Nigeria FinTech Landscape - Impact Assessment
Impact of FinTech - Pricing
FinTechs tend to be up to 50%-80% cheaper than banks on transaction fees and
offer 2-3X traditional interest rate on savings
Product
Payments
Traditional Players
N10-N50 transfer fees
FinTech
N10 transfer fees
Bill payments at N100
Bill payments at NO
No charge for Airtime
Savings
4%-5% interest rate p.a
Accounts
N50 quarterly card maintenance
fee on savings accounts.
Cashback upon airtime
recharge
10%-15% interest rate p.a.
No card maintenance fee
There are still opportunities for
FinTech to improve pricing
particularly in lending:
ā
ā
Current lending APRs range
between 50% to 360% vs 16%
to 30% for traditional players
largely driven by FinTech high
cost of funds & risk profile of the
underserved
Lack of any Islamic finance
product excludes a segment of
the population operating on
Islamic principles
SOURCE: Company Website, Press Search
EFINA
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