VeendHQ says its artificial intelligence platform, Vida AI, recovered N69 million from a delinquent loan portfolio worth N172.5 million, achieving a 40 percent recovery rate. The fintech firm stated this outcome significantly exceeds the typical five percent recovery rate seen in similar portfolios more than 90 days overdue, which would have yielded only about N8.6 million. The recovery was carried out for loans already classified as severely delinquent, a stage where most lenders face steep declines in collection success.
Olufemi Olanipekun, co-founder and chief executive officer of VeendHQ, said credit disbursement is only one part of lending, with post-disbursement recovery now posing the greater challenge. He explained that Vida AI allows lenders to upload overdue loan records, verify borrower details, assess repayment capacity and automate recovery actions. This process enables collections teams to prioritise accounts with higher recovery potential, reducing reliance on manual calls, agents and legal proceedings.
The company noted that as non-performing loans rise across Nigeria's digital lending sector, efficient recovery systems are becoming critical to sustaining credit growth. Lenders unable to recover funds effectively tend to adopt more conservative lending practices, which affects access for consumers and small businesses. Olanipekun emphasized that recovery infrastructure is now as important as loan origination, especially as competition increases among digital lenders. Tools that enhance both approval and recovery processes will determine which lenders can scale sustainably, he added.
Olufemi Olanipekun leads a fintech that recovered N69m from defaulted loans while highlighting lenders' weak post-disbursement strategies. His company profits from failures other lenders created by focusing only on disbursing loans. If recovery depends on a private AI platform rather than lenders' own systems, their risk models are fundamentally flawed. Nigerian borrowers may face tighter credit access not because of their behaviour, but because lenders built businesses that collapse after disbursement.
Editorial note: AI-assisted opinion, not established fact. Full disclaimer →
