Experts provide insight into fintech growth and operations
Industry leaders provided insight into the growth and operations of financial technology (Fintech) in the country.
They did the insight during the virtual couch session during the recent Lagos Startup Week. Hosted via Twitter Spaces by Stitch Nigeria Country Manager, Benjamin Dada and Branch Nigeria Managing Director, Dayo Ademola, who joined other FinTech industry leaders to discuss “What Future for fintech in Africa”?
Ademola said access to financial services has been a sign of development in underdeveloped countries while discussing the importance of financial services in society.
Klump CEO Celestine Omim said fintech’s rise has been encouraged by the expansion of mobile phone use and the Central Bank of Nigeria’s cashless policy.
Vesti co-founder Olusola Amusan added that the lack of access to financial solutions faced by a large portion of the Nigerian population presented an opportunity for fintech growth.
Head of Startup Program at Paystack, Nubi Kay agreed that fintech is the backbone of commerce, saying 60-70% of tech startup funding goes to the fintech space, which has formed the bulk of startups and valuable unicorns in Nigeria.
Speaking on the rise of the fintech space, Ademola had previously posited that its growth could be attributed to huge gaps that needed to be filled like the provision of credit and the ability to make small, quick loans without the burden associated with the traditional banking system.
This gap, she said, is why Branch International exists in a country like Nigeria, adding that “yet this opportunity has also had its share of challenges. Underwriting and scoring are major lending issues in the Nigerian system, from small retail loans to larger individual and commercial loans. Basically, how do lenders determine who is worthy and what patterns can identify customers who are not in default. »
Ademola explained how Branch solved this problem, saying, “At Branch, we’ve built a really good model that’s getting better every day to score people.
“Because we don’t have an accessible national credit score that can inform your lending decision, we have to rely on other data points. We’ve spent a lot of time refining the model, so we can offer small loans to people, because it is almost impossible to get a loan elsewhere.We are also good at predicting when people will pay us back.
Since its inception, Branch International has provided over N6 million in loans to Nigerians while providing investment opportunities at their fingertips. The digital finance app offers services like small loans of up to N500,000 ($1,200) and long and short term investment opportunities with one of the highest returns on investment in the world. Nigeria.