By ChrisOnuoha
Asideits numerous products that arevoid of the usualfinancial bureaucracyand also offer easyaccesscapital to SMEs and individuals, KiaKia, a licensed online peerto peer and direct lendingplatform, has introduced‘Mr. K’, an artificialintelligence (AI) and machine learning powered alternative credit scoring, customer service, Direct andP2P lending virtual agent.
The platform, according to KiaKia, is one of themost robustfinancial services virtual assistantaround andis ushering in a new era ofalternative credit scoringandrisk assessment, customerservice, direct and peer to peerlending,poweredbydata analytics, machine learning andartificial intelligence, all ona single platform and througha very friendlyinterface and end to enduser experience.
Expressing his excitement overthe new product, Olajide Abiola, Managing Director, KiaKia, noted, “Through Mr. K, we are hoping to furtherdrivedown the interest rate for unsecured loans.
KiaKia has alwaysoffered themost competitive interest rates for unsecured loans frombetween 8percent to 24 percent for 30days, dependingonthe borrower’s KiaKia proprietarycredit rating, while our competitorshavea goingrate of 30percent flatfor 30days”.
Speakingfurtheronthenew product, Abiola said 80percent ofKiaKia high scoring borrowers access the sameloansat between 7.5 percent and 15percent as againstthe 30percent of its competitors, as well as, connecting credible borrowers withlendersofferingloansas low as 5.5 percent interest ratefor longertenured loans.
As well, Mr. K offers borrowersduration flexibilityin that borrower could choose the exactnumber ofdaysbetween 7 and60 daysfor short-term loansandare charged interest onlyfor such number ofdays, unlike otherswho charge flat rates.
Through ourpeer-to-peer, we have been able to connect credible borrowers with lenders offering loans aslowas 5.5percent interest ratefor longer tenuredloans, the managingdirectorexplained.
“We are delighted that ayearofpatient, meticulous and diligentresearch and development has culminated in the birth of anefficient model of alternative credit scoring and lending,drivenessentially by behavioural biometrics, data analytics, machine learningand ArtificialIntelligence”.
Mr. K is targetedat millionsofcredible individualsand SMEs that arefinancially underservedin spite ofthe hugeamount of privateandcorporate monies inthe financial systemsacross Africawith theaim of offering themeasyaccessto credit.
Explainingtheplatform, Abiola said that millionsofworkingbanked adults whose accountscouldnotaccessmeaningfulcredit andmillionsofSMEs who couldnotaccess short term cash advancesfrom their respective banks cannow have accessto loans without stressand formalities ofthe regular financial institutions.
He noted that KiaKia is nota bank, does not provide savingsand deposit services from thepublic, and is alsonot afundmanager.
For him,KiaKia utilisespsychometric, big- data, machine learning anddigital forensics for its proprietarycreditscoringand credit risk assessment algorithm to provide direct andpeered personal and businessloansto millionsofindividualsand SMEs without creditinformation.
Abiola is confidentthat thenew productwill be well-received bythe Nigeria publicand SMEs because, “As oftoday, tens and tens of millions of Nairain loanshavebeen successfully granted to and repaidby hundreds and hundredsofborrowersacross 22States ofNigeria, with a Loss/Default/ NPLratio ofbelow2.3 percent, consistently maintained over a12-month period”.
The modest result, according to him, signaled and proven the feasibilityof homegrownsolutions KiaKia is bringing to thetableand wasachieved through the KiaKia algorithm, which could identifyand determine borrower character and creditworthiness.
“As Mr. K ushers in a new vistaof boundless opportunities offinancial inclusiveness for millionsofAfrica’s financiallyunderserved,wearepromising our existingandprospectiveusersanew era ofresponsible accessto capital.
Access to capital that is geared at liberating them financially, helpingsmall businesses differentiate and grow, rather thansinkingthemunder thecrushing weight ofdebt”, he concluded.
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