Nigeria’s fintechs built payments. Now they’re becoming banks.
- Paystack acquired Ladder Microfinance Bank in January, marking its entry into the banking sector.
- Flutterwave secured a national MFB license in April through its acquisition of open banking startup Mono.
- Sycamore aims to build a deposit base of over ₦40 billion after acquiring an MFB.
The transition of fintechs into microfinance banks represents a significant evolution in the financial landscape of Nigeria. This shift not only enhances their service offerings but also aligns with regulatory expectations to support the real economy. However, the success of these fintechs will depend on their ability to manage risks associated with lending while maintaining customer trust.
