The global body of mobile operators, GSM Association (GSMA), has described the fintech ecosystem in Nigeria as the most active in Africa. The body in its 2020 Mobile Economy Report said that beyond basic remittances and bill payments solutions, mobile technology has been facilitating the rise of fintech start-ups looking to plug the gaps in financial services in Africa.
According to the report,
“Nigeria has one of the most active fintech markets across the entire region of sub-Saharan Africa. Fintech opportunities in the country are significant and could potentially redefine the financial services landscape in the coming years,” GSMA declared in the report.
Highlighting some of the factors contributing to fintech growth in Nigeria, the body stated that in addition to a large, youthful population and increasing connectivity, the country has a huge financial inclusion gap, with access to complex financial products still limited to only a small proportion of the population.
“For example, only one per cent of the population holds any form of insurance, according to the Nigerian Insurers Association. Other countries in West Africa, notably Ghana and Senegal, are seeing similar trends in the fintech landscape.