Ac­cess, con­ve­nience big­gest con­trib­u­tors to fin­tech adop­tion in Nige­ria

Business a.m. - - TECHNOLOGY & INNOVATION -

AC­CESS AND CONVE NIENCE are the two most im­por­tant driv­ers of fin­tech adop­tion in Nige­ria, a re­port by McK­in­sey & Com­pany, the busi­ness ad­vi­sory and con­sult­ing firm has stated.

There is also a grow­ing trust in fin­tech be­cause of the par­tic­i­pa­tion of mo­bile net­work op­er­a­tors, the growth of agent net­works, trans­parency in pric­ing, cus­tomer ed­u­ca­tion, and ease of money with­drawal.

Ac­cord­ing to the re­search con­ducted by the firm, 54 per­cent of re­spon­dents noted that they have in­creased their use of fin­tech over the past six months and 57 per­cent of fin­tech users pointed to the fact that they use fin­tech be­cause it of­fers them ac­cess and con­ve­nience.

Cor­rob­o­rat­ing this claim, Elvis Ebikefe an avid user of fin­tech told Busi­ness A.M. “I use fin­tech be­cause it gives me con­ve­nience and the free­dom to carry out dif­fer­ent types of trans­ac­tions on one plat­form.”

McK­in­sey notes that the suc­cess of fin­tech op­er­a­tors like Opay, Quick­teller and the likes are point­ers to the fact that ac­cess and con­ve­nience is the ma­jor rea­son why Nige­ri­ans are adopt­ing fin­tech.

An­other trend wor­thy of men­tion is that re­fer­rals are play­ing a key role in the adop­tion of fin­tech, es­pe­cially for women. As Mck­in­sey states, “Our re­search in­di­cates that 55 per cent of cus­tomers first heard about a fin­tech prod­uct through a friend—and that num­ber rises for women. For ex­am­ple, in La­gos, 65 per cent of women heard about fin­tech through a friend.”

Moreso, La­gos is the city with the high­est adop­tion of fin­tech in Nige­ria with mid­dle-class and af­flu­ent peo­ple be­ing the big­gest de­mog­ra­phy of peo­ple to adopt fin­tech.

The McK­in­sey re­port also stated that La­gos is the big­gest city in terms of fin­tech adop­tion be­cause it is the city with the high­est pop­u­la­tion of ed­u­cated in­di­vid­u­als with ac­cess to a re­li­able dig­i­tal in­fra­struc­ture as well as a strong eco­nomic power.

The re­search, how­ever, notes that fin­tech is grow­ing rapidly in other parts of the south as well with sav­ings prod­ucts driv­ing the adop­tion in that part of the coun­try. It also notes that the USSD tech­nol­ogy and agents net­work are driv­ing the adop­tion of fin­tech.

Ad­di­tion­ally, the north­ern part of Nige­ria is the most un­de­vel­oped in terms of fin­tech adop­tion, but McK­in­sey notes that with the pres­ence of Opay as well as the growth of agents net­works, that might change soon.

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