Experts have emphasised the critical role of financial technology in expanding banking access in emerging markets, where millions remain excluded from traditional financial systems. With over 1.4 billion adults globally unbanked, fintech solutions are transforming financial inclusion by offering digital services that are faster, more accessible, and cost-effective.
A report by T. Rowe Price underscored this shift, stating, “Advances in fintech are working to broaden financial inclusion. Consumers are increasingly able to benefit from new innovations in the way financial service firms deliver products and services.”
Mobile money services have played a key role in this transformation, allowing users to send, receive, and store money using their phones without requiring a bank account. Kenya’s M-Pesa, a pioneer in mobile money, has set the standard for financial access, with mobile money adoption in Sub-Saharan Africa rising from 12 per cent in 2014 to 33 per cent by 2021. Other platforms, including Airtel Money and MTN Mobile Money, have further expanded financial access to women, small businesses, and rural communities.
In Nigeria, fintech companies are driving financial inclusion by offering digital banking, payment solutions, and access to credit. Group CEO of Moniepoint Inc., Tosin Eniolorunda, stressed the significance of fintech in economic development, stating, “Given the critical importance of financial inclusion to national development and building a sustainable economy, we are committed to increasing financial inclusion and driving the adoption of technology by underserved consumers in the country.”
Moniepoint has emerged as a major player, providing digital financial services to small and medium-sized enterprises (SMEs). By October 2024, the company had reached a $1 billion valuation after securing $110 million in funding. It now processes over 800 million transactions monthly, with total payment volumes exceeding $17 billion.
Other fintech firms are also making a significant impact. Shecluded, a financial platform designed to empower women, has introduced a credit model using alternative data sources such as mobile phone usage and utility payments to assess creditworthiness. This approach has helped over 50,000 women in Nigeria access loans, fostering entrepreneurship and economic growth.
Additionally, platforms like Paga and Branch International are revolutionising digital payments and lending. Paga, which serves over 19 million users, provides services such as money transfers, bill payments, and savings accounts. Branch International has disbursed more than $350 million in loans to over 4 million customers across Africa and Asia, supporting small businesses, education, and healthcare.
Despite fintech’s rapid expansion, challenges persist. Regulatory barriers, limited digital literacy, and gaps in infrastructure continue to hinder its full potential. However, governments are beginning to embrace fintech as a tool for economic empowerment. In Nigeria, the Central Bank has introduced new policies to support digital financial services, including licensing payment service banks.
T. Rowe Price Insights emphasised fintech’s growing importance, stating, “Inclusivity in financial services has become even more important for consumers in emerging markets during the coronavirus pandemic, and fintech firms are poised to capitalise.”
