Helping customers make better financial decisions
Enterprise
By
Nanjinia Wamuswa
| Oct 10, 2023
Financial services firm MOGO has reaffirmed its commitment to responsible lending by implementing customer-centric measures.
These changes are aimed at ensuring transparency, protecting customers from over-indebtedness and empowering them to make informed financial decisions.
The company believes in providing a clear and transparent process that enables customers to comprehend the terms of their loan contracts fully.
This approach is designed to prevent customers from facing financial hardships in the future, ensuring that their financial commitments are sustainable and in their best interests.
Chris Murimi, MOGO's Head of Underwriting, said the company is committed to giving value to its customers.
"We have implemented several measures to assess our customers' ability to repay loans effectively. Our credit analysts evaluate customers' income statements for the past six months, and we utilise artificial intelligence technology to improve credit scoring models and ensure thorough evaluations are done before approving new loan applications," he said.
One key aspect of the firm's responsible lending strategy is to provide customers with clear and comprehensive information about the loan terms upfront.
"Before customers enter into any agreement, we furnish them with all the loan details, including preliminary offers that outline the terms. This approach ensures that customers understand the instalment payments, associated fees, and the long-term benefits of the loan," Murimi said.
The firm offers flexible repayment terms - providing customers with the option of longer repayment periods and advising them to choose plans that align with their income. It also launched a free-to-use financial literacy tool in February 2023, enabling customers to assess their financial creditworthiness independently.
In cases where unforeseen hardships arise during loan repayment, the company offers support through tools such as loan temporary payment adjustments. This approach helps customers facing income reductions due to job loss, rising cost of living and inflation, or business challenges by extending their loan terms and reducing their monthly obligations.