Sofri, powered by Links Microfinance Bank, has embarked on a transformative journey to revolutionize credit access and empower businesses in Nigeria. Recognizing the significant hurdle posed by the nation’s inadequate data infrastructure, Sofri has strategically integrated cutting-edge technology, alternative data analytics, and AI-driven credit scoring to address the persistent challenge of limited credit access. This comprehensive approach aims to bridge the gap created by the scarcity of reliable and comprehensive financial data, which has traditionally hindered lenders’ ability to effectively assess risk and expand their lending operations. By leveraging these innovative tools, Sofri seeks to unlock opportunities for businesses and individuals who have historically been excluded from the formal financial system.
Central to Sofri’s transformation is the launch of a redesigned mobile app, offering users a streamlined experience with real-time alerts, expedited onboarding, and seamless loan applications. This enhanced mobile platform, coupled with the introduction of Corporate Internet Banking (CIB), caters to the diverse needs of both individual borrowers and larger businesses, specifically SMEs and institutional clients. The inclusion of a Terminal Management System further optimizes operational efficiency for merchants by improving POS terminal uptime and transaction processing. This multifaceted approach positions Sofri as a comprehensive financial solutions provider, catering to a broad spectrum of clients while driving financial inclusion.
Sofri’s innovative approach to credit scoring lies in its utilization of machine learning algorithms that incorporate a wider range of data points beyond traditional credit history. This expanded dataset includes unconventional metrics such as phone usage patterns, location data, education level, and even social media influence. By analyzing these alternative indicators, Sofri can build a more comprehensive understanding of borrower behavior and risk profiles. This inclusive approach enables Sofri to extend credit to individuals who might otherwise be overlooked by traditional lending institutions due to a lack of formal credit history, thus promoting financial inclusion and empowering a wider segment of the population.
The inclusion of non-traditional data sources reflects Sofri’s recognition that financial behavior is influenced by a multitude of factors beyond formal financial records. For instance, social media engagement can serve as a proxy for social capital and trustworthiness, adding another dimension to credit risk assessment. This data-driven approach not only expands access to credit but also fosters greater financial inclusion by acknowledging the diverse financial realities of individuals and businesses in Nigeria. This strategy positions Sofri as a pioneer in leveraging alternative data for credit scoring, paving the way for a more inclusive and accessible financial landscape.
In addition to its technological advancements, Sofri has embraced the Central Bank of Nigeria’s Global Standing Instruction (GSI) policy to enhance loan recovery rates and mitigate risk. The GSI empowers lenders to automatically recover outstanding debts from any account linked to a borrower’s Bank Verification Number (BVN), regardless of the bank where the account is held. This policy significantly strengthens lenders’ ability to manage risk and ensures greater financial stability. By combining the GSI with its data-driven approach, Sofri can lend with increased confidence, further democratizing access to finance. This proactive adoption of regulatory policies reinforces Sofri’s commitment to responsible lending and strengthens its position as a trusted financial institution.
Looking ahead, Sofri is poised to rebrand as SofriTrust MFB, solidifying its commitment to building a digital-first bank that effectively serves the real economy. The company’s overarching goal is to drive financial inclusion through innovation and intelligence, empowering businesses and individuals across Nigeria. The introduction of the new CIB platform further underscores Sofri’s commitment to providing businesses with efficient and secure financial tools. This robust platform, with its enhanced functionality and advanced security measures, caters to the diverse needs of business customers while safeguarding their sensitive financial data. This forward-looking strategy positions Sofri as a key player in driving economic growth and fostering financial stability within Nigeria’s dynamic business landscape.
