The Canadian-based fintech company, Periculum, says that it will launch its services to developing countries.
It says that many developing countries need domestic credit to engender economic growth.
Explaining further, the company would not only provide credit for businesses but also short-term credit.
Individuals can get things and choose to pay for them later.
The CEO and Founder Michael Collins say that the absence of a tech-enabled credit assessment has limited the quality and quantity of lending.
And these have led to more risk for borrowers and the harassment practised by the lenders.
Therefore, Periculum has come to create a solution using technology for countries like Nigeria; the credit assessment standard is inefficient.
Also READ: Learntor and Women in Agile (WiA) Partners To Upskill Women In Tech
Michael has explained in his launch statement what the company sets to achieve in Nigeria.
“Africa needs domestic credit to stimulate real economic growth. And this is not only bank-to-business credit; it can also be digital lending for short-term credit and “buy now, pay later” schemes.
“The absence of tech-enabled credit assessment infrastructure has limited the quality and quantity of lending and may be behind the risk premiums borrowers have to pay and the harassment practised by predatory lenders in countries like Nigeria. Periculum will change that.
“Periculum will change that. We are a top provider of data analytics and credit assessment services targeted explicitly to underserved markets.
“We help our customers to reduce their lengthy loan application processing times and loan default rates and offer loans to the underbanked and unbanked consumers as well as micro, small and medium-scale enterprises.
With reliable, tech-enabled, credit assessment services, financial institutions can increase lending to those that need credit.”
Asides, he adds that there is a need for domestic credit for the consistent growth of a country.
“The vitality of financial services such as banking, savings, debt and equity financing, investment management, and point-of-sale lending is largely dependent on the maturity of its domestic credit industry.
“Nigeria’s domestic credit market pales in comparison to similar countries of the same size.
For context, credit to the private sector in Nigeria is about 12% of GDP, lower than South Africa’s 129% and Malaysia’s 134%.
“High ratios of credit to the private sector in these countries have helped to ramp up real sector growth, create innovative innovation possibilities for technology-enabled businesses, accelerate financial development, ensure the efficient functioning of the economy and guarantee the prosperity of the private sector,”
About Periculum
Introduced into Techstars in 2021, the company is a Canadian startup founded by Michael Collins.
In 2021, it raised $620,000 to expand its team to improve its product and expand to more countries, including Nigeria.
The domestic credit has launched with a great start in Nigeria, and it is making other plans to move to more African countries.
It would use automated assessment tools to improve financial inclusion and close the credit gap.
Found this interesting? Share!
and then