CBN urged to warn against unlicensed digital loan companies
Following the recent crackdown on certain digital lending companies in Lagos State by the Federal Competition and Consumer Protection Commission (FCCPC), the Rating Manager of DataPro Limited, Mr. Oladele Adeoye, has urged the Central Bank of Nigeria (CBN) to place a cautionary tale on corporate operations in the country to restore common sense in the financial services sector.
He said the findings revealed that some of the digital lending companies were operating illegally and evading regulations aimed at controlling their activities. He said the impact of having unlicensed digital lending companies was that the interest rate was charged, the loan approval and collection procedure would not be regulated, adding that if there was a high level of regulatory vacuum, there would inevitably be a lot of abuse. .
Adeoye, who revealed it yesterday in Lagos at the launch of Tigran-for-Datapro, an artificial intelligence technology, revealed that for licensed digital lending companies, their activities have a positive impact on the economy by creating demand and purchasing capacity, which implies that those on the supply side are able to do their business, earn their money immediately and this contributes to the gross domestic product (GDP).
Speaking on the newly launched app, he said the app is ideal for depository banks (DMBs), merchant and investment banks, mortgage banks, microfinance banks, finance companies. insurance, capital market operators (CMOs), FinTechs, multinationals, conglomerates and manufacturing. companies, in order to digitize and automate their credit risk underwriting process with the integration of the various components of the user credit policy and data sources.
“The product will provide the market with a stand-alone solution on customized quantitative and qualitative analysis, forecast analysis, leverage capacity simulation, portfolio analysis, probability of default modeling and loss modeling. expected credit,” he said.
Reacting to the partnership, Modefinance chief executive Mattia Ciprian said the credit market increasingly needs rapid assessments with high accuracy.
He added that modefinance is committed to supporting organizations around the world on a daily basis, with a greater focus on the African continent.
Ciprian said he was delighted with the partnership, noting that DataPro is a rating agency with a strong technology core.
Continuing, Adeoye added, “We recognize that credit decision-making must be effective and efficient. This has become necessary today as customers eagerly expect fast, convenient and cost-effective services from vendors. Technology that can help financial institutions and corporations operating on credit make informed decisions is therefore becoming essential.
The partnership between modefinance and DataPro will bring African and European experiences in the development of the credit decision-making process in Nigeria.