Lovonus Microfinance Bank Limited, one of Nigeria’s fastest-growing financial institutions, is making significant strides in digital transformation. By investing heavily in digital platforms and mobile banking technologies, the bank aims to reduce operational costs and extend its reach to underserved communities across the country.
In an exclusive interview with BusinessDay, Adeola Ayibiowu, managing director and chief executive officer of Lovonus MFB, emphasised that digitisation is not just a cost-saving measure but a powerful tool for enhancing service delivery and operational efficiency.
“Beyond automating our processes, we’ve seen real impact—improved loan monitoring, more efficient collections, and enhanced customer convenience,” Ayibiowu said.
He explained that the bank prioritises personalised engagement over a one-size-fits-all approach.
“We assess each customer’s situation to restructure loans, extend tenures, or offer moratoriums. This not only builds loyalty but also protects our loan book,” he noted. This tailored financial support, he added, has strengthened customer relationships and reinforced Lovonus’ financial stability.
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Ayibiowu highlighted the bank’s evolving loan portfolio, which now includes structured credit products, asset-based lending, and targeted financing for Small and Medium Enterprises (SMEs). These solutions, he said, are more aligned with Nigeria’s economic realities and are designed to support long-term business sustainability.
“We also offer financial literacy training because knowledge is power. Educated clients are less likely to default and more likely to grow,” he added.
On risk management, Ayibiowu revealed that Lovonus MFB has updated its credit assessment frameworks by integrating non-traditional indicators.
“We now use alternative data, including mobile transaction histories and behavioral patterns, to make more accurate lending decisions,” he explained. This approach, he said, enables the bank to assess creditworthiness, particularly among informal sector clients who lack conventional financial records.
Despite macroeconomic headwinds and sector-specific hurdles, customer interest in microfinance banks remains strong, Ayibiowu noted. For millions of Nigerians excluded from traditional commercial banking, MFBs serve as a crucial access point to financial services.
“There is still strong interest from customers. For many, MFBs remain their only banking option,” he observed.
From an investor’s perspective, he added, microfinance institutions, especially those that are tech-driven, community-oriented, and well-managed continue to attract attention.
“The key is innovation, inclusion, and integrity. That’s the Lovonus way. Even in turbulent times, microfinance is a lifeline. At Lovonus, we’re not just navigating change—we’re shaping the future of financial empowerment in Nigeria.”
Ayibiowu further emphasised the critical role of microfinance in national development. With over 900 licensed microfinance banks as of 2024, the sector provides financial services to millions of individuals and microenterprises through a range of products, including savings, microloans, and business development services.
“The industry has grown rapidly, not just in numbers, but in service offerings and digital adoption,” he said. “It is a key driver of grassroots economic development, job creation, and poverty alleviation.”
Nevertheless, he acknowledged the industry’s ongoing structural and economic challenges, many of which have been worsened by inflation and shifting economic policies. He concluded by emphasising the need for resilience and continuous innovation to ensure the sector’s long-term sustainability.
