Banks Urged to Use Alternative Data for Credit Access

Winston Osuchukwu, the CEO of Mathesis Analytics, called on Nigerian financial institutions to reconsider traditional credit assessment models. He argued that many Nigerians are classified as high-risk borrowers due to incomplete financial information rather than their actual repayment behavior.

Osuchukwu emphasized that the lending ecosystem in Nigeria could significantly expand by incorporating alternative data and artificial intelligence (AI) in credit risk assessments. He pointed out that the average Nigerian borrower is often unfairly labeled as high risk, which influences retail loan pricing and approval processes.

He noted that many individuals, such as market traders and gig economy workers, have stable financial behaviors that remain invisible to traditional underwriting systems. Osuchukwu advocated for the use of AI to analyze alternative financial data, which would provide lenders with a more comprehensive understanding of borrowers' repayment capacities.

He stated that Nigerian banks have sufficient liquidity to support greater lending capabilities and should adopt AI-driven credit decision solutions to enhance their risk assessments and expand access to finance for underserved individuals and businesses.