N1 billion daily loan:Is Access Bank the new recourse for businesses?

Access Bank said the total value of loans disbursed daily on its two digital lending portfolios, PayDay and QuickBuck, has risen to N1 billion. This latest record mitigates the failure of most deposit money banks which harp on the high risk of lending to the real sectors. The new lending record brings a timely reprieve to the growing entrepreneurship base in the country.

Notably, the Central Bank of Nigeria recently reviewed upward the lending-to-deposit ratio for banks from 60% to 65% despite the unyielding stance of the major financial institutions in Nigeria. This is seen as a bold step considering most of the banks did not even meet the first quota. However, Access Bank’s exceptional performance in that area must inspire the defaulting banks to follow through despite the glaring high risk.

Victor Etoukwu, Executive Director, Retail Banking, Access Bank, while announcing the new record, said the bank made a ‘deliberate choice’ to be a formidable recourse for individuals and businesses with credible source of income.

According to him, “This year alone we (Access Bank) have disbursed over N45 billion in over 2 million disbursements to individuals and have recently witnessed a spike in our volumes hitting N1 billion daily. This achievement and our focus on retail lending reiterate our commitment to democratise access to financial services leveraging digital technology,”

Chinedu Onuoha, Head of Digital Banking, Business Development, Access Bank, also reiterated the bank’s overall commitment to providing credit facilities to Nigerians:

“Our objective is to ensure that there is a digital loan product for every adult Nigerian who has proven means of livelihood because we know that every individual at one point or another requires some form of financial support. Our flagship digital loan product, PayDay Loan, is tailored to help individuals meet their urgent cash needs. Though the tenor for this loan is 30 days, we also have loans with tenors of three months and six months,”

Although providing realistic interest rates is another challenge, Access Bank’s willingness to offer support to the most impactful sectors of the economy, notwithstanding, is encouraging.

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