Fintechs key to bridging financial inclusion gap in Nigeria, others – PwC

A map of Nigeria

By Peter Egwuatu

Pricewaterhouse Coopers, PwC has said that Fintechs is essential and essential to bridging the monetary inclusion hole in Nigeria and different African international locations the place the casual sector stays predominant of their economies.

According to the PWC 2019 Global Fintech Report: “Fintech investment in Africa is likely to be valued at $3 billion by 2020, with South Africa, and Nigeria receiving a significant portion of these investments.”

The Economist Intelligence Unit launched a report titled State of play: Fintech in Nigeria, sponsored by Mastercard and MTN Group. The report examines the important thing traits in Nigeria’s fintech sector and assesses each trade drivers and impediments to additional progress.

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The report famous that Nigerian fintech is branching out from funds into lending, micro-investment, wealth administration, peer-to-peer transfers, and insurance coverage.

“Payments and remittances are probably the most developed subsector so far. The nation has seen a surge of recent and simplified apps to assist retailers, companies, and customers. Mainstream banks, initially gradual to react to the digital period, have shortly tailored to supply apps and instruments in areas like loans, whereas non-traditional gamers—together with telecom firms and retailers equivalent to supermarkets—are coming into the finance area.

Nigeria’s regulatory setting balances innovation and shopper safety however should regularly evolve to answer market dynamics.

“While there is no fintech-specific law as yet, a sector roadmap provides overarching direction to the industry. A legal framework may prove necessary to manage the emergence of new types of fintech and accelerate fintech solutions for “insurtech” and wealth administration.

“To develop and flourish, Nigerian fintech needs to address shortcomings in the broader ecosystem. While venture capital investment is forthcoming, the majority comes from abroad with Nigerian investors currently playing a small role. As the sector matures, skills gaps are emerging outside of product development in areas such as business management and marketing” the report emphasised.

 According to Mastercard, “As a global fintech leader, Mastercard is proud to support Nigeria and the rest of Africa in digitization efforts for a more inclusive economy. At Mastercard, we believe that fintech are contributing to the rapid digital transformation that makes lives more convenient, simpler, and rewarding – especially across Africa.”

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