Mathesis CEO Advocates for Data-Driven Loan Pricing

Winston Osuchukwu, the Founder and Chief Executive Officer of Mathesis Analytics Inc., has called for Nigerian financial institutions to abandon blanket interest rates in favor of data-driven pricing models that accurately reflect the risk profiles of individual borrowers. In an opinion article titled “Pricing Risk in the Dark: The End of Blanket Interest Rates in Retail Lending,” Osuchukwu critiques the traditional lending system, which categorizes borrowers broadly, leading to similar interest rates for different risk profiles.

He illustrated this with an example of two small businesses applying for a ₦5 million term loan, highlighting that despite similar revenues, their financial behaviors could differ significantly. Osuchukwu stated that conventional credit scorecards often approve loans based on average risk, resulting in lower-risk borrowers overpaying and viable businesses being denied loans.

He emphasized the importance of improved risk visibility, leveraging extensive behavioral data from various financial activities in Nigeria to create a fairer lending environment.