Lendtech platform operators in the country have urged the federal government through the office of the Vice President, Prof. Yemi Osinbajo, to disburse the government’s TraderMoni loans through technology platforms in order to bring more Nigerians into the financial inclusion net.
TraderMoni is an empowerment scheme of the federal government created for petty traders and artisans across Nigeria. It is a loan programme.
Co-founder and CEO, Social Lender, Faith Adesemowo said lending technology companies across the country have been using technology to disburse loans to people irrespective of their status with different measures to determine their ability and willingness to pay back.
She cited the example of Social Lender’s social reputation score, which can be used to profile applicants’ details in order to ascertain who is eligible for loan and loan repayment.
A similar procedure should be extended to the “petty traders and artisans who are a direct beneficiary of TraderMoni”, she said.
She added that the score will evaluate the type and size of formal credit the trader requires for her business or personal needs.
According to her, if TraderMoni partners with the lendtech firms’ such cooperation will ensure that before loans are disbursed, recipients would have gone through financial literacy sessions to educatethe applicants on money management, investment instruments and the benefits accruable from such venture.
“Currently our loan default ratio is under 5 per cent. This is good for unsecured lending if you compared with the microfinance and other conventional lenders,” Adesemowo said.
She explained that Social Lender is a digital financial services platform that financial institutions can leverage to extend service and value to the under-served and unbanked demography.
The Managing Director/Chief Executive Officer, Xpress Payments, Oluwadare Owolabi said financial inclusion allows people and businesses to have access to useful and affordable financial products and services that meet their needs.