Sterling Bank Plc yesterday launched a ‘Social Lender’ scheme that would enable it grant loans to its customers on Facebook.
Speaking at the product launch, the bank’s Head, Social Media, Kelvin Steve-Igbodo said approval of the loan happens within 10 minutes, and that borrowers can make the request online and get their accounts credited with the fund.
He said the bank is starting with N3,000 and will gradually raise the amount with time. He said the scheme is targeted at customers with urgent cash need.
Steve-Igbodo said the bank is collaborating with BINCOM ICT to ensure that the product succeeds in the market. “Social Lender; the first in Nigeria is a modified peer to peer lending solution using the Social Media Platforms through which micro-credit will be offered to members of these communities. The scheme provides a platform for online fans, followers who are customers of Sterling Bank to obtain Micro-credit loan via social media channels starting with Facebook and Twitter,” he said.
He said the application will integrate with existing financial structures of the bank such that users of the online platform can access small loans by normal methods of withdrawing cash without collateral. These funds are easy to access and are delivered via a convenient platform.
How it works
Explaining how it works, he said: “Our friends on Facebook or Twitter can apply for Micro-credit by visiting the Social Lender site. Users who request for the loans on the Social Lender platform are rated by the algorithm that calculates their social reputation using various criteria. Based on this, the loan is either granted or rejected by the back-end Social Credit Officer. Most importantly, the applicant must have an account with the bank”.
He said the bank understands that one of the basic functions of a bank is to provide loan access for its customers, but we have also observed that the inconvenience of the processes often dissuades potential customers from applying for loans