Rating agency seeks caveat on unlicensed digital loan firms
A Credit Rating Agency (CRA), DataPro has called on the Central Bank of Nigeria (CBN) to place a caveat on all unlicensed digital lenders over abuse of space in the financial services sector (FSS).
Chief Rating Officer, DataPro Limited, Oladele Adeoye, stated this during the launch of Tigran-for-Datapro, a credit rating solution, with a promise to unleash the power of credit into the domestic economy.
He said some of the unlicensed digital loan firms, most of the time, sidetrack government regulations aimed at checkmating their activities. He said the move created a high level of abuse in FSS.
According to him, the procedure of loan approval and recovery is not regulated. “If there is a high level of regulatory gap, then there is bound to be a lot of abuses,” he said.
Managing Director of DataPro, Abimbola Adeseyoju, said Artificial Intelligence (AI) tools would boost access to credit in Nigeria.
Adeseyoju, who disclosed that the launch of Tigran was in partnership with Modefinance International, a subsidiary of Modefinance Group, said the tool would revolutionise rating in Africa.
According to him, it will bring transparency and trust to automation and will deliver debt capacity simulation, probability of default modelling and expected credit loss modelling.
He added that the application was ideal for Deposit Money Banks (DMBs), mortgage banks, microfinance banks, insurance companies, Capital Market Operators (CMOs), FinTechs, and manufacturing companies to digitalise and automate their credit risk underwriting process with the integration of different components of user credit policy and data sources.
n his remarks, Chief Executive Officer, Modefinance, Cristian Giacomini, said the credit market needed more and more fast evaluations with high accuracy.
He said the cross-continental partnership would encourage financial institutions and investors to further develop credit risk analysis, increase financing, and contribute to the sustainable growth of the national economy.
“We are fully committed to transferring our know-how, generating added value for the Nigerian economy, and creating a domestic legacy in the credit risk management industry,” he said.