EFInA Releases FinTech Landscape and Impact Assessment Study 2020 Report

Wednesday, September 23, 2020 / 06:01PM /by EFInA / Header Image Credit: EFInA

Executive Summary

Global FinTech growth is driven by a combination offactors -increased funding, modernized payment infrastructure, the rise of techplayers and the sharing of data and technology. Threat of big techs andchallenging B2C economics in developed markets are contributing to a gradualshift in FinTech models to B2B and increased collaboration between banks andFinTech.

The Nigerian FinTech landscape is attractive andgrowing, with a concentration in Lagos, focused on banked customers andproviding payment and lending solutions. However, dynamics are changing -newpockets of growth are emerging driven by changes in consumer behavior, fundingsources, and new business models; leading to an extension of Financial Servicesto unserved and underserved populations

Despite the increased activity in the FinTech sectorin Nigeria and the positive multiplier effect, economic impact to date is low,with FinTech activity accounting for only ~1.25%1of retail banking revenues in2019. A concerted effort by all stakeholders to address structural challengesis required to capture a greater share of Nigeria's $50bn2Digital FinancialServices opportunity, and mitigate emerging risks as the sector evolves. Thiscould help accelerate the ambition to include more individuals into the formalfinancial system

There are a number of actions that could enhanceNigeria's Digital Financial Services landscape -leading to a higher number ofpeople included into the financial system. However five of them, if wellexecuted could yield the biggest impact -Innovation enablement, Digital ID,Credit infrastructure, Digital infrastructure and Technology talent pipeline.

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