ALP Seminar 2019

Social Lender offers data authentication of loan applicants with high capacity technology – Chief Technology Officer

Co-founder, Social Lender, Bade Adesemowo

Chief Technology Officer, Social Lender, Bade Adesemowo has declared that the fintech platform has the technological capacity to detect and authenticate loan applicants’ data on social media before its authorization by financial institutions.

He said financial institutions in the country can access the fintech company’s software to expand their services and loan database.

The CTO boasted that the platform was designed with modern technology that can provide loan applicants social media data for its clients irrespective of their locations.

Social Lender provides financial institutions microcredit based on social media reputation of individuals who are under-banked or have little or no access to formal credit. It focuses on social reputation on mobile, online and social communities.

Adesemowo said the need to mitigate huge financial exclusion gap and to expand financial institutions options in data gathering for loan applicants before authorization centres round the firm’s operations.

He submitted that utilising and optimizing innovative options especially through social lender service will boost financial inclusion and bring more development to the financial sector.

“Our system is actually training itself (machine learning) based on data we acquire to improve performance of transactions on the system. Our solution is trained to detect fake data in 99 per cent of cases.

Established financial institutions across the world makes use of credit history, credit bureau data and credit scores to make lending decision which is a challenge. In Nigeria, less than 10% of the Adults have viable credit bureau data which is a challenge, in Africa less than 50% has this required data.

In America there’s a 20% of the Adult population that lack access to formal credit. Significantly smaller market size, but a market gap all the same. This is where Social Lender comes in. There’s a need for an Alternative measure of Trust for these huge populations. That Alternative Scoring Solution is Social Lending.’’

The Chief Executive Officer of the fintech firm, Faith Adesemowo stated that Social Lender was built to collaborate with other fintech firms for healthy competition in the industry.

The fintech firm which presently operates in two countries according to the CEO is targeting and focusing on market expansion to more countries for financial literacy and inclusion.

“We are in two countries with four partners in total and we look forward to doing more, very soon we will be launching in more countries. Our approach is actually collaboration and not competition.

We built Social Lender to be flexible and accommodate additional business rules from each partner we are implementing with. This is important because every partner targets various segments of the market and in some cases there are regulatory or internal policies that the partner adheres to.”

Product Owner of the firm, Mudi Ogboru described fintech as a viable tool of reaching the unbanked individuals in the country.

He urged fintech firms to use inability of financial institutionsto operate nationwide as an opportunity to pitch tent with the financially excluded people.

“There’s a huge market in Nigeria, fintech companies needs to move and establish their services nationwide. Banks are only rendering services to about 40 Million Unique individuals in a country of 200 million unique individuals. Fintech can start collaborating and building networks to deliver financial services to over 100 million Nigerians that the banks are no serving, he submitted.”