Firm eyes mobile tech to expand loan access

Fintech companies are turning to mobile technology to improve access to loans in Nigeria, leveraging digital platforms and alternative credit scoring to reach underserved populations, Makua Eyisi, Chief Executive Officer of Monibac, has said.

Eyisi said mobile technology, combined with partnerships and financial literacy programmes, can help bridge the credit gap for small businesses and individuals without formal financial histories.

“Mobile apps and USSD codes are making it easier for people, especially in rural areas, to apply for loans, check balances, and make repayments without visiting physical branches,” Eyisi told The PUNCH.

Fintech platforms are increasingly using alternative data points such as mobile money transactions, airtime purchases, and utility bill payments to assess creditworthiness, making loans accessible to people who lack traditional financial records, Eyisi said.

“This approach allows lenders to create credit scores for previously excluded businesses, offering smaller, short-term loans that are more accessible and better suited to their cash flow,” he said.

However, Eyisi noted that low financial literacy and lack of trust in formal financial institutions remain significant barriers to adoption, particularly in rural areas.

“Partnering with trusted community leaders and deploying agent banking models can help build trust, while regular financial education sessions in local languages will empower people to engage with digital financial products,” he said.

Nigeria’s fintech sector has seen significant growth in recent years, driven by the Central Bank of Nigeria’s financial inclusion policies, but gaps in infrastructure and regulatory harmonisation continue to limit its reach.

Eyisi said collaboration between fintech companies, telecom operators, and NGOs will be essential to scale financial services and extend credit access to underserved communities across Nigeria.