Disruptive influence of Fintech in Nigeria's financial services

The financial services sector in Nigeria is currently experiencing a wave of innovation and disruptive technology, with Fintech solutions playing a key role in reshaping the industry. Boye Ademola, Partner and Head of Fintech at KPMG Nigeria, recently discussed the latest trends in Fintech disruption during an interview with CNBC Africa. Ademola highlighted the significant opportunities for innovation in the sector, particularly in areas such as payments, lending, insurance, and remittances. He mentioned that Nigeria's status as the number one remittance destination in Africa, with $21 billion in annual remittances, presents challenges that Fintechs are actively looking to address through blockchain technology and other innovative solutions. According to Ademola, the next wave of Fintech disruption in Nigeria will focus on enhancing financial inclusion, particularly targeting the vast retail market that remains underserved. With an estimated 150 million mobile phones in the country and less than 50 million people registered in the banking system, there is a significant opportunity to leverage Fintech solutions to broaden access to financial services. Ademola also emphasized the role of Fintech in driving economic activities in sectors like agriculture and rural investments, where traditional banking services have struggled to reach. While discussing the regulatory environment, Ademola acknowledged the need for more robust regulations that can support and enable the growth of the Fintech sector. He highlighted the success stories of other Fintech hubs around the world and stressed the importance of aligning Nigeria's regulatory framework with global best practices. Ademola emphasized that with the right regulatory support, the Fintech sector in Nigeria has the potential to attract significant investments and drive further innovation. In addition, Ademola addressed the debate surrounding telco-led mobile money growth in East Africa and the role of regulation in shaping the industry. He argued that while telcos have a large customer base that could drive digital financial services, the Fintech proposition goes beyond existing models and offers a more comprehensive approach to financial inclusion and efficiency. By leveraging technologies like USSD for transactions and account opening, Fintechs are bridging the gap between traditional banking services and digital solutions. Overall, Ademola's insights shed light on the transformative impact of Fintech innovation in Nigeria's financial services sector. As the industry continues to evolve, Fintech companies are poised to play a leading role in driving financial inclusion, improving efficiency, and revolutionizing the way financial services are delivered to consumers across the country.