Nigeria FinTech Landscape - Impact Assessment slide image

Nigeria FinTech Landscape - Impact Assessment

3: The central credit scoring infrastructure will leverage transaction and customer data to develop credit reports for customers EXAMPLES What's the need today? Today, banks and financial institutions rely on multiple sources to evaluate the creditworthiness of customers and businesses, which is a costly process 血血血 Credit bureaus which currently has > limited scale Private and ΙΠΠ public employers for employment and income verification Set up NIBSS as the "one- stop shop" for credit checking and fraud detection NIBSS Transaction details, frequency, financials history from central switch Credit bureau + Aggregated customer data from different banks - address, financial history, loan amount Banks + Account balance, address information, payment amount and history How the central credit scoring could work 1 NIBSS uses customer data from transaction volumes to build credit score for customers Can be done in Phase 2 NIBSS transaction data Credit bureaus Alternative data sources Utilize innovative software to generate credit scores from customers using customer data from NIBSS central switch 1 1 Central credit infrastructure 2 Customer consent (partner institution side) Customer applies for a loan with financial institution / banks I agree to share my information with third party service providers, to secure additional information that will be useful for evaluating my creditworthiness 3 NIBSS shares customer's credit rating with partner institution Information on the customer run through database and credit report sent to partner (fee is charged for every pull) Credit scoring system 3 2 Customers 2 Lending institutions SOURCE: Expert interviews, Stakeholder interviews, team analysis EFINA 86
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