Koolboks Nigeria, led by CEO Ayoola Dominic, addresses Nigeria’s critical refrigeration needs. Fish traders suffer from unreliable cooling facilities, resulting in 30% of fish products going to waste. Koolboks’ innovative Koolhome Pay-as-You-Go Solar-Powered Refrigeration model offers affordable cooling services. Unlike centralized hubs, their decentralized approach benefits individual customers and small groups. Through $10 to $20 monthly payments, customers can own off-grid solar refrigerators. Lidya Collect, highlighted in this case study, streamlines customer acquisition and loan management, contributing to Koolboks’ mission of transforming the energy sector.
The Story of Koolboks Nigeria
Koolboks Nigeria, a sustainable cooling company, addresses the critical need for reliable refrigeration in Nigeria, particularly for fish traders in open-air markets and small kiosks. With 30% of fish products going to waste due to inadequate cooling, Koolboks provides innovative solutions to this problem. Recognized on the Cleantech 50 to Watch list and as a finalist for the Zayed Sustainability Prize, Koolboks is committed to revolutionizing the energy sector.
As a credit institution, Koolboks faced challenges in credit risk management. Partnering with Lidya, they leveraged Lidya’s expertise in assessing borrower creditworthiness, monitoring loans, and mitigating default risks to enhance efficiency and competitiveness. This strategic partnership aims to ensure sustainable growth in a competitive market.
The Challenge of Credit Risk Management and Adaptation Before Lidya
Koolboks Nigeria, as a credit institution, struggled with managing credit risk. They needed robust systems to assess borrower creditworthiness, effectively monitor loans, and mitigate default risks. Additionally, the need to stay competitive in a rapidly changing market demanded constant adaptation and innovation. These challenges underscored the necessity for effective solutions to enhance operational efficiency and maintain a competitive edge.
Partnering with Lidya addressed these issues. Lidya’s expertise in credit risk management provided Koolboks with the advanced tools required to assess creditworthiness, monitor loans effectively, and reduce default risks. This partnership not only improved Koolboks’ operational efficiency but also ensured they remained competitive in the market.
Why Koolboks Nigeria Chose Lidya CaaS Solutions
Koolboks Nigeria’s decision to partner with Lidya and explore our Collections Solution was driven by a strategic need to enhance their credit operations, particularly efficient money collection, borrower creditworthiness assessment, loan monitoring, and default risk mitigation. The process began with Koolboks identifying a gap in their existing system—specifically, the need for a direct debit platform that would streamline the collection of client payments while minimizing direct contact, an essential factor in maintaining operational efficiency and customer satisfaction.
The key criteria for Koolboks decided to use Lidya CaaS Solutions, the perfect duo with Lidya Bridge and Lidya Collect, included the following:
- Efficiency in Direct Debit Collections: Koolboks needed a platform that could automate and simplify the payment collection process. Lidya Collect stood out with its direct debit capabilities, allowing it to securely and efficiently collect payments from clients without the need for frequent direct interactions.
- Comprehensive Credit Enabler Infrastructure: Beyond just payment collection, Koolboks required a comprehensive suite of services to support their credit operations. Lidya’s integrated solutions in Customer Acquisition and Loan Management provided the tools to assess borrower creditworthiness accurately.
- Loan Monitoring and Risk Mitigation: Lidya’s infrastructure also offers advanced loan monitoring capabilities, enabling to keep track of the loan portfolio in real-time. This proactive approach to loan management helped in identifying potential defaults early and implementing measures to mitigate risks, thus safeguarding Koolboks’ financial stability.
The decision to choose our services was further reinforced by the innovative and adaptive nature of Lidya CaaS Solutions. Koolboks recognized that in a competitive and dynamic market, staying ahead required addressing current challenges and anticipating future needs. Lidya’s ability to evolve and offer scalable solutions provided Koolboks with the confidence that their partnership would continue to deliver value over the long term.
How Koolboks Nigeria Used Lidya CaaS Solutions
By integrating Lidya CaaS Solutions (Lidya Bridge and Lidya Collect) into its financial operations, Koolboks Nigeria successfully addressed the challenges of assessing borrower creditworthiness, monitoring loans, and mitigating default risks. John Lewis, the Lidya Collect business operations analyst, oversaw the onboarding process, ensuring all requirements were met and providing continuous support. His efforts were instrumental in integrating Lidya’s solutions seamlessly into Koolboks’ operations, facilitating a smooth transition and maximizing the benefits of the partnership. The platform’s unique features provided the tools necessary for Koolboks to enhance their financial management, leading to increased revenue, better loan oversight, and effective risk mitigation. Ultimately, Lidya played a crucial role in enabling Koolboks Nigeria to achieve sustainable growth and continue delivering innovative refrigeration solutions to their customers.
- Revolutionizing Credit Assessment: the platform provided a reliable method to evaluate the creditworthiness of potential borrowers. This technology enabled them to extend credit confidently, knowing they were making informed decisions based on comprehensive data. As a result, the risk of defaults decreased significantly, and the efficiency of their lending process improved.
- Enhancing Loan Monitoring: this capability allowed to maintain continuous oversight of all active loans, facilitating prompt identification and resolution of any issues that arose. The ability to monitor loans in real-time ensured that repayments were on schedule, further minimizing the risk of defaults and enhancing the overall financial health of the company.
- Implementing Effective Risk Mitigation: the robust risk management tools provided detailed insights and actionable data, enabling Koolboks to implement measures that safeguarded their revenue stream and ensured the sustainability of their business. By mitigating risks proactively, Koolboks could focus on expanding its reach and improving its service offerings without the constant worry of financial setbacks.
A representative from Koolboks Nigeria highlighted the transformative impact of Lidya CaaS Solutions on their business: ” It has impacted us positively as far as revenue is concerned and also the management of our loans.”. This testimonial underscores the value that Lidya brought to Koolboks, not only in terms of operational efficiency but also in fostering business growth.
The Results
The implementation of Lidya CaaS Solutions brought significant improvements and tangible results to our customer. Here are the key outcomes observed:
- Improved Non-Performing Loans (NPLs) Collection: Lidya Collect enhanced the efficiency of collecting non-performing loans, achieving a reduction in NPLs by an impressive 5% to 10% compared to the previous system.
- Increased Revenue Growth: Since integrating Lidya Collect, the institution has experienced notable revenue growth ranging between 10% and 20%. This significant increase underscores the impact of our product on the overall financial health and operational efficiency of the institution.
- Enhanced Collection Rates: On a monthly basis, the institution was able to collect 10% to 20% more than before, demonstrating superior performance in streamlining collection operations and improving cash flow.
The institution is eager to continue its cooperation with Lidya Collect, particularly through the adoption of the Lidya Bridge app. This new initiative aims to address the challenge of assessing customer creditworthiness, further strengthening the institution’s financial operations and decision-making capabilities.
These results illustrate the substantial impact Lidya has made on the institution, driving both financial growth and operational efficiency.
Call-to-Action
Don’t let manual payment collections slow down your business growth. With Lidya CaaS Solutions, you can automate and enhance your customer repayments and debtor funds recovery, freeing up your resources to focus on what truly matters—growing your business. Experience accelerated growth, improved cash flow, and increased revenue and business margins by leveraging automated standing instructions that cover multiple banks, with payments made directly into your Lidya Wallet.
Make the smart move today to streamline your accounts receivable process. Take the next step towards effortless collections and enhanced funds recovery.
Start your journey with Lidya now !
