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Vbank partners Autochek to reduce vehicle-financing barriers, risks

Vbank partners Autochek to reduce vehicle-financing barriers, risks

Vbank, a digital bank powered by VFD Microfinance Bank, and Autochek, the automotive technology company making car ownership more accessible and affordable across Africa, have partnered to launch a loan origination that makes it easier and quicker for customers to access loans to purchase their desired vehicles.

According to Vbank, this partnership will solve the risks that come with buying a vehicle ranging from either buying a brand new car or a used car where one has to ask people- a mechanic, the dealer, they don’t know well enough to trust to figure out their choice of vehicles.

“The partnership with Autochek ensures that in these areas where we have absolutely no confidence or competence, we have a partner that has 100 percent competence to solve those problems. This not only ensures that the vehicles that are sourced are top notch, but also, all the peripheries regarding certifying the vehicles as worthy are put in place.

“These will facilitate things like insurance, as well as recovery and disposal in the event of an unfortunate scenario of a default, so the partnership with auto check solves these problems, making the risk assessment a lot easier, and quicker,” Gbenga Omolokun, Managing Director, VFD Microfinance bank, said.

As part of this partnership, Mayokun Fadeyibi, Senior Vice President, West Africa Autochek, said: “What we’re doing with Vbank is origination and lead generation and being able to get those customers on board working with Vbank based on their underwriting algorithm to actually ensure that we can smoothen that process where a customer goes from looking for a loan and waiting a month to being able to get their loan decision in days ultimately in as little as two days and then picking up their vehicle not too long after that.”

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Vbank says it is providing a streamlined loan origination process, with all paperwork and documentation running through an automatic underwriting algorithm for loan processing.

“This automated process improves the efficiency of the loan process and ultimately enhances the overall experience for individuals and businesses. The goal is to continue to build on this to create the first auto loan securitization product in sub-Saharan Africa,” Omolokun said.

With Africa’s largest population and a growing middle class, research shows that Nigeria represents one of the most viable automotive markets on the continent. However, a fragmented marketplace means stakeholders are often working in silos which leads to various inefficiencies across the value chain.

Autochek says it is bringing together all relevant stakeholders to improve the automotive finance value proposition in Nigeria and across the continent to drive shared value for consumers, manufacturers, financial institutions, and other stakeholders.

The automotive technology company is on a mission to deliver real change in how people across Nigeria access financing for their vehicles. By combining VFD’s range of financing products with its process, it is confident that it will be able to connect more customers to the financing they need to access the vehicles they desire, which should, in turn, catalyze more growth across the automotive sector.”

“Empowering individuals with the resources they require to reach their goals is at the core of what we do as a bank. Therefore, this partnership was a great fit to help us provide access to the requisite financing to customers who require it.

“Additionally, providing financing opportunities to businesses helps them reduce the amount of cash tied up in vehicle finance, which improves cash flow and helps these businesses grow faster. We have disbursed a substantial amount so far and look forward to seeing this grow,” Omolokun said.

In the event of default payment, Autochek says it will ensure the repossession of the vehicle, resell and ensure that Vbank gets the money.