Lendsqr launches voice, video AI for loan assessments

Lendsqr, a startup that provides all the software companies need to start a lending business, has developed an AI-centred voice and video analysis model aimed at improving loan assessments for underserved populations in Nigeria. This is particularly for those in the informal sector, who lack traditional financial documentation.

In Nigeria, a significant portion of the adult population operates outside formal financial systems, making it challenging for lenders to assess creditworthiness using conventional methods. According to Enhancing Financial Innovation & Access (EFInA), only 6% of Nigerian adults used credit products from regulated financial institutions in 2023. This highlights the need for innovative approaches to credit assessment.

Lendsqr’s new model leverages advanced AI capabilities from Google Cloud to evaluate borrowers based on speech patterns, responses, and other proprietary signals during loan applications. The project, partially funded by the Nigerian Ministry of Communications, Innovation and  Digital Economy and Google, aims to provide lenders with additional insights when traditional data points are missing.

Early results from the project’s first phase indicate a predictive accuracy of up to 76%. Lendsqr CEO Adedeji Olowe emphasised that the technology is not about building a lie detector but about using subtle conversational cues to assess a borrower’s credibility.

This initiative aligns with broader efforts to enhance financial inclusion in Nigeria. The Nigerian Data Protection Regulation (NDPR) provides a legal framework for data privacy, ensuring that innovations like Lendsqr’s AI model operate within established guidelines.

By integrating this AI-powered analysis into its lending platform, Lendsqr aims to unlock meaningful, responsible credit access for over 100 million Nigerian adults who have been invisible to the financial system. This approach has the potential to enhance credit assessment in emerging markets, providing a model that could be replicated across Africa.