By Ernest Bako WUBONTO
The Chief Business Officer of Letshego, Sam Donkor, has emphasised that harnessing technology and collaboration can revolutionise how individuals and businesses access credit, providing unprecedented opportunities for financial inclusion and growth.
Speaking at the Money Summit 2024, he highlighted the transformative potential of merging technology and finance, particularly through partnerships with Fintechs, which has led to groundbreaking innovations in the credit industry.
With the introduction of advanced technologies like artificial intelligence, machine learning and blockchain, financial institutions now have sophisticated tools to streamline the credit application process and assess creditworthiness more accurately.
Mr. Donkor cited the partnership between MTN Ghana and Letshego as an example, revealing that leveraging technology to create products such as Quick Loan has served over six million Ghanaians with a portfolio exceeding GH₵1.2billion.
“Technology has revolutionised credit scoring, moving beyond conventional metrics to assess creditworthiness. Utilising non-traditional data like transaction history, individuals lacking collateral or extensive credit history can now showcase their creditworthiness. By leveraging abundant digital data, lenders can provide tailored credit solutions, optimising efficiency, mitigating risks and minimising defaults.”
Mr. Donkor made these remarks during a panel discussion on ‘Digitalizing Money: Rethinking Financial Electronic Transactions for Economic Growth’. He emphasised the transformative role of technology in credit scoring, highlighting the shift toward non-traditional data sources and personalised credit solutions. His remarks underscored the importance of efficiency, risk reduction and economic growth in this digital age.
He noted that technology should be viewed as an asset for granting access to products and markets. Letshego, he said, sees technology as an asset leveraged to serve approximately 16 million customers of MTN. “With technology, your demographic profile and credit reference are not a challenge; just dial a short code and access is granted,” he added; unlike a traditional bank that requires clients to fill out about a three-page form to open a bank account.
Leveraging technology doesn’t necessarily entail creating something entirely new, but rather forming partnerships with telecommunication networks, Fintechs and other IT infrastructure service providers, which could lead to significant impact.
The potential to unlock economic opportunities for underserved populations, small businesses and emerging markets, empowering them to access the capital they need to grow and thrive, has been made possible by technology.
By removing barriers to credit access and promoting financial inclusion, technology is poised to drive economic progress and empower individuals and communities worldwide.
As the economy continues to embrace the digital transformation of the financial industry, the future holds immense promise for unlimited access to credit for all, fuelled by the innovative synergy of technology and finance.
