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Financial Inclusion: A love letter to 200 Nigerian fintechs

Nigeria. A beautiful African nation of over 200 million people. The largest economy on the African continent is valued at 432.3 billion USD. 45% (47 million adults) of the adult population in Nigeria have a bank account. However, only 3% (3.2 million) have access to credit and only 2% (2.1 million) have insurance. The main challenges, that fintechs are also focused on solving, are affordability, perception, speed, convenience and useful products.

There are over 200 fintechs currently active in Nigeria, building the rails for the rest of the 60 million people to access financial services and products. This has rapidly improved the rates of financial inclusion in the country, helping to lift millions out of poverty. Additionally, the much-maligned banks are rapidly increasing their pace of tech onboarding, launching USSD and app products used by large swathes of the population.

However, this presents unique challenges for the finance and tech ecosystems. How do you ensure that you serve these customers in the most effective way possible? How do you maximize the financial opportunity of each customer? How do you ensure that customers who use your platform are legitimate? How do you determine who to offer loans to and who to decline? How viable is it to continue locking off your organisation from the rest of the fintech ecosystem? 

Nigerian people love their tech ecosystem. The fintech revolution has been welcomed with open arms to Nigeria. Every month there are several stories of an app hitting 1 million users, raising millions of dollars, getting licensed by the government and being celebrated by the business community. The people are extremely appreciative of the access and control this revolution offers them. Maybe it's time the fintechs did the same to their customers.

Enter the CARMACHAIN alternative credit data marketplace. CARMACHAIN aims to truly democratise access to credit in Nigeria by connecting lenders with the data they need to make better-informed and timely lending decisions. We achieve this by connecting lenders with alternative data from multiple sources in real-time and on a need-to-know basis while also enabling fintech platforms to monetize their customer transaction data in an efficient and compliant manner.

For more information on how to leverage alternative credit data for your business, do contact us through femi@carmachain.com.