A brand new report on the Nigerian fintech area, which was sponsored by MasterCard and MTN Group, has revealed how Nigerian fintech corporations
A brand new report on the Nigerian fintech area, which was sponsored by MasterCard and MTN Group, has revealed how Nigerian fintech corporations are steadily exploring new alternatives. A few of the new areas they’re venturing into embrace micro-investment, insurance coverage (insur-tech), peer-to-peer transfers, and even wealth administration.
The report particularly talked about corporations like Cowrywise and Farmcrowdy as two prime examples of fintechs which have developed wealth administration platforms. Cowrywise, on one hand, targets Nigeria’s center class with on-line funding merchandise, whereas Farmcrowdy makes it doable for buyers to co-own farms by offering the needful capital for farmers.
Different fintech corporations are providing digital insurance coverage coverages that embody auto, training, well being, and funeral prices. The costs for the providers are mentioned to be as little as $0.50 monthly. The report, nevertheless, famous that the expansion of insur-tech providers in Nigeria are fairly sluggish when in comparison with what obtains in different African international locations equivalent to Kenya and Ghana. In line with a senior supervisor at GSMA Intelligence (Kenechi Okeleke) who was additionally quoted within the report, the rationale for the sluggish tempo in Nigeria is as a result of nation’s lack of enthusiasm for insurance coverage generally. He mentioned:
“Insurance coverage has at all times been a small sector in monetary providers in Nigeria. People have a tendency to not do insurance coverage. For giant gamers, their principal market has been the company sector.”
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The 20-paged report titled— State of play: Fintech in Nigeria —was unveiled yesterday throughout a webinar that was organised by The Economist Intelligence Unit, an arm of The Economist which carried out the analysis. Nairametrics participated within the webinar.
Presenting the report, a Senior Editor of The Economist Intelligence Unit, Melanie Noronha, disclosed that funds and remittances stay the 2 most developed subsectors within the Nigerian fintech area. Nonetheless, the fintech corporations are taking part in closely within the mortgage enterprise. They’ve a variety of digital lending merchandise focused at SMEs and people.
“There’s a brand new wave of start-ups within the lending area that are lending to each shoppers and small companies. The fee providers have constructed up knowledge that enable these start-ups to develop fashions of creditworthiness, for both folks or corporations, in a continent the place there may be little or no knowledge about folks’s credit score scores as a result of they by no means had formal entry to the monetary sector,” mentioned Khaled Ben, a senior associate at Lagos-based AfricInvest
Within the meantime, conventional banks are mentioned to be more and more leaping aboard the digital practice, as they shortly adapt by providing digital merchandise centered on loans. In the identical vein, telecom corporations are additionally taking part in an enormous function within the Nigerian fintech ecosystem.
Chances are you’ll learn the complete report by clicking right here.
