The Nigerian Fintech Week event opening was made by Tolu who urged the participants to network. She also joked about Fintech Nigeria receiving 10% from the result of the networking session. Without much ado, she introduced Mayowa Kuyoro, who is the keynote opening speaker.
Nigerian Fintech Week: Keynote Opening
Mayowa Kuyoro – First speaker – Partner at McKinsey based outside Lagos. She will be speaking on “Fintech in Nigeria – The end of the beginning.”
A report was done some months ago by McKinsey and this aim to put together everything going on in the Fintech world (sizing, activities).
Giving the reason for the name, she said “mere looking at the revenue of Fintechs in Africa, Nigeria is about 3% of the total service revenue. This same number is seen in developing markets such as US and UK”
Giving the second reason, she said,
“When you look at the maturity circle and the activities where fintech across Africa and again in Nigeria are participating in, we sought to build a lot of fundamentals reels that help to drive fintech activity. Now we are seeing more and more fintech coming in with more complicated financial services.”
The third reason was the result of the following:
- Challenge of skills – How do you know you are building a business that has both the number of customers with also the revenue growth to bond most of the investment going on in there?
- The second is navigating an uncertain framework.
- Thirdly, cooperate governance and a robust sort of system around the ideas that we are generating.
- Address talent questions if we are to build a sustainable business across the continent.
Read Also: What to Expect From The Nigeria Fintech Week 2022
Digital Infrastructure Still Developing
The predominant activities for fintech in Nigeria and Africa are wallets, bitcoins, and so on. The part lacking activities or not making headway are the wealth investment schemes, peer-peer payments, bills payment, and so on.
The good news however is when you think about the fundamentals and reels to power whatever more advanced financial services, we are quietly well penetrated in Nigeria and across the continent.
The historical growth has been growing above GDP and will go to grow above it. The reason is that we have a very young population. The early adopters are the bulk of the population and they will continue to use the products.
The investment flow that has come across Africa also contributed to the growth. Nigeria alone contributes up to 45% of investment into the fintech industry between 2015 and 2022. With the ideas coming up, we feel there is a reason for hope and optimism.
Fintech/Verticals Growth
- A lot of wallets will be coming up in the future with a lot of approval or licensing with PSP bags e.t.c.
- The second is whittle lending. If you look at the market where that has been sort of relatively democratize, we see high growth in whittle lending.
- Remittances: This is where markets that collect remittances flow. Unfortunately, the last-mile delivery has not been solved. Companies are coming up in that space and margins are relatively high.
Concluding Part
She concluded by giving the ways to unlock the true potential of Fintech Across Africa:
Regulators: regulators have a role to play as they encourage innovation and make sure customers are protected.
For Building talents, she said the right way should be created to ensure the talents being trained to stay. According to her, talents are fungible.
Partnership: How do we come together to build a sustainable startup? For the fintech industry, about 40% do not have access to financial services. This requires us to come together to solve the problem.
Finally Investment: We need investment to ensure we are building the right and sustainable business.
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