Why we can expect to see more Microfinance banks in 2023
Digital lenders become MFBs, Stears

In recent conversations with multiple Fintech operators, it’s clear that everyone wants to know: what does the future hold for digital lenders in Nigeria?

It’s not hard to see why there is so much interest. Digital lenders have grown in ubiquity, particularly within the Nigerian tech ecosystem. Digital lending is also unlocking new innovative product offerings in adjacent sectors like agriculture, health, consumer goods etc. Take for instance, Hello Tractor, which raised $1 million in 2022, to help farmers finance the purchase of new tractors. 

 

Key takeaways:

  1. When it comes to giving out loans, Nigerian banks have shown a low-risk appetite, particularly neglecting individuals and small businesses. 

  2. Digital lenders are focused on closing these financing gaps but still have to figure out how to do so profitably. 

  3. Becoming a microfinance bank allows lenders to build a more sustainable business model, but it has limitations.

​​

In trying to understand what

This story is only available to Premium subscribers Subscribe or sign in to finish reading

Not ready to subscribe? Register to read a selection of free stories

Nchedolisa Akuma

Nchedolisa Akuma

Read Latest

Consumer Goods Transaction Brief: Mediterrania Capital Partners Exits Morocco’s Dislog Group

PREMIUM - 25 APR 2025

Consumer Goods Transaction Brief: South African retail giant SPAR secures $240M syndicated Loan from Investec, others

PREMIUM - 24 APR 2025

Financial Services Transaction Brief: Fintech PayTic closes $4.4M Seed Extension to accelerate Africa expansion

PREMIUM - 23 APR 2025

Limited Partner Profile: Blue Earth Capital

PREMIUM - 23 APR 2025

Download our mobile app for a more immersive reading experience

Scan QR code
mobile download