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ARTICLE · 12 AUGUST 2020

Market Intelligence Thought Leadership Award Winner

How To Start A Microfinance Bank In Nigeria

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Lending Services constitute a substantial part of the Fintech ecosystem in Nigeria. In recent times, there has been a steady rise in the number of startups providing short-term loans...

NigeriaFinance and Banking
Seun Timi-Koleolu
Seun Timi-Koleolu
Olawale Atanda
Olawale Atanda

Lending Services constitute a substantial part of the Fintech ecosystem in Nigeria. In recent times, there has been a steady rise in the number of startups providing short-term loans to individuals with little or no collateral. Consequently, startups within the lending subsector are the fastest growing as they account for a quarter of all Fintech startups.

Startups engaged in lending services can be categorised into Microfinance Banks (MFBs), Moneylending Companies, Peer to Peer Lending Services (P2P), and Mortgage Institutions. These startups are guided by different operational structures and regulatory regimes. Their services vary based on the type of lending services they provide and the extent to which they are licensed to perform different services (such as accepting deposits and investment services) amongst other factors.

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