Research into Mobile Money in Nigeria

The research company, Kasi Insights issued a survey in March (see: www.kasiinsight.com) on Fintech services in Nigeria, most of which are delivered by mobile. On the supply side, all banks (21) now have a Fintech offer, even if it is only accessing bank accounts online. 47% of respondents had seen or heard about fintech services but only 31% were currently using them. Most of the users were in the higher income categories. Unlike M-Pesa in Kenya, Fintech services in Nigeria must still provide financial inclusion for lower-income customers.

Of the respondents who currently use Fintech products or services, 56% have a combined monthly household income between $501 to $900, 27% between $901 to $1,800. Of these respondents, 42% were salaried employees while 33% were self-employed or contractors. This demonstrates that the current users of Fintech services are from the upper/middle class and economically active individuals. For the services offered by traditional banks, they were used by 57% of respondents reflecting the higher income levels found in the sample. However, there was another 33% who were aware of the products and services but were not yet using them. Of the respondents who currently use traditional banks’ products or services, 36% have a combined monthly household income between $501 to $900, followed by 30% with household income below $500. Of these respondents, 56% were salaried employees and 16% were self-employed or contractors.

In Nigeria, on the start-up side, the investor interest in Fintech created 114 Fintech start-ups. The report found that the field of Fintech start-ups is crowded, and they have yet to demonstrate that: a) that they have yet made much of a dent in the traditional bank or financial services customer base; or b) that they deliver financial inclusion.