Maureen is a business owner who sells 2nd hand shoes. This month, her cashflow dipped making it difficult for her to purchase new stock. To make ends meet, she downloaded a digital lending app and in 10 minutes, she had access to funds which she would repay once she made enough money. She says that this is a better avenue than trying to access a loan from a bank because it takes a lot of time to get approved.
This is just one person but since digital lending started out in Africa some 10 years ago, it has continued to grow, offering Maureen and a lot of people easy access to money. Because of how quickly you can access the funds with digital lending, there are little to no checks done except maybe for willingness to repay which allows a lot of room for fraudsters. In some countries, these solutions are integrated with Credit Reference Bureaus (CRB) to verify the payment history of a (lender) with non-paying customers being locked out.
Through digitized efforts of KYC, most companies now are able to onboard real people once per platform and even integrate to CRB to onboard paying customers.
A company that has taken this approach is Palmcredit. PalmCredit is a virtual credit card that makes it easy for you to access a loan anytime and anywhere. Palmcredit offers loans of up to ₦100,000 within minutes on your mobile phone.
Cyber-attacks are 300 times more likely to occur in the banking and lending industry than in any other industry. Palmcredit wanted to provide a platform that is secure for its users as they access quick and reliable funds without increasing their wait time. They were looking to make their KYC process better by providing more accurate information for their onboarding to ensure that the customers are real live customers.
Our SmartSelfie™ authentication product was the perfect solution. By capturing a user’s selfie they are able to authenticate their users and prevent one person from opening more than one account.
“Smile Identity is an innovative and technology driven company. Their services are up to standard and flexible. Integration with Smile Identity is smooth and reliable, we are excited to see what else Smile ID can bring for us to improve our product”- Olayode Opeyemi, MD/CEO, Palmcredit
There was an improvement of loan approvals after implementation of face verification (SmartSelfie™) by Smile Identity.
“Smile Identity provided Palmcredit with better KYC that improved our onboarding KYC accuracy with more reliable customers and reduced fraudulent applications.” — Olayode Opeyemi, MD/CEO, Palmcredit