The Managing Director of Sofri, Mr. Paul Adebayo, has emphasized the urgent need for a more robust and efficient data ecosystem to improve credit score metrics and expand access to credit in Nigeria. Speaking at Sofri’s relaunch media parley in Lagos, Adebayo noted that current data limitations in the credit industry hinder financial institutions’ ability to assess risk and design inclusive lending solutions.
He called on the government to address data gaps by eliminating bottlenecks that restrict access to reliable credit data. Adebayo highlighted that without a strong data infrastructure, Nigeria’s credit system will continue to fall short of its potential, especially in delivering scalable and inclusive financial products.
The fintech executive praised recent efforts by the Central Bank of Nigeria (CBN), especially the implementation of the Global Standing Instruction (GSI) framework. GSI allows lenders to recover loans from any account associated with a borrower’s Bank Verification Number (BVN), even if the borrower switches banks. This, he said, significantly reduces loan default risk and enhances lender confidence.
In a move to modernize lending, Adebayo revealed that Sofri is integrating artificial intelligence (AI) and machine learning to refine its credit assessment models. This is particularly beneficial for nano and payroll lending, where borrowers often lack traditional credit histories. The AI models evaluate diverse data such as mobile phone usage, location, and lifestyle to assign credit scores.
Additionally, Sofri is exploring the use of social media engagement as a component of creditworthiness. Adebayo explained that higher online visibility, like having many social media followers, could indicate stronger social capital and lower risk of default. This innovative approach aims to bring previously unbanked or underbanked Nigerians into the credit ecosystem using alternative, data-driven strategies.
Source: Leadership