Yes, KYC documents directly affect a user’s tier on Lendsqr. Every Lendsqr lender can easily configure KYC tiering to manage customers while ensuring compliance and a seamless onboarding experience. Typically, when a new user signs up on any Lendsqr-powered lender app, the system automatically creates the user as Tier 1. This allows lenders to collect only basic information initially, ensuring a smooth and fast sign-up process for users.
Read further: How to use Tiers to manage customer KYC
However, as customers continue to use the lender’s services, the lender can request additional documents and information to move customers to higher KYC tiers. Based on the lender’s configured requirements, the system automatically upgrades the customer’s tier when the customer submits the required documents. This flexibility allows lenders to manage risk efficiently, offering higher loan amounts and better services to customers who complete their KYC while reducing fraud.
KYC tiering also helps lenders comply with local regulations without compromising user experience. It enables a structured approach to customer verification while reducing the manual work for operations teams.
Further reading: Best KYC providers for lenders in West Africa