Lendsqr, a Nigerian lending software startup, is pioneering an artificial intelligence model that could redefine credit access for millions. By analyzing borrowers’ voices and facial expressions, the AI aims to determine creditworthiness—offering a lifeline to Nigerians who lack formal financial documentation.
Currently 76% accurate, the model is designed to support small loans between ₦30,000 ($18) and ₦50,000 ($31), bridging a critical gap for underserved Nigerians.
Rethinking the Lending Playbook
Traditional lenders typically assess borrowers using the “five Cs”—character, capacity, capital, collateral, and conditions. But for many in Nigeria’s mass market, producing documents to prove these traits is nearly impossible. That’s where Lendsqr’s AI comes in.
“Can we help vulnerable people demonstrate their capacity and character—not with documents, but with their words?” asks Adedeji Olowe, Lendsqr’s CEO. “That’s the idea behind this AI project.”
How It Works
Instead of filling out paperwork, borrowers interact with the AI by answering questions about their job, financial habits, and repayment plans using voice or video. The AI then analyzes their responses—listening to tone, gauging expressions—and predicts the likelihood of repayment.
The model is still in its testing phase, currently being funded by Lendsqr itself. The company plans to release its research results by Q3 2025 and will make the data open to competitors to foster industry-wide improvement.
Lendsqr is also looking to pilot the technology in Canada, targeting immigrants and students who often struggle to obtain credit due to a lack of local financial history.
But Africa remains the main focus. “In countries like Kenya, Ghana, Ivory Coast, Malawi, and South Africa, underbanked and vulnerable people face the same issues,” Olowe said.
Unlocking Economic Potential
If successful, Lendsqr’s AI could be a game changer. Currently, only 6% of Nigerian adults have access to formal credit, and fewer than 12% of the country’s 41 million small businesses can obtain loans—despite banks reporting record-breaking deposits.
Fintechs have tried to fill this credit gap with more flexible lending models, but they often rely on costly in-house verification systems, which drive up borrowing costs. Lendsqr’s innovation promises to reduce these costs, making credit more affordable and accessible.
For clients like Kredi, Snapcash, and Blockacash, the new AI tool could lower risk, expand customer bases, and significantly improve lending outcomes.
“Imagine offering loans to 10,000 people and having 9,000 repay because your screening process is more accurate—that’s a win for lenders and borrowers alike,” Olowe noted.
What’s Next?
Partially backed by the Nigerian government and supported by Google, the AI model will officially launch once it achieves 90% accuracy. While it’s not intended to replace traditional lending for bigger purchases like cars or homes, it could unlock foundational credit that empowers everyday Nigerians.
In a country where small loans can make the difference between stagnation and survival, Lendsqr’s technology might just be the key to financial inclusion for millions.
