To further promote financial inclusion in Nigeria, Enhancing Financial Innovation and Access (EFInA) a financial development organization funded by DFID and Bill and Melinda Gates Foundation, has Highlighted significant Fintech opportunities that could redefine the access to financial service landscape in the country.
The untapped opportunity Fintechs were exposed to is the 41.6 percent of the population that are currently financially excluded and have no access to formal and informal financial service even though they have access to mobile phones.
Segun Akerele, EFInA’s Board Chair, said the company is willing to support them in tapping into the opportunity through its Research, Advocacy, Innovation Grant and Capacity.
EFInA recently organized a FinTech Breakfast forum in Lagos, where stakeholders across the financial services sector, discussed extensively on issues around access to financial services in Nigeria.
The FinTechs that attended the forum generally agreed that there was a need for constant dialogue between all stakeholders so that the current obstacles to financial inclusion can be removed and the FinTechs can play an important role in the development and promotion of financial inclusion in Nigeria.
Through its Innovation Fund, EFInA targets the economically deprived population. Launched in 2009, the fund shares risks with Financial Service Providers (FSPs) by providing grant subsidies through the Technical Assistance Grant and the Innovation Grant to the amount of $250,000 and $2,000,000 respectively. The focus areas include agent networks, electronic payment, financial inclusive products and services especially across Northern Nigeria, women and financial literacy projects.
Akerele said that the “essence of the forum is to request information from FinTechs on how EFInA can stimulate innovation targeted at the financially excluded through its grants, advocacy, research and capacity building” she addressed over 40 different FinTech companies, regulators and digital financial service consultants that attended the forum. Akerele also appealed to the forum to see the financially excluded as partners and an asset to boost economic growth and increase GDP.
Presenting on “Potentials For Driving Financial Inclusion Uptake through FinTechs”, Folasade Agbejule, EFInA’s Programme Specialists – Payments, stated that “According to the EFInA Access to financials survey of 2016 which covers about 23,000 respondents across Nigeria, 41.6 percent of adults are financially excluded even though they have access to mobile phones. Also, these adults do not have access to formal and informal financial services. The digital financial service system has a role to play in this situation to reach low income earners and people in the rural areas.
Topsy Kola Oyeneyin, Associate Principal at Mckinsey and Company during herpresentation on “Opportunities in Digital Financial Inclusion”, stated that “thereis huge potential for digital involvement in Nigeria’s financial services but thiscan only be attained if the three required building blocks are put in place. These building blocks are: widespread digital infrastructure, dynamic financial services market and the development of products people prefer to existing alternatives”.
The event involved a panel session where panellists including Segun Akerele, Tunde Kehinde; Co-Founder Lidya, Ngozi Dozie; Co-founder Paylater/OneFi, Jude Njugo; Beyond Credit CEO and NonnyMerenu; Unilever Sustainability Manager discussed issues relating to: the current state of financial inclusion in Nigeria, the FinTech landscape, the role of the Central Bank of Nigeria in driving financial inclusion in Nigeria as well as the barriers and challenges of the low income population to access financial services.
The panel, moderated by Tunji Elesho; CcHub Growth Capital fund and Suzanne Adeoye; EFInA Grants Manager identified the regulatory landscape, the availability of credible data as very important factors in the development of digital financial services.
Some of the FinTechs that attended the forum include Flutterwave, Lidya, Paga, International Finance Corporation, Paylater, E-settlement, Sanwo, OyaPay, Spacpointe, Amplify, Afarapartners, Capricon Digi, Cassava and many others.
