Carbon to push more digital banking innovations after 10 years
Carbon, a Nigerian-based digital bank, recently celebrated its 10 years anniversary and will continue to create innovative banking services that make banking more accessible and flexible for consumers.
In an interview, Ngozi Dozie, co-founder and CEO of Carbon, identifies the fintech company as the best value to the customer in every vertical.
According to him, Carbon is versatile and operates a buy now and pay later service (BNLP) which makes us different from other fintech companies.
“Our BNLP product allows our customers to spread payments at 0 percent interest for up to six months, users are also entitled to a double-digit interest on their savings account and current account.”
In answering the question of how carbon has been able to protect its business from credit risk, Dozie said, although loans are being applied for online and dispensed in five minutes, Carbon makes sure a high level of data analysis machine learning is carried out on the phone of the creditor to determine their validity.
“ We check the credit bills and also access the transactions that has been made in the past,” he said.
In fixing issues like ‘know your customers (KYC)’ the fintech CEO stated that the app allows us to know our customers who have downloaded and filled in the necessary information about them, for example, their Bank verification number, passport, driver’s license, etc is been accessed for identification.
“ A credit bureau assessment is been done based on the information given to us” he said.
Responding to how Carbon is been able to manage their debtor who are reluctant to pay up, Dozie explains that when people can’t keep up they will help them reschedule their loan repayment terms .
“And when it is turning to a bad loan, such customers are reported to the credit bureaus who take it up from there,” he said.
In answering the question to what are their default rate like, he explains that over the years carbon has a 10 percent write-off, which means for every 10 persons that apply for the loan, one will not pay back on average and that has been consistent over time.
He said” all this is a question of your risk assessment which is consistent among other industries, although we are aggressive that our books of account are right from day one.”
“Every business face challenges and carbon is no exception,” he said. Dozie noted that trust is one of the key challenge Carbon face, which is common among online apps.