Nigeria FinTech Landscape - Impact Assessment
Executive summary
Executive summary
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Global FinTech growth is driven by a combination of factors - increased funding, modernized payment
infrastructure, the rise of tech players and the sharing of data and technology. Threat of big techs and challenging
B2C economics in developed markets are contributing to a gradual shift in FinTech models to B2B and increased
collaboration between banks and FinTech
The Nigerian FinTech landscape is attractive and growing, with a concentration in Lagos, focused on banked
customers and providing payment and lending solutions. However, dynamics are changing - new pockets of
growth are emerging driven by changes in consumer behavior, funding sources, and new business models; leading
to an extension of Financial Services to unserved and underserved populations
Despite the increased activity in the FinTech sector in Nigeria and the positive multiplier effect, economic impact to
date is low, with FinTech activity accounting for only ~1.25%¹ of retail banking revenues in 2019. A concerted
effort by all stakeholders to address structural challenges is required to capture a greater share of Nigeria's $50bn2
Digital Financial Services opportunity, and mitigate emerging risks as the sector evolves. This could help accelerate
the ambition to include more individuals into the formal financial system
There are a number of actions that could enhance Nigeria's Digital Financial Services landscape - leading to a
higher number of people included into the financial system. However five of them, if well executed could yield the
biggest impact - Innovation enablement, Digital ID, Credit infrastructure, Digital infrastructure and Technology talent
pipeline
1.
FinTech revenue as a percentage of total retail banking revenue
2. Assuming growth rate pre-COVID-19
Source: McKinsey Global Banking Pools, MGI Digital Finance for all 2016
EFINA
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