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New report details how Nigerian fintech companies are expanding their business scopes

The 20-paged report was unveiled during a webinar that was organised by The Economist Intelligence Unit.

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Nigerian fintech companies

A new report on the Nigerian fintech space, which was sponsored by MasterCard and MTN Group, has revealed how Nigerian fintech companies are steadily exploring new opportunities. Some of the new areas they are venturing into include micro-investment, insurance (insur-tech), peer-to-peer transfers, and even wealth management.

The report specifically mentioned companies like Cowrywise and Farmcrowdy as two prime examples of fintechs that have developed wealth management platforms. Cowrywise, on one hand, targets Nigeria’s middle class with online investment products, while Farmcrowdy makes it possible for investors to co-own farms by providing the needful capital for farmers.

Other fintech companies are offering digital insurance coverages that encompass auto, education, health, and funeral costs. The prices for the services are said to be as low as $0.50 per month. The report, however, noted that the growth of insur-tech services in Nigeria are quite slow when compared to what obtains in other African countries such as Kenya and Ghana. According to a senior manager at GSMA Intelligence (Kenechi Okeleke) who was also quoted in the report, the reason for the slow pace in Nigeria is due to the country’s lack of enthusiasm for insurance in general. He said:

“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.”

READ ALSO: Financial Inclusion: Fintech firms got $400 million investment in 2019 – Emefiele 

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The 20-paged report titled— State of play: Fintech in Nigeria —was unveiled yesterday during a webinar that was organised by The Economist Intelligence Unit, an arm of The Economist which carried out the research. Nairametrics participated in the webinar.

Presenting the report, a Senior Editor of The Economist Intelligence Unit, Melanie Noronha, disclosed that payments and remittances remain the two most developed subsectors in the Nigerian fintech space. However, the fintech firms are playing heavily in the loan business. They have a wide range of digital lending products targeted at SMEs and individuals. 

“There’s a new wave of start-ups in the lending space which are lending to both consumers and small businesses. The payment services have built up data that allow these start-ups to develop models of creditworthiness, for either people or companies, in a continent where there is very little data about people’s credit ratings because they never had formal access to the financial sector,” said Khaled Ben, a senior partner at Lagos-based AfricInvest

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In the meantime, traditional banks are said to be increasingly jumping aboard the digital train, as they quickly adapt by offering digital products focused on loans. In the same vein, telecom companies are also playing a huge role in the Nigerian fintech ecosystem.

You may read the full report by clicking here.

Emmanuel is a professional writer and business journalist, with interests covering Banking & Finance, Mergers and Acquisitions, Corporate Profiles, Brand Communication, Fintech, and MSMEs. He initially joined Nairametrics as an all-round Business Analyst, but later began focusing on and covering the financial services sector. He has also held various leadership roles, including Senior Editor, QAQC Lead, and Deputy Managing Editor. Emmanuel holds an M.Sc in International Relations from the University of Ibadan, graduating with Distinction. He also graduated with a Second Class Honours (Upper Division) from the Department of Philosophy & Logic, University of Ibadan. If you have a scoop for him, you may contact him via his email- [email protected] You may also contact him through various social media platforms, preferably LinkedIn and Twitter.

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Business

5 Nigerian startups selected to join 7 others at the Africa Tech Summit Connects (ATS)

5 Nigerian startups to join 7 other African firms on the Africa Tech Summit Connects (ATS).

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Five Nigerian firms have been shortlisted among the 12 African startups to pitch live at this month’s digital Africa Tech Summit Connects in Kigali, Rwanda.

This is to showcase their solutions to the global audience of 500 investors, corporates, and other stakeholders.

Disrupt Africa and Africa Tech Summit (ATS) disclosed it had reviewed its partnership to integrate startup-focused sessions plenary and pitching chances in its virtual Africa Tech Summit Connects event scheduled to hold virtually on the 20th – 22nd of October 2020.

What you need to know

ATS is a fully-virtual event and not a webinar. The event would maximize their time with AI-powered smart matchmaking and give startups opportunities in the online business community.

Why this matters

The three days course will enable them to engage with parties through a variety of online mediums. It would encourage the exhibition of recent developments in the continent across the start-up world, and it would focus on fintech, logistics, ed-tech, agri-tech, e-commerce, investment, regulation and policy, blockchain, connectivity.

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With over 50 African tech start-up applicants seeking to raise either pre-seed, seed, or Series A funding; 5 out of the 12 selected to participate and present their solutions to the audience, and also connect virtually with those interested are Nigerian start-ups. The selected start-up companies are;

  • Medsaf (Nigeria),
  • Seso Global (Nigeria),
  • Wella Health (Nigeria),
  • Vybe (Nigeria),
  • Scrapays (Nigeria),
  • Agro Innova (Ghana),
  • PayDunya (Senegal),
  • Snode (South Africa),
  • Moja Ride (Ivory Coast),
  • Eneza Telecom (Kenya),
  • Kolute Systems (Senegal),
  • Abiria (Kenya).

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Spotlight Stories

#EndSARS: Popular hacking group, Anonymous allegedly hacks Nigerian Govt. websites

Anonymous disclosed via its Twitter handle, that it had breached some Nigerian government websites.

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#EndSARS: Popular hacking group, Anonymous allegedly hacks Nigerian Govt. websites, How to protect your bank account from phishing attempts

Popular hacking group, Anonymous has claimed via its Twitter handle, that it had breached some Nigerian government websites.

READ: PZ Cussons suffers a pre-tax loss of N7.984 billion in 2020

The act is said to be in support of the ongoing #EndSARS protest that has taken over many cities in Nigeria, following calls for the disbandment of notorious police unit, the Federal Special Anti-Robbery Squad (FSARS) which has been alleged to be involved in abduction, harassment, extortion and murder of innocent victims.

READ: #EndSARS: I support the youths in this peaceful protests – Pastor Adeboye

Anonymous tweet, “Nigeria: Anonymous hacks multiple government websites in solidarity with #EndSARS protestors and retribution for violence by police. #OpNigeria #EndSARS Protest.”

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That said Anonymous did not disclose the identity of websites breached.

READ: #EndSARS: IGP says checking phones of Nigerians by any officer not acceptable

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Backstory

Nairametrics had earlier given vital insights on how for years, young Nigerians, mostly via social media, have called for the unit to be disbanded and rogue elements in the force brought to justice. Despite repeated promises by the government, they have failed to heed to their demands, triggering a new wave of protests that have now spread across the country.

READ: #EndSARS: Lagos sets up N200 million fund for victims of police brutality

What you should know

Anonymous is a popular decentralized global activist group that is popularly known for many cyberattacks against several governments, government agencies, corporations, and the Church of Scientology.

READ: #EndSARS: Despite scrapping SARS, why are Nigerians still protesting?

Why it matters

From demanding an end to SARS, prosecution of rogue police officers, and reforms; protesters are more emboldened, threatening to continue if all their demands are not met. The government is scrambling to contain a situation that is escalating and could dangerously metamorphose into violent clashes with authorities, leading to loss of lives and destruction of properties.

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Cryptocurrency

#EndSARS Twitter’s Jack Dorsey seeks support with Bitcoin

Twitter CEO, Jack Dorsey has joined in support of the #EndSARS protest.

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Square buys $50 million worth of Bitcoins, Twitter warns political figures to abstain from fake, misleading statements, Has Twitter's Jack Dorsey changed the popular narrative attached to Nigerians?, Twitter forecasts future drop in revenue after milestone record in 2019 Q4 , Twitter founder, Jack Dorsey invest N2.3 million in Nigerian startup, DevCareer , Some Verified accounts may not be able to tweet, as Twitter freezes password reset to address cyberattack

Billionaire boss of the leading social media platform Twitter, and payments company Square, Jack Dorsey, has joined in support of the #EndSARS protest that has overtaken Nigeria.

A few hours ago, Dorsey took to his Twitter handle to solicit support for Nigerian protesters seeking an end to Police brutality and calling for reforms.

He tweeted, “Donate via Bitcoin to help #EndSARS,” while also retweeting a tweet from the Feminist Coalition informing people of the modes by which contributions can be made.

Twitter CEO has been a longstanding Bitcoin supporter. In the past, he has said Bitcoin is “probably the best” native currency of the internet due to it being “consensus-driven” and “built by everyone.”

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Recall, some days ago, Square, Inc. (NYSE: SQ) led by Twitter’s Jack Dorsey on October 8th disclosed that it purchased, 4,709 bitcoins at an estimated worth of $50 million.
Square added it invested in cryptos because it saw it as a tool for economic enhancement via participation in the future of payment systems, which aligns with Square’s objectives.

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