The push to make financial services more accessible and affordable in Nigeria continues to gather momentum. Social Lender, a FinTech startup, is the latest to arrive with innovative solutions for Nigerians.
Social Lender, is a lending solution that uses a customer’s own social reputation to ascertain creditworthiness. Now, this is where it gets interesting; the service uses users’ social media profiles, activities and reputation to develop credit scores.
Do you know that your Social Reputation Score determines your Credit Worthiness??? https://t.co/yMcqJNuDY1 pic.twitter.com/Fi45VrXfzj
— Social Lender (@sociallenderng) May 22, 2018
There is a proprietary algorithm and software to rank available social profile according to several predefined parameters. The algorithm pulls information from the social media platform about the user (based on access granted by the user) to generate a Social Reputation Score. Every user is given a Social Reputation Score in percentage.
Thus, loans are guaranteed by the user’s social profile and network. The service allows users to then borrow from banks and other financial institutions based on their social reputation.
The Social Reputation Score is also bolstered by the use of a Social Guarantor while the Social Guarantor provides electronic personal guarantee on the personality of the borrower or the transaction.
.@sociallenderng does not take collateral from people seeking loans. All they need is authentic data from you. Your social reputation score is your asset & collateral #BeAllYouCanBe is still @THEBEAT999FM
— The Catalyst® (@lanreolusola) May 5, 2018
It’s a very interesting innovation.
Social Lender emerged with the belief that a simple access to credit can be beneficial to society. The service aims to bridge the gap of immediate fund access for people with limited access to formal credit.
Founded by Faith Adesemowo and Bade Adesemowo in 2015, Social Lender initially targeted Nigerian banks. “Sterling Bank is the first bank to get on board the product in Nigeria,” co-founder, Bade Adesemowo said.
Do you know lending has become so easy that you can actually lend money with text messages (SMS)
To understand where the world of online loans is headed, we must first understand the complexities of its roots in the pre-online era. pic.twitter.com/XKMZwzCj5d
— Social Lender (@sociallenderng) June 7, 2018
@sociallenderng I so was stranded needed to solve an urgent domestic issues, then I ran to sterlingsociallenderng who urgently bail me out under 5 minutes the loan was directly disbursed into my bank account. Never allow money embarrass u,they're here to savage u,#slreview
— REUBEN JOHN TAIWO (@REUBENJOHNTAIW1) May 1, 2018
Currently, the service works directly with customers. Using multiple channels including its website, mobile app, SMS and USSD code, Social Lender can give loans quickly to customers.
The service has already witnessed some impressive growth in Nigeria. By February 2018, over 15,000 users had registered for the service. There are quite a few testimonies about the service on Twitter and on the company’s blog. Social Lender has also gone international; it now operates in South Africa, in partnership with ABSA Bank.
Social Lender is solving financial problems using Social Reputation Score https://t.co/3gIxmETQld pic.twitter.com/vhYZOKj1w4
— Social Lender (@sociallenderng) May 24, 2018
In May, the startup was one of three Nigerian companies selected to pitch at Venture Clash, a global pitch contest for early-stage companies. Holding at Connecticut, USA, in October, Social Lender will be looking to bolster its offerings with the $1.5m up for grabs.
Technext Newsletter
Get the best of Africa’s daily tech to your inbox – first thing every morning.
Join the community now!
