Nigeria FinTech Landscape - Impact Assessment
Nigeria FinTech Landscape
Across the value chain, there are a large number of unmet needs,
especially in the mass and SME segments (usually the excluded)
Nigerian financial services revenue pool
2022 projections, Naira Bn
High
Low High market opportunity
BOP1
Informal Formal Formal Core
Mass2a Mass2b Youth3 Middle4
SME
owner
Young
Affluent5
Senior
Affluent
Accounts
Savings/
investments
Lending
Low
384
Medium
80
Low
431
Payments
High
100
Low
Insurance
Total
Medium
opportunity
Competitive Low
Low
Medium Medium High
Medium High
High
intensity
Total market
240
286
469
size ('Bn)
Competitive Total market
intensity size ('Bn)
Key takeaways
Lending presents the biggest
revenue opportunity - serving
customers across youth, SMEs
and affluent
Growth in the mass market
and low competitive intensity
makes it an attractive market
for FinTech
Insurance remains
underserved and
underpenetrated -
opportunities exist in health
insurance
1.
BOP includes rural dwellers and subsistence farmers
2a. Mass market includes housewives, petty traders, okada riders, artisan/domestic worker
2b. Includes teachers, entry level employees, civil servants
3. Youth includes students, early graduates and hustlers
SOURCE: McKinsey Africa Retail Banking report, Team Analysis
4. Middle market include young professionals, mid-level civil servants
5. Young affluent includes mid level execs & middle aged professionals
6. SME owners includes large traders, freelancers, family business owners
7. Seniors include senior civil servants, senior executives and retirees
EFINA
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