The landscape of banking in Nigeria is undergoing a seismic shift, thanks to the rise of fintech companies that are challenging traditional financial giants with innovative solutions.

According to Oluwa Sekemi Akinbo, a leading voice in the fintech space:

“The rise of fintechs has transformed the Nigerian financial space, improving customers’ realities and prompting traditional banks to evolve.”

Gone are the days when visiting a bank meant filling out lengthy forms and adhering to strict protocols. Akinbo notes that “growing up, going to the bank was a big deal,” but today’s customers seek convenience through digital-first services such as mobile banking apps, payment gateways, and digital wallets.

This transformation has made banking accessible to many, particularly in underserved communities where traditional banking services have historically struggled.

With fintechs facilitating the opening of bank accounts directly from mobile devices and allowing users to transfer money without internet access, financial inclusion in Nigeria has seen significant growth.

Akinbo highlights that “financial inclusion has grown significantly from 56% in 2020 to 64% in 2023,” as fintech solutions are reshaping how people think about money management.

These companies are not only banking the unbanked but also changing the way Nigerians perceive borrowing.

Reports indicate that between 2023 and 2024, 80% of loans secured by Nigerians were from fintechs like Renmoney, Moniepoint, Okash, and Opay.

“Securing your loan in less than 24 hours and minimal documentation are key benefits that traditional banks can’t always match,” Akinbo explains.

The rise of robo-advisory services has also gained traction, with platforms like PiggyVest taking the traditional concept of kolo—a local savings method—and turning it into a digital service.

“This innovation has given users a smart way to save and invest, with assets managed by robo-advisory services expected to reach at least $4.72 billion before the end of 2024,” Akinbo adds.

Despite the fintech revolution, Akinbo emphasizes that traditional banks still hold significant value, particularly for older generations who may prefer the security of physical banks.

“Customer trust has been long established by existing financial giants, and this is a great edge over fintechs,” she states, noting that traditional banks are still better equipped to handle large-scale transactions.

As traditional banks adopt mobile apps and online account opening processes, Akinbo believes there is room for both fintechs and traditional institutions to thrive.

“Each institution—whether fintech or traditional—offers unique strengths and advantages. The key is for all financial institutions to operate within the necessary legal frameworks and prioritize growth,” she asserts.

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