Nigeria FinTech Landscape - Impact Assessment

Nigeria FinTech Landscape Nigerian FinTechs are primarily focused on payments and consumer lending across formal and informal segments. ESTIMATES McKinsey FinTech Landscape, No of FinTech as % of database Customer segments 11% 6% Consumer SME Corporate/ FSP 30% 18% 20% 4% 0% Share of total banking revenue pools FinTech <5% 5%-7.5% 7.5%-10% >10% x% % of FinTech in database (% adds up to 100%) Д Key insights Payments have served as the entry point for most FinTechs ~90% of customer touch points are in payments Lower barriers to entry in payments ~15% of revenue pools are in payments Lending has also seen growth in FinTech activity Large unmet demand Leverage of analytics on available customer data (e.g. phone data, payment data) to determine lending risk Reduced barrier to entry (players leveraging MFB and State Money Lender Licenses) Rising activity in wealth management: Unmet need for better return Payments disruption enabling increased customer control over their money Gaps still exist in "non-low hanging fruits" areas, specifically MSME lending and insurance 3% 2% 3% 0% 2% 000 1% Insurance 0% Payments 0% Lending Savings & $ Investments Accounts Products/ capabilities SOURCE: McKinsey FinTech database, Panorama Global Banking Pools EFINA 38

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