“My grandpa was a lender, and If I was my grandpa in today’s world, these are the things that I would do differently.
Credit penetration is low in Africa because it is hard to get the data needed to check creditworthiness, and payment is still an issue for credit use cases.
For instance, banks rely on credit bureaus to access Credit history data. However, a lot of African businesses and consumers don’t have their data on the credit bureaus, which makes it hard for banks to serve them. Also, the current payment products used by financial institutions don’t work for credit use cases, as repayment triggers fail to take repayment when due, which leaves financial institutions at the mercy of borrowers.
My approach will be to access alternative data to check for creditworthiness from the places where borrowers earn and also deduct payments from the same source of the data.
We have used this approach to disburse more than $18m to more than 314k consumers without human intervention since our launch in 2021, with approvals in less than a minute and instant disbursements upon approval, resulting in an almost 100% success rate in repayments.
Our lending partners love us because they do not experience defaults due to our approach, and our customers, who other financial institutions would have excluded, can now access credit on Veend.
Credit is a basic necessity everyone needs access to, and it will drive prosperity in Africa.
Join us in making our vision a reality.
Become a Lending Partner on VeendHQ (Techstars ’23) today. https://lnkd.in/dHaQqw_V
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VeendHQ is a leading Fintech platform in Africa that provides seamless and on-demand funding access to individuals and businesses who have verifiable income.