Report on the State of play: Fintech in Nigeria, shows expanding business scopes

The Nigerian fintech sector is experiencing tremendous growth as innovators come up with financial solutions and attract investment. A report done on the fintech sector explored the industry players and examined their rapid expansion. The new areas of investment center around insurance, wealth management, micro-investment, and peer-to-peer transfer.

The report mentions Farmcrowdy and Cowrywise, as two leading startups in the space already running wealth management platforms. Cowrywise aims for the Nigerian middle-class with their online investment products. Farmcrowdy gives investors an opportunity to co-own farms by offering farmers capital investment options.

Other fintech startups offer digital insurance to; auto companies, the health sector, education, and funerals. Prices charged for the cover are as low as $0.50 monthly. The report highlights some shortcomings such as the slower pace in setting up a fintech startup in Nigeria, compared to Ghana and Kenya.

Kenechi Okeleke, a senior manager at GSMA Intelligence, was quoted in the report attributing the snail’s pace progress in Nigeria to low enthusiasm for insurance.

“Insurance has always been a small sector in financial services in Nigeria. Individuals tend not to do insurance. For big players, their main market has been the corporate sector.”

Most traditional Nigerian banks are adjusting to the new wave by offering digital loan products. Telecom companies are also key players in the Nigerian fintech sector.  The report was jointly funded by MTN and MasterCard and released on 11 June.

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