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What are the fintech trends in Nigeria in 2024? Financial technology, popularly called fintech, is earning a high throne in the Nigerian financial sector.
Fintech companies in Nigeria provide commendable solutions in the areas of payments, transfers, new bank accounts, loans, crowdfunding, cryptocurrency, etc.
In this guide, we shall explore the key fintech trends in Nigeria from 2024, and the projections for the coming year, 2025.
Fintech is drawn from the words, “financial” and “technology.”
Thus a fintech company is an institution that leverages technology to meet customers’ financial needs.
Some services that fintech companies provide include loans, virtual bank accounts, transfers, investment solutions, wealth management, financial advisory, saving opportunities, crowdfunding platforms, tokens, and so on.
Also read: Climate technology outpaces fintech, attracts 45% of startup funding in Africa for 2024
The following are some of the key characteristics that often define fintech companies:
There are currently over 150 licensed fintech companies in Nigeria, according to reports by the Federal Competition and Consumer Protection Commission.
Below is a list of top Fintech companies that are shaping fintech trends in Nigeria:
No | Company | Year of Establishment |
1 | Flutterwave | 2016 |
2 | Remita | 2005 |
3 | Paystack | 2015 |
4 | Interswitch | 2002 |
5 | Carbon | 2012 |
6 | RenMoney | 2012 |
7 | Piggyvest | 2016 |
8 | Cowrywise | 2017 |
9 | Bamboo | 2019 |
10 | MutualBenefit | 2003 |
The number of Fintech companies in Nigeria is rapidly on the rise. The industry is indeed gaining prominence in the nation.
But how well have fintech solutions penetrated our day-to-day activities in Nigeria? Let’s find out by studying key fintech trends in 2024.
Also read: Nigerian Fintech Startup Brass Acquired by Paystack, Ventures Platform, and Piggyvest
Digital money lending has become a popular option for Nigerians.
A survey conducted by SBM Intelligence revealed that 27% of Nigerians use loans to meet up with their monthly expenses.
Up to 80% of these loans are gotten from Fintech companies that venture into digital money lending.
Nigerians prefer these digital loan platforms to commercial loans for several reasons, such as:
The Federal Competition and Consumer Protection Commission reported that there are over 200 licensed digital money lenders in Nigeria. This was after a few licenses were revoked last year.
Even commercial banks are developing digital money lending platforms. In January 2024 for instance, the Central Bank of Nigeria licensed Oxygen X, a digital money lending platform by Access Holding Plc.
Some top digital money lenders in Nigeria as of 2024. are Renmoney, Moniepoint, Okash, and Opay. These lenders contribute largely to the fintech trends in Nigeria.
The robo-advisory service in Nigeria is expected to peak this year, according to reports by Statista.
Robo-advisory is the use of automation, AI and other advanced technology to manage users’ finances.
Robo-advisory platforms collect users’ financial status, goals and other financial information. With these, they offer recommendations about allocation, investments, savings, etc. They also provide wealth management.
Fintech companies that started robo-advisory in Nigeria include Piggyvest, CowryWise, Carbon, Bamboo, etc.
According to Statista, “The average assets under management per user in the Robo-Advisors market is expected to amount to US$8.35k in 2024.”
Statista also projected that assets managed by robo-advisory services in Nigeria will be worth at least USD4.72 billion before the end of 2024.
Also read: Global Investment in Fintech Drops 16% in Early 2024, Biggest Decrease in 7 Years
Non-fungible tokens (NFTs) are digital trading cards that secure ownership of a particular asset, usually artwork, videos, books, frames, music, collectibles, real estate, or even quotes.
These tokens are valued in Solana, Avalanche, Ethereum, and other forms of blockchain.
NFTs give creatives in Nigeria a global platform to display and monetize their art.
NFTs began contributing to Nigeria’s fintech trends in 2021. Its future appears promising too. Reports by Statista reveal the following NFTs projections:
Some other key Fintech trends in Nigeria are:
Fintech companies will continue to meet several financial needs of Nigerians in 2025.
Some of the key outlooks for fintech in Nigeria by 2025 are:
Several financial reports have revealed that up to half of Nigerian adults remain unbanked.
This is mostly due to the long procedures and requirements associated with traditional banking.
In villages and city outskirts, there are little to no physical bank branches. Thus indigenes prefer to find another way of preserving their money.
Fintech platforms in Nigeria have started to provide solutions to these challenges.
By 2025, more Nigerians are expected to open bank accounts under fintech platforms. This is due to easier accessibility and less technical requirements associated with fintech banking. Agents are also distributed across rural areas to help indigenes with setting up an account, mobile transfers, saving and withdrawing.
Also read: Zenith Bank’s Fintech Subsidiary Zenpay Partners AfCFTA on Innovative Trade Portal
DeFi is another alternative to traditional banking, with the use of blockchain. Its platforms provide services such as loans, trading, stablecoins, etc.
DeFi is set to gain traction in Nigeria by 2025, based on certain indices. Firstly, the use of cryptocurrency in Nigeria is the largest worldwide, reaching 32% as of 2024.
Secondly, DeFi solves vital financial problems for Nigerians. These solutions that DeFi brings attract users, venture capitalists and other investors. By late 2023, 35% of the funding raised by Nigerian startups attributed to the development of fintech products, DeFi inclusive. Fintech trends show that DeFi platforms are currently some of the most funded Web3 in Nigeria.
Digital currencies are becoming prevalent in the financial discussions of nations.
By late 2024/2025, the Central Bank of Nigeria is expected to accelerate the development and deployment of our digital currency.
This innovation will reduce transaction costs and enhance financial inclusion, among other benefits.
Artificial intelligence (AI) is changing how several things are perceived and operated worldwide.
By 2025, it is expected that Nigerian Fintech companies will greatly integrate AI into their operations. This will advance their solutions and services, helping them to solve greater financial problems in the nation.
With AI, fintech companies can personalise user experience to meet unique needs and preferences.
AI will also enhance customer service and efficiency and ease the detection of cybercrimes, among other benefits.
Also read: Breaking News: Lesaka to Acquire Fintech Platform Adumo for $85 Million
Between 2023 and 2024, climate talks gained a wide reach and is expected to double by 2025.
Conversely, fintech companies have joined the movement by promoting climate investment opportunities, carbon footprint tracking, etc.
There are several sustainability issues that financial habits can contribute to solving. By 2025, Environmental, Social and Governance (ESG) will be a stronger consideration in financial decision-making processes.
Below are some advantages of fintech companies:
Projections from The 2016 Financial Inclusion Summit revealed that digital financing in Nigeria could reach an annual GDP of $3.7 trillion by 2025, thus contributing to about 12% of the country’s GDP.
Some top Fintech companies in Nigeria are Flutterwave, Carbon, Interswitch, Remita, Jumia Pay, CowryWise, and Moniepoint.
A Fintech Company is a financial institution that leverages technology to meet customers’ financial needs.
Fintech has undoubtedly left Nigerians with a new way of managing their finances. It is a necessary development to enhance our financial habits and opportunities.
As fintech trends continue to shape our financial lives, growth becomes inevitable.
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