Secures “BB” Rating from Global Credit Rating Co.
OneFi the parent firm that runs Paylater, a digital lending platform that specialises in consumer lending has been received ”BB” rating from Global Credit Rating Co. for its key financial and operational factors including risk management, liquidity positioning, borrowings and capital under management.
In arriving at this rating of “BB” with a Stable outlook, Global Credit Rating Co’s analysis found that OneFi is well capitalised vis-a-vis its current risk level, and also highlighted the fact that the company currently has a low liquidity risk.
Chijioke Dozie, OneFi CEO says in a statement, “The work does not stop here. We are a young company, and the very first African fintech platform to be awarded with a credit score, and whilst we are pleased with our “BB” rating and Stable Outlook, which we believe fairly reflects our current standing, we are now focussed on expanding our product offering, improving our asset quality, driving up customer loan applications and looking at ways in which we can bring our innovative approach to finance management to additional markets”.
Paylater, launched in 2016 by Nigerian finance entrepreneurs Chijioke and Ngozi Dozie, provides hassle-free loans without need for human intervention or bias in decision making.
Loans are disbursed to applicants account within 5 minutes of approval. The credit-as-a-service company aims to be a one-stop-shop where all the financial needs of the Nigerian consumer can be met through one platform.
To-date, the Paylater app has been downloaded over 1 million times with over 1,575 loans approved daily. The average disbursement time is 12 seconds and the average loan borrowed is $80 with a 3 month loan tenor. As part of its ongoing commitment to transparency, the lending platform has, since September, provided each Paylater loan applicant with a free credit bureau report, irrespective of decision, with 100% reporting of positive and negative data. To date, the company has shared over 60,000 reports with customers.
Chijioke Dozie adds that ratings come at the right time when the Central Bank of Nigeria is revising the Licensing Regime for finance providers and fintech platforms in Nigeria, and with more formality and regulation surrounding the sector.
