At a time when technology is disrupting the global financial services industry, Nigeria has not been left out of the change. Although a cash-based economy, Nigeria’s financial system has been receptive to the new transformations ongoing in the industry.
Nigeria’s fintech landscape consists of close to 250 fintech companies, key stakeholders (banks, telecom companies, and the government), enablers and funding partners (i.e., universities and research institutions, investors, incubators, technology, and consumers).
The fintech space in Nigeria is very competitive as there are countless numbers of fintech startups/companies competing for market share. This competition has forced traditional banks to become innovative to guarantee their survival amidst the onslaught of fintech startups or digital banks.
The increasing growth in Nigeria’s Fintech space has seen quite a number of startups attract a lot of investors and venture funds. These investors have done well to pump in millions of dollars in the industry. Here are some of the top fintech startups in Nigeria that are making financial services accessible to the unbanked population in Nigeria, promoting financial inclusion and enabling seamless payment: Kuda, Flutterwave, Carbon, OPay, Terrapay, Lidya, PiggyVest, Fairmoney, Chipper cash, Paga, Cowrywise, PorkMoney etc.
In Nigeria, the presence of FinTech is quite notable, and like its ecosystem, there is a continuous rise in the number of FinTech startups looking to offer better services than pre-existing ones. FinTech companies in Nigeria are looking to expand the tentacles of the financial sector to reach its un-banked population of 60 million people (more than a quarter of its estimated 200 million population) through mobile apps.
The FinTech companies in the country are also looking to make an array of financial services more available to the banked population by providing seamless services like promising more interests on savings and investment than traditional banks.
Regulation of FinTech in Nigeria is overseen by the Central bank. As a measure of risk management, the CBN places a financial barrier of a minimum of $275,000 on entry into the FinTech market to help secure funds and credibility of operators.
The growth in the FinTech industry in Nigeria is quite commendable, as it has helped proffer solutions to not only technological problems across various industries, but also, unemployment in the country at large.