Nigerian fintech company Lendsqr is seeking to transform the lending landscape by introducing an AI-powered credit scoring system aimed at making borrowing easier for millions of Nigerians, particularly those without formal credit histories.
The innovation is expected to address a longstanding challenge in Nigeria’s financial sector, where many individuals are excluded from accessing credit due to the limitations of traditional scoring methods. Unlike conventional models that rely heavily on banking data, Lendsqr’s AI system analyses over 300 data points, including voice and video inputs, mobile phone usage patterns, payment histories, and other digital footprints. This broader approach allows for a more inclusive assessment of borrowers, even for those who have little or no interaction with formal financial institutions.
With only six percent of Nigeria’s adult population utilizing credit products as of 2023, according to data from veriveAfrica, access to credit remains a major hurdle for many. Lendsqr’s AI-driven credit assessment could significantly ease this bottleneck by enabling lenders to make more accurate and fair decisions, unlocking credit opportunities for a large portion of the underserved population.
The launch of this technology comes at a time when digital financial services are experiencing rapid growth across Nigeria. As more Nigerians depend on mobile phones and online platforms for financial transactions, there is increasing demand for smarter, faster, and more flexible methods of evaluating creditworthiness. Lendsqr’s AI solution is designed to meet this need, offering a pathway for individuals without traditional borrowing records to enter the financial system.
For lenders, the use of AI could greatly speed up the credit approval process. By eliminating the lengthy procedures associated with traditional credit checks, loan providers can assess risk more efficiently, leading to quicker and more reliable loan disbursements. This improvement benefits both borrowers seeking timely access to funds and lenders aiming to reduce default risks.
As Nigeria’s fintech sector continues to expand, Lendsqr’s move could set a new standard for the industry. Other loan providers may soon adopt similar AI-driven technologies to lower risk profiles and broaden their customer base, further enhancing financial inclusion in the country.
