CreditChek, a leading credit assessment infrastructure provider in Africa, has partnered with CredPal to deliver creditworthiness and identity verification services for CredPal’s new credit card business. This collaboration represents a significant step for CreditChek as it strengthens its mission to make credit across Africa more accessible, transparent, and reliable.
At the core of CreditChek’s platform is its ability to simplify and enhance credit assessments. From verifying income to analysing credit histories and detecting potential fraud, CreditChek provides financial institutions with the insights they need to make informed decisions. This not only benefits businesses but also directly impacts consumers by reducing the time and effort required to access credit, paving the way for more people to participate in the formal financial system.
“We are excited to partner with CreditChek, a game-changer in credit scoring and reporting in Africa. What we love about Creditchek is how their innovative approach aligns perfectly with our mission to provide access to credit seamlessly across developing economies,” said Olumide Badewole, CredPal’s Head of Risk.
“Our collaboration is well poised toward fixing some of the industry’s long-standing challenges. Essentially, this partnership is about building a future where credit is fair and accessible to everyone,” he added.
Since its launch in 2022, CreditChek has facilitated over 300,000 verifications and supported over $30 million in loan approvals. Its innovative tools are trusted by over 80 financial institutions, including Moni, AjoCard, Trade Lenda, Gamp and Vetsark. Through this partnership, CreditChek is extending its impact, equipping CredPal with robust verification and risk assessment capabilities to drive the adoption of credit cards in Nigeria and beyond.
With its recently launched product, Spectrum, built in partnership with one of the Credit Bureaus, CreditChek is tackling the fraud risks inherent in money-lending services. Spectrum enables financial institutions to join a shared network where they can exchange data to protect themselves from chronic debtors. The product blacklists such debtors within the network and ensures their information is automatically updated with credit bureaus.
Addressing low credit card penetration in Africa
This partnership is crucial given the relatively low credit card penetration in Nigeria and across the African continent. In Nigeria, as of 2024, only about 1.6% of the population owned a credit card, placing the country 117th globally in terms of credit card penetration. Similarly, sub-Saharan Africa exhibits some of the world’s lowest credit card penetration rates, with credit card usage around 3%. This limited adoption is attributed to factors such as low-income levels (not meeting the thresholds required by traditional credit card issuers), lack of credit history, and a strong preference for cash transactions.
CreditChek’s role in improving credit access
CreditChek is positioning itself at the forefront of transforming credit access across the continent. By leveraging advanced technology, CreditChek streamlines income, identity, and credit history verification for businesses, enabling them to make more informed and fair lending decisions. This approach is particularly crucial in regions where traditional credit assessment methods are inadequate or non-existent.
The partnership with Credpal marks a pivotal step in CreditChek’s mission to build a cross-border credit assessment infrastructure. This infrastructure aims to empower African immigrants and consumers to access financial services globally, addressing the challenges posed by fragmented credit histories across borders. By facilitating the transfer of credit information, CreditChek enables financial institutions worldwide to assess the creditworthiness of African consumers, thereby promoting financial inclusion and economic empowerment.
Expanding financial inclusion for Africans
CreditChek is charting a future where African consumers can access financial services seamlessly, no matter where they are in the world.
“Beyond this partnership, CreditChek is evolving into a cross-border credit assessment infrastructure,” says Kingsley Ibe, CEO of CreditChek. “For African immigrants and consumers globally, our goal is simple: wherever you go as an African, you should have access to essential financial services—whether it’s opening a bank account, obtaining credit cards, or securing affordable leases.”
This vision aligns with projections from Baobab Network, a recent investor in CreditChek, which estimates that 147 million Africans will emigrate by 2050.
CreditChek’s focus on cross-border credit assessment aims to bridge the gap for these individuals, ensuring their credit histories can move with them. This would allow African immigrants to access financial services in countries like the UK, Canada, and the US from the moment they arrive.
Through its innovative solutions and strategic partnerships, CreditChek is addressing the immediate needs of financial institutions like Credpal and laying the groundwork for a more inclusive financial ecosystem across Africa.
