Zeeh Africa, a Nigeria fintech that deals with an open banking system, has revealed a solution founded on the Global Standing Instruction Technology (GSI) to make loan repayment more efficient.
Zeeh Africa was founded in 2022 by David Adeleke, the CEO, and Frank Uwajah in Nigeria. The fintech company aims to tackle the issue of dispersed financial information across different systems and platforms by providing a unified solution that allows banks and insurance companies to operate smoothly. Their goal is to promote financial inclusion with a safe and intuitive platform that makes financial management easier and credit applications for individuals and businesses more fruitful.
Zeeh Africa added a loan repayment solution to their services, which offers an advanced method of loan repayment more efficiently than usual ones and this development has been successful in reducing the number of defaulted borrowers.
The CEO explained that with the GSI solution, businesses will have special controls to start, pause, or stop taking money from borrower’s accounts especially when debt payments are overdue. This system also makes things clear, flexible, automated, and keeps people involved. To initiate the process the business will acquire the borrower’s Bank Verification Number (BVN) to permit them to start. This BVN is like a special identification number for their bank account, and it is linked to every other account owned by the borrower. This will enable the system to access their financial information help recover payments faster and handle related issues.
He further stated that With Zeeh Africa, borrowers can specify their primary account for debits using the Direct Debit option. But when a debit attempt fails, the system automatically switches to the GSI function, which functions as a failsafe in case Direct Debit encounters problems such as unsuccessful or partial debiting.
The Global Standing Instruction (GSI) was implemented by the Central Bank of Nigeria (CBN) on August 1, 2020, to improve loan repayment by allowing lenders to identify consistent defaulters, lowering non-performing loans and enhancing financial stability among financial institutions.
The GSI enables financial institutions to hold loan defaulters accountable for their debt. Overall, it serves to promote responsible and debt repayment procedures in Nigeria.
