Sterling Bank reduces consumer loans processing time to 5 minutes

STERLING Bank Plc has introduced a consumer loan scheme called ‘Specta’, which disbursement is done in less than 5 Minutes.

This is just as the lender said it has set aside N10 billion for retail lending under the Specta platform.

Specta is an online lending platform that offers loans not more than N5 million to individuals, with a goal to create a simple, convenient, and personalised experience for customers.

Speaking at the inauguration of the product in Lagos, Shina Atilola, the Head of Strategy and Innovation in the bank, said the N10 billion loan facilities would be for customers and non-customers of the bank.

With Specta, customers do not need collaterals or paperwork to get any loans as long as their companies are enrolled in the platform through the human resources department. Once application is complete, scoring is instant and disbursement done in less than five minutes.

According to Atilola, Specta will ensure that customers have access to personal loans without going through the stress associated with obtaining regular loans from banks.

Explaining the process of application, Benedicta Sadoh, the Head of Value Chain Banking Department in the bank, said through Specta, the bank was targeting 100,000 customers before December this year, while 700 corporate customers had already keyed into the platform.

“We use proprietary data and analytics to review applications and provide approved applicants with personal loans, household/asset acquisition loans and salary advance,” she explained.

Sadoh said the platform, which would only cater for salaried workers of any level, would take five minutes to access after profiling of customers, adding that the bank would also confirm and negotiate the interest rate with the human resources manager of the company where the prospective customer worked.

She said the loan repayment would be at 33.3 per cent of the net monthly salary of the beneficiary spread over 48 months.

According to her, the maximum amount that can be borrowed by a customer is N5 million per transaction.

Sadoh said the outstanding principal would be covered by insurance in case of job loss or death.

In the same vein, Grama Narasimban, Executive Director, Retail and Customer banking said Sterling bank is rapidly adopting digital platforms because the next five to 10 years will witness a total transformation of banking from traditional to digital banking.

“We are going to introduce more of such digital platforms for sterling customers,” Narasimba revealed.

Consumer credit enables borrowers to maintain and potentially enjoy a more comfortable lifestyle.

For example, if one is in need of a big screen TV, a washing machine or an air conditioner in the household but do not have all the money to purchase everything at once, consumer credit enables the person to purchase and use all of these items now while he or she pay back the loan over a period of time, such as 6, 12 or even 24 months.