Carbon Transforms Consumer Lending with DataRobot
Company Size
11-200
Region
- Africa
Country
- Kenya
- Nigeria
Product
- DataRobot
- Carbon Mobile App
Tech Stack
- DataRobot's prediction API
- DataRobot MLOps
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Customer Satisfaction
- Revenue Growth
Technology Category
- Analytics & Modeling - Predictive Analytics
Applicable Industries
- Finance & Insurance
Applicable Functions
- Business Operation
- Sales & Marketing
Use Cases
- Fraud Detection
- Predictive Replenishment
Services
- Data Science Services
About The Customer
Carbon is a fintech company based in Lagos, Nigeria. It was started by Ngozi Dozie and his brother Chijioke. The company empowers individuals with access to credit, simple payments solutions, high-yield investment opportunities and easy-to-use tools for personal financial management. Carbon is committed to serving the underbanked population of Nigeria, a country where over 40 million adults do not have bank accounts. Despite having a staff of fewer than 150 people worldwide, Carbon has leveraged modern technology and data science to operate profitably in a market that traditional financial institutions have avoided for being too risky.
The Challenge
Ngozi Dozie and his brother Chijioke identified a significant gap in the Nigerian financial landscape, particularly in the areas of consumer lending and credit infrastructure. Out of 100 million adults in Nigeria, over 40 million of them did not have bank accounts, and there were only about 200,000 distributed credit cards in the entire country. Commercial banks were hesitant to offer consumer loans due to the high risk associated with lending to consumers without credit. Building a credit score in a market like Nigeria is a huge challenge, with little documented financial history or asset ownership. This presented an opportunity for Carbon, the fintech company started by Ngozi and his brother, to help serve the underbanked population of Nigeria.
The Solution
Carbon committed to a data-first strategy, leveraging modern mobile app technology with cutting-edge data science supported by DataRobot. Carbon's models leverage a diverse set of data from first-, second-, and third-party sources to build a credit rating. Within five minutes, users receive a credit rating and “good” customers gain access to better rates and higher limits, while higher-risk customers receive higher interest rates. DataRobot’s groundbreaking credit risk algorithmic engine powers Carbon’s mobile app. Carbon processes 150,000 loan applications each month through DataRobot’s prediction API and tracks those deployments in DataRobot MLOps. Four separate scorecards provide insight into each customer’s likelihood to default on their loans. The app then adjusts their lending terms accordingly.
Operational Impact
Quantitative Benefit
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