Interswitch, partners banks to introduce lending services for underserved Nigerians

Interswitch, in collaboration with some banks, on Friday, introduced lending services, aimed at assisting the underserved Nigerians to easily get loans.

During the unveiling in Lagos, Mr Akeem Lawal, the Divisional Chief Executive Officer for Switching and Processing, Interswitch said that the multichannel lending platform would bridge the gap between the credit providers and the customers.

Lawal said that in advanced economies, credit was a core backbone of the financial system.

He said that it was not so in Nigeria and Africa, due to difficulty of accessing the loan and the possibility of paying back the loan.

According to him, the lending services will help to solve the problems associated with getting loans.

”We started this journey three years ago, looking for how to solve lending problems in Nigeria.

”We looked across the market and saw alternative approaches designed specifically for Africa, for giving and getting loans.

”Interswitch lending service is a simpler, smarter lending platform for low-level retail lending.

”Today, we are addressing the underserved, but in the future, it will be much more,” he said.

Lawal said that historically in Nigeria, there had been long-standing gaps in availability of credit or loans to individuals and businesses within underserved demographics of the Nigerian population.

He said that these people had experienced difficulties in accessing unsecured, short-term micro-loans from financial instructions for several reasons.

According to him, Interswitch has now partnered with six banks and three innovative credit providers to address this challenge with the introduction of the Interswitch Lending Services Platform.

”This service essentially resolves the ‘missing middle’ challenge by providing a holistic proprietary credit analysis, scoring and management technology, which bank and non-bank credit providers can leverage to provide non-collaterized micro and nano-loans to individuals and SMEs across various channels.

”It bridges the gaps currently existing in Nigeria, as far as access to credit between deserving but underserved individuals and SMEs on one hand, and credit providers on the other.

”This is by means of reliable lending and de-risking engines based on customers’ transaction history and digital footprints.

”Customers can use any of the ATM, mobile banking apps or USSD channels to access loans, essentially achieving the goal of allowing different customer segments to meet personal and small business needs, thereby accelerating growth in business activities within Nigeria’s resurgent economy,” he said.

Current bank partners who are on board Interswitch Lending Services include FirstBank, UBA Bank, Heritage Bank, Unity Bank, Fidelity Bank and Ecobank. There are also three Lending Partners; Kwikcash, Paylater and Ferratum.

Mr Ekechi Nwokah of KwikCash commend Interswitch for playing an important role towards moving the financial sector forward.

Nwokah said that the lending service was really critical for the country to progress.

Mr Bayo Olarewaju of First Bank said that the bank believed in making banking easy for consumers, hence, partnering with Interswitch for the lending services.

”Lending will be on the go now. We want to push the digital revolution,” Olarewaju said.