meeting the challenges of growing their businesses, dealing with evolving threats, meeting regulatory requirements.
The Lendsqr team is one of the most experienced in loans as they work to support hundreds of lenders on their platform and have seen practically every problem an individual lender could have. Solutions have either been built into the system to solve these problems or they are able to provide expert guidance for free at any time for any lender who requires such. Find out more about our decision engines.
Without capital, lenders face challenges of growth as they may not be able to meet the demand of their borrowers. This means stagnation in a demanding and fast growing lending market.
Lendsqr is partnering with onlenders like Sterling Bank, who can use the lenders lending data to provide capital for onlending.
Without tools like chat and helpdesk, lenders are not able to meet the demands of customers who need support. This leads to poor customer services, customer churn, and ultimately the business cannot grow.
Lendsqr has partnered with Freshworks to provide our startup lenders with up to $10,000 of software credit to let them access the best of SaaS platform for chats and helpdesk.
We made good on our promise, didn’t we? We’ve broken down twelve (12) major problems lenders face in the ecosystem and how Lendsqr is solving all of these problems. More so, we’re helping every African get the loans they need to create a better life.
Got questions for us? Send us a message now at [email protected], we’re available to provide all the answers you need.
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The truth is, most lenders don’t need to have a loan app, not only because of the stress of having one, but because the net impact on the business might even be negative.
