Zeeh Africa, an Open Banking financial technology company, today announced the launch of its loan recovery solution powered by Global Standing Instruction (GSI) technology.
Unlike traditional recovery methods, Zeeh’s innovative system offers a direct and automated approach to fund recollection, providing a seamless solution for lenders grappling with recovery challenges.
The GSI technology will address the challenge of loan repayment for lenders in Nigeria and beyond and will serve as a robust last-resort system, enabling connected lenders to directly debit accounts of loan defaulters in other banks.
Speaking on the solution, David Adeleke, co-founder/CEO at Zeeh Africa stresses that the GSI-powered solution introduces a cutting-edge system that merges the efficiency of Direct Debit with GSI functionality, offering an advanced tool beyond conventional recovery approaches.
This combined system simplifies the process and proves effective in reducing non-performing loan rates. Borrowers initiate the process by granting consent through their Bank Verification Number (BVN) and linking all associated accounts, ensuring comprehensive access to relevant information for more effective recovery.
“Zeeh Africa’s Direct Debit feature enables borrowers to designate their primary account for debits. However, in cases of failed debits, the system seamlessly transitions to the GSI feature, acting as a fail-safe mechanism when Direct Debit encounters obstacles such as no debit or partial debit”, he noted.
Notable features of Zeeh Africa’s GSI solution include:
- Comprehensive Control: Zeeh Africa’s Direct Debit (GSI) system provides businesses with control features, allowing them to initiate, pause, or halt ongoing debits as necessary.
- Transparent Transactions: It allows users to gain insights into direct debits, transaction details, and manual payments effortlessly through dedicated endpoints, ensuring transparency throughout.
- Flexible Scheduling: Users can schedule, delete, or simulate payments according to business requirements with Zeeh Africa’s versatile API endpoints.
- Automation for Enhanced Efficiency and Accuracy: The integration of GSI and Direct Debit introduces automation into the recovery process, expediting fund recollection and minimizing the potential for human error. This ensures precision and reliability in every transaction.
- Effortless User Engagement: Users can utilize Zeeh Africa’s endpoints to resend consent and mandate links, ensuring seamless user engagement throughout the process.
Zeeh Africa’s integration of Global Standing Instruction and Direct Debit marks a significant advancement in loan recovery within the financial sector.
This combined system, emphasizing borrower consent, linked accounts, and automated recovery, presents a pioneering solution for lenders and Buy Now Pay Later (BNPL) services, shaping the future of loan recovery for digital lenders worldwide.
In addition to its use case for loan recovery, Zeeh Africa’s GSI technology can also be used for the collection of recurring payments, a key feature in the company’s Open banking capabilities.
