Nigerian fintech startup Creditchek is helping lenders mitigate credit risks by reliably verifying the creditworthiness of potential consumers in Africa. “It is not uncommon to find African consumers taking loans from multiple lenders simultaneously, eventually leading to over-indebtedness, and the lack of symmetrical information sharing in the lending ecosystem to identify repeat offenders leads to loan stacking,” said Kingsley Ibe, the startup’s co-founder and business lead. Creditchek looks to address this issue, allowing lenders to more easily verify the creditworthiness of borrowers, which mitigates risk for them and in theory allows more deserving people to access loans. The African credit market in certainly a major one, with McKinsey & Co valuing it at US$1.7 trillion, growing 6.2 per cent year-on-year. Creditcheck had to overcome initial challenges to reach this point, but is now fundraising for its next stage of growth.

Source: The North Africa Journal June 12, 2023 06:02 UTC