News Column

Sterling Bank Unveils Online Platform for Lending

June 12, 2014

Sterling Bank Plc has gone into collaboration with BINCOM ICT to introduce a 'Social Lender Scheme' for its customers on social media.

Speaking at the launch of the product in Lagos yesterday, the Head, Social Media, Sterling Bank Plc, Mr. Kelvin Steve-Igbodo described the platform as a modified peer-to-peer lending solution that uses social media to offer micro-credit.

He said the scheme would provide a platform for online fans as well as followers that are customers of Sterling Bank to obtain micro-credit loan via social media channels starting with facebook and twitter.

Steve-Igbodo added: "This application will integrate with existing financial structures of the bank such that users of the online platform can access small loans by normal methods of withdrawing cash without collateral.mThese funds are easy to access and are delivered via a convenient platform."

Explaining how the customers and followers of the bank can benefit from the service, he said facebook or twitter fans can apply for micro-credit by visiting the website.

According to him, users who request for the loans on the social lender platform are rated by the algorithm that calculates their social reputation using various criteria.

Based on this, the loan is either granted or rejected by the back-end social credit officer. Most importantly, the applicant must have an account with the bank.

Steve-Igbodo added: "At Sterling Bank we realise that one of the basic functions of a bank is to provide loan access for its customers, but we have also observed that the inconvenience of the processes often dissuades potential customers from applying for loans.

"With the emergence of social banking on our various online platforms, the need to issue loans online has become relevant and this is why Sterling Bank has taken the initiative to develop a service that would make it easy for those who are active online to access micro credit."

To the Deputy Group Head (Programmes), BINCOM, Mr. Bade Adesemowo, both institutions are working towards putting in place a process to be able to manage loan default as part of the system.

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Source: AllAfrica

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