Financial services firm MOGO, has reaffirmed its commitment to responsible lending by implementing a range of customer-centric measures aimed at ensuring transparency, protecting customers from over indebtedness, and empowering customers to make informed
financial decisions.
The company said it believes in providing a clear and transparent process that enables customers to fully comprehend the terms of their loan contracts. This approach is designed to prevent customers from facing financial hardships in the future, ensuring that their financial
commitments are sustainable and in their best interests.
Mr Chris Murimi, MOGO’s Head of Underwriting, emphasized the company’s dedication to responsible lending, stating, “We have implemented several measures to assess our customers’ ability to repay loans effectively. Our credit analysts evaluate customers’ income statements for the past six months, and we utilize artificial intelligence technology to improve credit scoring models and ensure thorough evaluations are done before approving new loan applications.”
One key aspect of MOGO’s responsible lending strategy is to provide customers with clear and comprehensive information about the loans terms upfront. “Before customers enter into any agreement, we furnish them with all the loan details, including preliminary offers that outline the terms. This approach ensures that customers understand the installment payments, associated fees, and the long-term benefits of the loan,” said Mr Murimi.
MOGO goes beyond traditional lending practices by offering flexible repayment terms – providing customers with the option of longer repayment periods, and advising them to choose plans that align with their income.
MOGO also launched a free to use financial literacy tool in February 2023, enabling customers to assess their financial creditworthiness independently. Customers can access the tool through MOGO’s website.
In cases where unforeseen hardships arise during loan repayment, MOGO offers support through tools such as loan temporary payment adjustments. This approach helps customers facing income reductions due to job loss, rising cost of living and inflation, or business
challenges by extending their loan terms and reducing their monthly obligations.
To further enhance responsible lending practices, MOGO engages customers through outreach events to sensitize them about financial literacy, and stays updated with industry regulations and best practices to ensure compliance. The company’s vision for responsible lending is to focus on assisting customers in making sound borrowing decisions to protect them from financial commitments they cannot afford to meet.
“To achieve our mission of facilitating upward social mobility across Kenyan communities, MOGO remains dedicated to fostering a transparent, customer-focused lending environment, prioritizing the financial well-being of its customers,” added Mr Murimi.