Loan And Investment Apps Are In High Demand In Nigeria

Online IT Certificate Courses Loan and investment apps are in high demand in Nigeria. 

Loan and investment apps are in high demand in Nigeria 

The phenomenal growth in Nigeria's fintech sector extends beyond the inflow of funds. According to reports, the country installed the most fintech applications in Africa last year.

This is according to AppsFlyer's new State of Finance App Marketing Report.

According to the report, fintech app installation increased by 160 percent from the second quarter of 2020 levels.

A breakdown reveals that loans applications accounted for 43.3 percent of all applications. Financial services grew at a rate of 35.6 percent, while investment apps grew at a rate of just 20.3 percent.

However, the growth was not unique to Nigeria, as other countries in the Sub-Saharan African region also experienced rapid growth. Kenya saw a near 100 percent increase in fintech app installations during the same period, while South Africa saw a 52 percent increase. 

 

The digital revolution fueled growth

The massive increase in fintech app downloads has been attributed in large part to the digital acceleration triggered by the COVID-19 pandemic.

Financial activity, which initially declined at the start of the pandemic, grew into a boom in H2 2020 and continued to bear fruit well into the first quarter of 2021.

In particular, Nigeria's large unbanked population (56% ) and stringent regulatory environment have compelled a large number of people to use apps to obtain loans and explore other financial services

 

Marketing is on the rise

Another significant factor driving the boom is the fintech industry's growth in marketing. Since the start of COVID lockdowns in Q2 2020, the number of finance apps investing in marketing has increased significantly across all regions.

Nigeria's market spending increased the most in Sub-Saharan Africa, by a whopping 150 percent since the second quarter of 2020. The country's Cost Per Install (CPI) increased 70% since Q2 2020, resulting in an increase in spending, particularly in Q1 2021, when budgets nearly tripled.

South Africa, meanwhile, experienced a significant increase of approximately 33% since the first quarter of 2020. Kenya, on the other hand, has been abandoned by investors, with spending falling by more than 80% in the last two years.

According to the report, Sub-Sahara Africa's high spending was fueled by fierce competition as apps used aggressive marketing tactics.

 

Increased inflow of capital

Over the last two years, the fintech sector has led the region in terms of venture capital investment. The staggering figures frequently reported indicate that these fintech solutions are reaching a sizable portion of the region's population.

These enticing figures act as an aphrodisiac, luring additional investors to the region. Paystack and Flutterwave are perfect examples of companies that have already shone a light on the market.

 

The birth of loan and investment apps

Installation to registration conversion rates is impressive across categories in Sub-Saharan Africa, but loan apps have the highest.

According to the report, loan apps generate 69% of conversation, compared to 25% for investment apps and 19% for financial services.

This demonstrates that Nigerians are more interested in loan and investment apps than in other forms of fintech. This is demonstrated by the popularity of loan applications such as Branch, Carbon, and OPay; investment applications such as PiggyVest, Thrive Agric, and Cowrywise; and cryptocurrency investment applications such as Yellow Card, Bundle, and BuyCoins.

The report confirms, in general, analyst predictions that fintech adoption is increasing in the region. Despite the relatively lengthy registration process, 25%–35% of users who install finance apps across the region demonstrated a strong intent to engage in financial activity by completing the registration.

The demand for finance-related applications is at an all-time high

The demand for finance apps is exploding, not just in Africa, but throughout the world. 29 of the top 40 finance markets (as measured by app installs) experienced year-over-year growth of at least 20%. However, developing markets accounted for the majority of installs.

The average number of downloads in developing markets was 70% higher than in developed markets, with India, Brazil, and Indonesia accounting for nearly half of all downloads globally.

As with Africa, the majority of this market growth was fueled by Covid and increased consumer spending. According to the report, global remarketing conversions more than tripled between Q1 2020 and Q1 2021, with total spend reaching no less than $1.2 billion in Q1.

 

In Conclusion

The pandemic of COVID-19 accelerated the global adoption of financial technology, particularly in emerging markets.

Numerous finance apps have aided in the connectivity of millions of consumers and businesses.

The rapid growth in Q1 2021 alone indicates that the trend is likely to continue, and African fintechs' ability to grow their customer base will depend on their ability to market their apps effectively.

However, in countries such as Nigeria, where regulations change frequently, it is critical for FinTechs to be adaptable and innovative in order to stay ahead of the curve.

 

Courses and Certification

Fintech - Financial Technology Course and Certificate

E-Accounting Course and Certificate

QuickBooks Course and Certificate

SAGE 50 Course and Certificate

Peachtree Course and Certificate

Advanced Digital Marketing Course and Certificate

Full List Of IT Professional Courses And Technical Certification Courses Online

IT Professional Training and Technical Certification Online

90% Scholarship Offer!!

The Scholarship offer is a discount program to take our Course Programs and Certification valued at $70 USD for a reduced fee of $7 USD. - Offer Closes Soon!!

Copyrights © 2021. SIIT - Scholars International Institute of Technology is a subsidiary of Scholars Global Tech. All Rights Reserved.