Nigerian Fintech Startups established one of the hottest FinTech hubs

Professionals at WeeTracker emphasize important Nigerian fintech startups that could potentially redefine the financial services landscape in the next coming years. A rapidly growing young population, coupled with the exponential growth of mobile phone lines, huge financial inclusion potential based on bank verification numbers, and a relatively strong talent pool have driven business adoption across the globe. Some of the highlights of opportunities within Nigeria’s financial services industry through industry professionals include the following:

Predominantly cash-driven Nigerian Fintech Startups Economy aims to respond well to the FinTech Opportunity. The exponential growth within the mobile money operations through an average monthly transaction almost exceeds year by year. The growing FinTech penetration gets attributed to a surge in eCommerce and Smartphone Penetration. FinTech Investment within Africa has increased specifically from around $198 to around $1500 by 2022. Since the investors get increasingly attracted to the industry’s potential to tap into Africa’s huge unserved/underserved population. Investments within Nigeria and Africa are as a whole primarily focused on payment solutions. FinTech Segments like lending and wealth management turns to be relatively nascent stage.

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Smartphone entrance among Nigerian fintech startups is estimated at 28%, with 76% of internet traffic via mobile phones. The payments space is one of the most attractive segments for fintech in Nigeria and has become a major source of revenue for banks and other payment service providers. As part of its Payment Systems Vision (PSV) initiative to reform the payments industry, the Federal Government of Nigeria introduced the Cashless Nigeria policy which gives rise to a number of innovative payment systems. This happens with changing consumer patterns, increasing use of smartphones, increasing internet penetration, and deployment of ATMs.

A strong talent pipeline of inexpensive as well as easy-to-hire tech workforce occurs out to be one of the driving forces behind the emergence of Nigerian Fintech Startups. About 80-90% of the Nigerian traders own a mobile phone. Findings also represent that 74% of them prepare to learn new technology and that over 30% deny access to credit through a financial institution. Also necessary is that 56% of the traders survey source funds through their families, friends, and unions. With the size of annual diaspora remittances to Nigeria estimated at around $27 in 2022, the country is one arena prone to disruption through digital currencies.

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While Blockchain is within its early stages of adoption in Nigerian Fintech Startups, consumers use Bitcoin and digital currencies since the late 2000s. According to a report in Nigeria, 80% of adults paid utility bills with cash, while 15% made payments directly through a financial institution account. Another 1% of the users reported that they paid their utility bills both through a financial institution account and through a mobile phone- in all of the cases through a mobile money account. There has been steady progress in improving financial inclusion in Nigeria. It is estimated that about 40% of Nigerians are still financially excluded and the target for 2022 is around 25%.

Since the Nigerian Customer evolves, Banks leverage new technologies to improve the banking customer experiences since the digital channels conduct financial transactions. The CBN through the Banker’s Committee and in collaboration with all banks in Nigeria launched a centralized biometric identification system also known as Bank Verification Number (BVN) for the Banking Industry. Today, all P2P Lenders depend upon BVN in addition to other information for operating their lending models.

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Nigerian Fintech Startups turn to be at forefront of Africa’s FinTech revolution, and multiple of them have turned out to become formidable players to watch out for. FinTech Companies in Nigeria pick up a majority of the funding that came into the country. The adoption of digital financial services is also growing steadily. By 2022, the country’s finTech Sector is expected to bring in revenues of million around $US543. If you are the one who is in a great search of FinTech Startups so as to boost your business then you are surely coming up with one of the best places to enhance your business. You can take your business towards great heights of success attainment with a lot of profits with African Fintech Startups.

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