About
Enhancing the culture of borrowing
Innovation presentation
Social media engagement in Nigeria is proliferating at a fast rate. Social media and ‘word of mouth’ marketing will drive the next revolution in the banking industry. This is as a result of changing demography and lifestyle of the Nigerian consumer. Internet user subscription continues to grow within the Nigerian space and is currently estimated at about 88 million (NCC Website, 2015). Mobile phone penetration continues to rise with circa 80% penetration in 2014. According to NCC, internet penetration is driven by mobile phones.
In this vein, the Bank designed in conjunction with an external vendor - an application that uses social media popularity as collateral for debt. Social media users are able to borrow small amounts that enable them bridge funding gaps.
Following the launch, about 3,265 number of users have accessed over N1,334,500.00 There is also a N100 flat fee charged on every loan granted.
Uniqueness of the project
The model disrupts banking requirements for loans- mixing traditional collateral with social cohesion used in group lending models around the world. By using the popularity on social media platforms, the bank is able to reach many more people than it normally would.
