Sterling Bank Plc says it has partnered Bincom, an Information and Communication Technology firm, to introduce Social Lender scheme.

Social Lender, according to the bank, is a modified peer-to-peer lending solution which uses social media platforms to offer micro-credit to members of the platforms.

The scheme provides a platform for online fans, followers who are customers of Sterling Bank to obtain micro-credit loan via social media channels starting with Facebook and Twitter.

According to a statement from the bank, the application will integrate with existing financial structures of the bank such that users of the online platform can access small loans by normal methods of withdrawing cash without collateral.

The lender expressed confidence that the funds were easy to access and were delivered through convenient platform.

The statement quoted the Head, Social Media, Sterling Bank Plc, Mr. Kelvin Steve-Igbodo, as saying that the funds were accessed and delivered through the convenient platforms.

Steve-Igbodo, who spoke during the launch of the product in Lagos, said, “Our friends on Facebook or Twitter can apply for micro-credit by visiting the Social Lender site. Users who request the loans on the Social Lender platform are rated by the algorithm that calculates their social reputation using various criteria. Based on this, the loan is either granted or rejected by the back-end Social Credit Officer. Most importantly, the applicant must have an account with the bank.”

The official said the lender realised that one of the basic functions of a bank was to provide loan access for its customers. However, the bank said it had observed that the inconvenience of the processes often dissuaded potential customers from applying for loans.

“With the emergence of social banking on our various online platforms, the need to issue loans online has become relevant and this is why Sterling Bank has taken the initiative to develop a service that would make it easy for those who are active online to access micro credit,” he added.

He explained that the lender “cannot overlook the importance of social media in today’s society as it continues to play a unique role in the lives of people on a daily basis.”

“Today, we see the popularity of sites like Facebook and Twitter and how these channels influence change and decision making among individuals and nations.”

Punch