Nigeria with a growing population of over 150 Million people has the capability of becoming one of the leading countries in the Fintech market in Africa.
Nigeria with a growing population of over 150 Million people has the capability of becoming one of the leading countries in the Fintech market in Africa. It is worthy to note that there is a growing Fintech ecosystem in Nigeria which consists of over 50 companies with investments exceeding $200M in the last Two years. These investments spread across different categories which include payments and remittance, lending and financing and a whole lot of relatively untapped sectors which includes wealth management, business solutions, banking and trading. Fintech is becoming a major component in the payment market and has even become even more prominent in recent times threatening the traditional payment incumbents.
We have seen FinTech grow over the years beyond just money transfer platforms to include many forms of technological innovations in the financial sector. It is important to know that the impact of these financial services goes beyond providing services to providing real value which unlocks opportunities for Millions of people. We have seen how Fintech change the way we do business in Nigeria, turning Nigeria from a cash society to a cashless society and having to sort out transactions with just the use of a mobile phone and an internet connection. Nigeria’s startup has developed effective payment and remittance models such as Quick teller, Firstmonie, Remita, Paga, and a whole lot of others which lets you send or receive money and also make bill payments on these platforms. Fintech innovations also abound in the Lending and financing sectors with lending platforms such as Aelia, One credit, Paylater and others which allows you to apply for quick loans without the rigors of having to provide collateral. These Fintech innovations can also be found in the merchant services with innovations such as PayAttitude, Payporte, and Slimtraders which are services that goes from inventory management to shopping carts and also allows people pay for items with just the tapping of their phones with the payattitude pad. There are also opportunities in the Banking sectors, with most of the banks like First bank and GT bank which has engaged in mobile money platforms such as *894# and *737#.
With these Fintech innovations, Nigeria has exhibited significant money operations from an average monthly transaction of $5 Million in 2011 to $14.8 Million in 2016. It is obvious that Nigeria is not constrained by the systems of traditional banking industries and has allowed for new technologies and solution to fill in the gaps. It is worthy to note also that in a market, where 86% of its population is uninsured; there are relatively untapped sectors in the Nigeria Fintech Ecosystems. With the emergence of mobile applications that are designed for easy access to transactions, the pace of change in the Insurance sector will accelerate more quickly than can be envisaged.
The Fintech landscape has thrown a wide challenge to the traditional old firms and it is affecting several aspects of the consumer payments thereby threatening to significantly change the dynamics of the industry. With this in mind, it is worthy to note that Nigeria has the potential to becoming one of the leaders of Fintech space in the world and a lot of opportunities are abound in Nigeria.
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