Here are the top 5 Nigerian fintech companies in 2021
Here are the top 5 Nigerian fintech companies in 2021
Despite the fact that the twentieth century was not the first time that technology and finance came together, the term "Fintech" is now commonly used to describe this intersection.
Combined finance and technology, fintech is a relatively new field that has emerged as a result of rapid technological advancements as well as the rise of an entrepreneurial class that is particularly interested in understanding money and how to distribute it more efficiently.
Fintech pioneers identified flaws in traditional banking, resulting in the development of a rapidly expanding industry that caters to the specific needs of smaller banking customers and customers in emerging markets.
It is the desire to improve customer experience and address numerous borrower pain points that is driving innovation and opportunity in this market. After a period of disruption, fintech has transformed into an enabling partner in a new era of financial inclusion.
When combined with other initiatives aimed at increasing access to financial products and services for underserved communities in Africa, the push toward cashless societies and other initiatives has created an industry bursting at the seams with opportunities, with a slew of new players hoping to profit while also making an impact.
Some of the most innovative fintech companies in Nigeria will be established by the year 2021.
1. Kuda
Innovation is all about striking a delicate balance between human desires, available technology, and the monetary or commercial value of the product or service being developed.
When it comes to innovation in the Nigerian fintech industry, Kuda Microfinance Bank was one of the companies that made a significant contribution in the year 2021.
A full-service digital-only financial institution with a banking license, the bank is dubbed "the bank of the free" and operates under that moniker. With the help of the fintech solution, customers will be able to gain direct access to banking services via their smartphones and tablets.
Furthermore, clever features that assist customers in avoiding exorbitant bank fees, spending wisely, and saving more may be available to them.
Kudimoney was a simple finance platform that offered standard fintech products before rebranding as Kuda, which has grown to become a household name in the fintech industry since its transformation into Kuda.
After receiving a microfinance banking license from the Central Bank of Nigeria (CBN), the company was able to transform into Kuda, a full-service digital neo-bank.
Kuda's has been able to complete funding rounds so quickly in its first few months of operation because of the digital bank's extraordinary early growth.
The company announced that it had 650,000 registered customers when it went public with its initial public offering (IPO) earlier this year. Kuda now has more than 1.4 million registered users, which is more than double the number of users it had in March of this year.
2. Bamboo
With the influx of new money and the emergence of several new entrepreneurs, investors and venture capitalists, Nigeria's financial technology industry has emerged as Africa's brightest new star.
Bamboo is a fintech solution that has made tremendous strides in the last few years and will continue to do so in 2021, according to the Financial Technology Association.
It provides users with free access to over 3,000 stocks that are traded on the Nigerian and US stock exchanges, all from the comfort of their mobile phone or personal computer.
Customer transactions on the New York Stock Exchange are subject to a 1.5 percent commission charged by the company, which has offices in Lagos and San Francisco, and is headquartered in Lagos. It also offers a variety of deposit fees that are dependent on the payment method that the user has chosen.
Bamboo also caters to corporate and institutional clients, including brokers and dealers, fund managers, and investment advisers, in addition to individual investors.
Investment and trading opportunities in over 3,500 equities listed on the New York Stock Exchange or in their respective local markets are currently available, according to the company. Nevertheless, the types of investments available to clients through the app are restricted.
Companies with a market capitalization of $1 billion or more are typically the only ones in which customers can place their money. At the moment, there is no trading in penny stocks, options, fixed income, or mutual funds available for purchase (excluding money market funds).
3. PiggyVest
The financial technology (fintech) industry is disrupting key financial services in order to bridge the gap between financial institutions and customers.
In 2018, Piggyvest acquired Savi.ng, a wealth management app that was founded in Nigeria. Since then, the company has expanded to provide fintech solutions that enable users to save through a variety of features such as automatic savings, fixed deposits, shared savings, and payroll deductions.
As a result of the acquisition, PiggyVest has been able to strengthen its position in wealth management, which is a rapidly growing segment of the fintech industry overall.
The company began as an online savings platform in Nigeria, where it is still based. The platform was created to allow people to effectively save money that they do not wish to withdraw from their bank accounts.
PiggyVest currently offers a variety of different savings options. Initially, users can start saving with as little as $1 per day and eventually limit their withdrawals to specific days of the week.
There are also additional features available through PiggyVest, such as the Flex Dollar, which allows users to save money while earning interest, as well as transfer money to any other PiggyVest member.
4. Patricia
In the field of financial technology, Patricia Technologies is without a doubt one of Africa's fastest-growing companies. It has spent the last three years, and particularly in the year 2021, establishing a reputable Bitcoin brand and establishing a reputation in the cryptocurrency community.
The company set out with the goal of creating a platform that would allow the region's growing number of cryptocurrency users to trade and conduct regular financial transactions in a safe and secure environment. Since then, the company has grown significantly.
Over the years, Patricia has grown from a small group of 500 clients to become Nigeria's leading digital asset trading platform. The company now has offices in Dubai, China, and Ghana, as well as a daily client base of more than 15,000.
The company's market success has been largely attributed to its goal of concentrating on practical solutions and developing user-centric services.
Its passion for developing simple but brilliant solutions is one of the reasons why the company has dominated the African Bitcoin market for so many years.
Following the introduction of the Patricia Debit Card, the Patricia Refill option was introduced, which allows users to pay utility bills and purchase airtime using Bitcoin.
With little time, Patricia Technologies has established itself as a pioneer in the cryptocurrency industry, offering previously unheard-of crypto-based services to Nigerian customers in an area that is largely unknown but has the potential to be extremely profitable.
The company's desire to be the first in whatever it does is undeniable, as is its desire to be the best. Patricia's desire to make it simple to incorporate cryptocurrency use into everyday life is at the heart of every creation she creates.
5. Opay
Over time, the banking system in Nigeria has improved. Although there are numerous gaps to be filled, there is a significant opportunity for fintech players to capitalize on these.
Hundreds of new financial technology (fintech) companies have sprung up in Nigeria, promising universal financial inclusion but ultimately catering only to those who are financially and technologically literate.
When compared to these other fintech companies, OPay stands out because it has carefully constructed its businesses to promote financial inclusion both online and off the internet.
Payments can be made to creditors, money can be transferred to other financial institutions, loans can be requested, messages can be sent to other OPay users, and money can be saved through the use of OPay's super app.
OPay's mobile money business is thriving, with the company accounting for approximately 80% of all bank transactions among Nigerian mobile money providers, according to the company.
This means that OPay is used to transfer money to other bank accounts by a significantly greater number of people than other fintech apps that perform the same function.
A large part of OPay's competitive advantage in mobile money can be attributed to the company's aggressive promotion of its mobile wallet services, which are aimed at anyone who requires quick access to financial services.
OPay, on the other hand, has not only achieved high adoption rates for its online services, but it has also established an impressive POS agent network across the country of Nigeria.
