Canadian Fintech Startup and Credit Rating risk She launched her service in Nigeria, along with the appointment of a new Managing Director, to improve the country’s rate of financial inclusion and economic growth through local credit transfer.
Canadian fintech and credit assessment startup Periculum has launched in Nigeria to address the challenge of domestic credit for underserved markets.
Using a suite of automated credit assessment tools, the company actively seeks to assist the country’s financial institutions in providing credit facilities. The move hopes to close the consumer credit gap while increasing the rate of financial inclusion in Nigeria.
The company also announced the appointment of Damlola Aluede to the position of General Manager, to accelerate its business in Nigeria.
The problem of the credit system in Nigeria
The main problem with the country’s current credit system is that it is not as accessible or far-reaching as it should be. The vitality of financial services such as banking, savings, debt and equity financing, investment management, and point-of-sale lending depends to a large extent on the maturity of the domestic credit industry; However, Nigeria is still somewhat in its infancy.
For context, credit to the private sector in Nigeria is around 12 percent of GDP, which is lower than South Africa’s 129 percent and Malaysia’s 134 percent. The high ratios of credit to the private sector in these countries have helped intensify the growth of the real sector, create innovative innovative possibilities for technology-enabled companies, accelerate financial development, ensure the efficient functioning of the economy, and ensure the prosperity of the private sector.
the Central Bank of Nigeria (CBN) and other development partners including Bank From industry (BoI), and Bank From Farming (BoA), among other things, has embarked on significant credit injections to support vital sectors of the economy, but the dearth of credit assessment infrastructure ensures that many potential borrowers are denied access to loans, and when they do, they can be charged as much as three times the base rate . This financial exclusion has important consequences for the real sector as lack of access to credit can be a disincentive to entrepreneurship, investment, and economic growth.
Speaking at its launch event in Nigeria, Mikhail timetop CollinsPericulum founder and CEO said: “Africa needs domestic credit to stimulate real economic growth. And this is not only bank-to-company credit; It can also be digital lending for short term credit as well as ‘buy now, pay later’ schemes. The absence of technology-backed credit assessment infrastructure has limited the quality and quantity of lending and may be behind the risk premiums that borrowers have to pay, and the harassment of predatory lenders in countries like Nigeria.
“Pricolum will change that. We are the best provider of data analytics and credit assessment services that explicitly target underserved markets. We help our clients reduce long loan application processing times and loan default rates and offer loans to unbanked or unbanked customers in addition to To micro, small and medium enterprises. Through reliable, technology-backed credit assessment services, financial institutions can increase lending to those who need credit.”
Founded in 2019, Periculum helps banking and lending clients identify fraud risks, assess creditworthiness, and analyze existing data. Periculum offers real-time decision making, analysis, and credit underwriting solutions to financial institutions including banks, non-bank financial firms, and fintech companies.
By providing information on clients’ financial worthiness and automating the loan decision process, Periculum clients can collect and analyze borrower information and assign a credit score faster, with real results on financial inclusion in Nigeria and other markets.
Periculum offers data aggregation APIs and platform solutions that collect data from partners including open banking APIs and credit bureaus, to provide financial profiles and complete data to potential borrowers and third party entities.
Regarding its current product and service roadmap, Collins added: “We provide services that include credit model development, SMS data collection and analysis, financial data analysis, and other data analysis solutions. We can help our customers with solutions like fraud detection, insights for lenders based on customer segmentation and customer lifecycle value, insights for retailers and ATM operators, and many other benefits.”
For many countries in Africa, there is still a financial gap. By meeting the challenge of credit assessment, Periculum can build the financial infrastructure that helps address access to financial services and improve development outcomes for millions of people, while providing better opportunities for businesses, financial institutions and lenders.