The Nigerian Loan Story: Data to the Rescue
In 2019, Nigeria witnessed a transformative shift in its financial landscape with the advent of mobile money and Neo Banks. This marked a groundbreaking departure from traditional banking practices, decentralizing the necessity for physical visits to banks for basic transactions. The introduction of these innovative platforms brought about a palpable sigh of relief for the average Nigerian, streamlining financial services and enhancing accessibility.
However, as Nigeria’s economic challenges deepened, so did the proliferation of Quick loan apps, capitalizing on the financial vulnerabilities of the average Nigerian. Currently, the Nigerian financial space is host to a staggering 161 approved loan apps, a figure that comes after the delisting of approximately 37 others.
Loan App vs Nigerians
NeoBanks like Palmpay came into the Nigerian fintech space with a different approach, which was offering instant loans to users and trust me when I say it took a different turn, and they had to result to stricter approach like limiting phone functionalities and incessant phone calls to ask for loan payment (a potentially draining experience, if you ask me).
Some other loan apps resorted to extreme measures, spreading rumors about defaulters to their contact lists, falsely labeling them as HIV-positive or even branding them as thieves. These harsh tactics all for loan recovery (so inhumane!)
Truth is African countries, including Nigeria, have faced challenges in accessing loans since as far back as 2005 up to 2011. This struggle has been notably more pronounced compared to counterparts in South America and Europe. The historical context emphasizes the urgency for a more comprehensive and data-driven approach to granting loans to deserving individuals in Nigeria.
And while loan-worthy metrics like credit score are still trying to find its groove, how do we grant loans to people that can actually pay?
Data to the Rescue : Here to Save the day
In this past year or so, new roles like loan recovery officers has sprouted up with the aim of recovering loan for customers, but has this solved the problem it came to address?
Plan ahead or find trouble on the doorstep
In the pursuit of financial foresight, the importance of planning ahead becomes evident. Leveraging the abundance of data in Nigeria, it becomes crucial to providing predictive insights into potential loan defaulters.
Imagine extending a 150,000 Naira loan at a 5% interest rate with a payment duration of 3 months to someone earning 30,000 Naira per month
📌 Truth is some loan apps might not care about your income; they just want you to pay, even if it feels like paying from your nose!
We are in a Dilemma, if you ask me.
Autogon in all of this
In the midst of this financial maze, Autogon steps in, recognizing the wealth of financial data at play, the Autogon platform boasts the ability to conduct bespoke data analysis with accurate AI models for predictive analysis.
Experience the Autogon Advantage: Watch Our Demo Video
This demo video unveils the power of Autogon’s bespoke data analysis and accurate AI models, providing a firsthand look at how predictive analysis can transform the landscape of loan default scenarios.
Also, to uncover the Autogon advantage and explore a multitude of possibilities across various use cases, check us out here: Autogon.ai
Till next time,
