Banking Briefs
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STERLING Bank Plc has recorded an increase in the minimum amount of its online ‘quick cash’ from N3,000 to N10,000. According to the bank, this followed the success of its social lender scheme introduced last year as well the impressive response from the beneficiaries who are mainly members of the on-line community.
The bank said, in a statement, that it also targets 6000 beneficiaries for the current year. Last year, the bank said it disbursed more than N5 million to more than 2000 online customers within six months of its introduction. More than 90 percent of the amount advanced has been paid back by the beneficiaries, it stated.
Social lender, according to the bank, is a modified peer-to- peer lending solution using the social media platforms through which micro-credit is offered to members of these communities. The scheme provides a platform for online followers who are customers of Sterling Bank to obtain these monies via social media channels such as Facebook and Twitter.
Shina Atilola, group head, strategy and communications of the bank, said the scheme was repackaged because of its success, the quality of feedback from members of the on-line community and the impressive pay back rate of the beneficiaries. He explained that the bank had taken the decision to increase the minimum amount for lending because “our target market has been faithful to the terms of the agreements reached during the launch phase, they have been faithful with repayment and this has inspired confidence.”
The scheme, according to Atilola, had been integrated with existing financial structures of the bank such that users of the online platform now access quick cash by normal methods of withdrawing cash. These funds, according to him, are easy to access and delivered via convenient platforms. “Our friends on Facebook or Twitter can apply for quick cash 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 request is either granted or rejected.”
He said with the introduction of the scheme, the bank was making it easier for potential and existing customers to bridge short term financing needs.
— Mar 14, 2016 @ 01:00 GMT
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