How Nigeria’s banks can beat the fintech threat

As Nigeria's economy continues to evolve, the country's traditional banking industry is facing a significant challenge from the fast-growing fintech sector. With a large percentage of the population still excluded from formal banking services, there is a growing need for innovative solutions to bridge the gap. In a recent interview with CNBC Africa, Robert Aderinmola, Consumer Insight and Analytics at Diamond Bank, shared his thoughts on how traditional banks in Nigeria can beat the fintech threat and stay relevant in the changing landscape. Mr. Aderinmola highlighted the rapid evolution of fintech in Nigeria, citing statistics that underscore the potential for disruption in the industry. With a large segment of the population under the age of 35 and a significant number of mobile phone users, the stage is set for fintech to drive financial inclusion and reshape the way banking is done in the country. One key point raised during the interview was the importance of collaboration between banks and fintech providers. Mr. Aderinmola emphasized the need for traditional banks to work closely with fintech companies to create value for customers and stimulate economic growth. He noted that Diamond Bank has already made significant strides in this area, with initiatives such as agency banking and financial inclusion driving the adoption of digital banking services. Another key theme discussed was the potential for disruption in wealth management and lending in the coming years. Mr. Aderinmola highlighted the need for banks and fintech organizations to collaborate on innovative solutions that leverage artificial intelligence and big data analytics to meet customer demands for personalized banking services. He stressed that by working together, banks and fintech companies can create a win-win situation that benefits both parties. Looking ahead, Mr. Aderinmola predicted that the next wave of fintech collaboration in Nigeria will focus on initiatives in wealth management and investment services. With disruptions expected in these areas, he emphasized the importance of banks partnering with fintech companies to develop innovative solutions that meet the evolving needs of customers. In conclusion, the fintech landscape in Nigeria is rapidly evolving, presenting both challenges and opportunities for traditional banks. By embracing collaboration, innovation, and a customer-centric approach, banks can position themselves to not only survive but thrive in the face of the fintech threat. As the industry continues to evolve, the key to success will lie in the ability to adapt quickly and meet the changing demands of a digitally-driven economy.