ChamsAccess, FirstAccess design digital loan for MSMEs

ChamsAccess Limited in collaboration with FirstAccess has designed a platform for digitisation of the entire lending process from Micro Finance Banks (MfBs) to Micro, Small and Medium Enterprises (MSMEs), in a move to end problems associated with loan disbursements.

The software solution is expected to fast-track MfBs credit to MSMEs from the process of on-boarding, through approvals to disbursement of the loans.

Speaking at the unveiling of the product in Lagos, the Chief Executive Officer, ChamsAccess Limited, Dumebi Obodo, said due to the flexibility of the platform, it can replicate existing processes and accommodate a wide range of needs around origination, approval, monitoring and collection with zero cost in terms of setup.

According to him, the highly affordable software-as-a-service application is designed for extreme flexibility of data sources – it enables MfBs to incorporate nearly any source of customer data via API or to collect it manually offline, which is especially relevant in the Nigerian market.

He pointed out that the MfBs in Nigeria is faced with harsh operating environment, noting that identification management has continued to hamper access to credit in the sector.

“The platform ensures that you can subscribe and connect technologically to disbursement platform of your choice. It is extremely flexible, practical zero cost in terms of setup and payment of subscription fee. The most important thins is for MfBs to digitize loan credit, help the MfBs on loans disbursement and assist in loan approval,” he said.

He explained further that the platform currently in four African countries, stands to create solutions that other platform providers do not have.

“The platform is built for micro financing. The Deposit Money Banks (DMBs), by policies, are not supposed to be giving out micro finance loans. This product is strictly for those who are disbursing micro finance loans. It does not mean DMBs cannot leverage on other platforms, but they also have their process of approving loans.

“The sector is challenging just like other sectors in the economy. , Identity management is a major issue that we have not surmounted that led to access to credit being hampered because you must know the people that you are disbursing money to,” he said.

The Chief Executive Officer of FirstAccess, Nicole Van Der Tuin, while speaking on “Digitisation and Automation: Helping MfBs Deliver Faster Credit MSMEs in Nigeria”, said with the new digital process, the sector will benefit more from growth and speed.

She said: “Most MfBs are doing a tough manual jobs and we can help them speed up, reach more customers fast and reduce their cost of lending which can bring growth and reach a lot more customers who never had access to credit.”

She added that the platform was developed for emerging economy, which us user friendly, easily customized with existing requirement of financial institutions that ensure that it works for MfBs and help evolves on a faster pace.