2024-01-22 01:01:37
In Africa, AI allows banks to better understand the profile of their customers; the data collected can notably facilitate access to credit, while making it possible to offer services better calibrated to the specific needs of unbanked borrowers.
It is difficult to assess whether a customer will repay their loan when it is not banked. If he only uses cash for his transactions for example. But for around ten years, payment services have integrated artificial intelligence tools allowing an alternative assessment of credit risk.
« Before 2010, loans for small and medium-sized businesses were granted by different banks following a fairly long traditional process. », recalls Riadh Naouar, manager at the International Finance Corporation. He was speaking during a debate at the African Finance Summit (AFIS), which was held in Lomé in November. “ Between 2010 and 2015, we saw the emergence of “digital lenders”. Telecommunications operators hold a huge database in their hands – and in partnership with banks, they have managed to facilitate access to borrowing for their customers. These digital processes have further accelerated during Covid », add-he.
Mobile data collection
Companies from the fintech have gradually positioned themselves on this market – they offer to collect and analyze data available on users’ phones. A solution favored by banks according to Nana Araba Abban, director of the Ecobank personal bank: “ These fintechs offer applications that the customer will download and give their approval so that all their activities and their lifestyle are analyzed. TAll this information is shared by banks who can adjust their offers and make better decisions when granting credit. »
A loan request can thus be made in a few clicks – faster, more risky too: in Kenya, the rise of digital loans has pushed some people to take on debt at high interest rates. “ Last year, Rwanda launched a framework to assess regulatory needs », underlines Anita Umuhire, patron of the Bank of Kigali. « Banks can test some of their solutions in a real environment, with real customers, but within a regulated framework. »
Confidentiality and protection of user data is another major issue for the legislator.
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