In May 2017, the bills on Secured Transactions in Movable Assets Acts (Collateral Registry Act), 2017 and the Credit Reporting Act, 2017 were signed into law by Nigeria’s Vice President, Prof Yemi Osinbanjo. This means that individuals with cars could register them as movable assets on the National Collateral Registry as collateral to secure loans from banks and other financial institutions.
The Credit Reporting Act means that for any person that has taken a loan from any lending institution, his or her information would be available to serve as credit history for him in subsequent loan applications. The following year saw both laws being implemented although it was not very effective. Like so many laws signed before them, the two laws were not solving the problem they were meant to which is helping to provide credit history information for banks and lending institutions while improving the credit score of the average Nigerians.
There is a huge consumer credit opportunity in Africa which is caused by the lack of accessibility to retail banking infrastructure services. Access to credit is a big problem in Africa, Indicina is building the infrastructure to unlock it.
Indicina, a Nigerian fintech With its application programming interface-based platform, has set out to solve this problem by building products that aid lenders throughout the credit lifecycle. Indicina has built an innovative retail banking platform to drive better customer engagement, automate everyday banking back to office operations including underwriting, risk assessment, and decision making by leveraging advanced analytics; all housed within a carefully crafted suite of API. Their ultimate goal is to help advance financial inclusion and more importantly to increase the ability of businesses to drive product adoption. This aid starts from when loans are requested to decision making, disbursement, and collection of loans. Founded in 2018 by Yvonne Johnson, YemiAjao, Jacob Ayokunle, and Carlos del Carpio. The platform offers application programming interface-driven software to digitize the lending business with their flagship product Originate. Originate is an analytics-driven approach to lending. It empowers clients to unpack the credit value chain and digitize each step, including identity verification, credit decision making/analytics, disbursements of loans and collections. Indicina makes money by employing a Software as a service (SaaS) model, which provides Business to Businesses to consumer solutions to lending institutions whether bank or non-bank. This enables wider distribution by allowing for a more cost-effective adoption of their technology. Businesses of all sizes use their solutions for credit models, risk assessments, decision making, loan origination, loan portfolio management, decision making, and so much more. Their credit infrastructure comes equipped with the features businesses need to offer credit to their customers.
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Indicina has the following features:
- Credit modelling: It allows lenders to build credit models based on their preferred data points i.e information they prefer to know about their clients.
- Loan Origination: They make the credit application process very easy for the lenders’ customers.
- Auto decisioning: They set rules to arrive at a decision easily. With this feature, it will be easy for lenders to know whether they will accept or refuse credit requests.
- Disbursement: Indicina automates the distribution of approved loans. When lenders have approved credit requests, indicina disburses the money automatically.
- Collection: They automate the collection of loans as well as the repayment process.
- Loan portfolio management: with indicina, the entire loan performance of a business can be managed as well as how it affects the business.
It is worthy to note that indicina is not a lender, rather they build APIs that lenders use to make the credit application process easy for both lenders and their clients.
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