Nigeria FinTech Landscape - Impact Assessment
3: To build lender confidence, NIBSS could develop a collection infrastructure that
incorporates digital direct debit mandates and the GSI
◉
Operationalize credit collection infrastructure in Nigeria
☐ How the collection
infrastructure could work
Customer request for credit facility through
FinTech or financial institution
Upon loan approval, customer sets up
direct debit through central loan collection
infrastructure (NIBSS) for loan repayment
Customer provides consent to NIBSS to
collect default payment from other bank
accounts linked to his/her BVN through
GSI system
NIBSS collects loan repayments from
customer's primary account
In the event of loan defaults, lenders
recover delinquent loans from other bank
accounts through GSI
1.
Global Standing Instruction
ㅁㅁㅁㅁ
NIBSS
Customers
1
3
central
Loan request
and approval
Signed consent
collection
to bank and
NIBSS
2
Set
up direct
debit payment
Lending
institutions
Collection
from other
5 banks
4
6
Loan
repayment
Other
NIBSS
banks
pays
delinquent
loan
Benefit to overall
credit infrastructure
Create visibility in
consumer lending across
Nigeria
Increase appetite for
consumer lending from
financial institutions
Reduce risk of loan
defaults with increased
visibility
SOURCE: Expert interviews, Stakeholder interviews, team analysis
EFINA
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