Fintech companies in Nigeria, particularly those looking to attract capital, have been advised by experts to put profitability first in their business plans before contacting investors for investment.
As they pointed out, the days of merely submitting ideas to potential sponsors in the hopes of receiving cash are long gone. “Building Trust in the Digital Age: Balancing Performance with Compliance” was the theme of FITC’s two-day TechnNovation FINTECH Conference, where the experts spoke.
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In his presentation at the conference, the Chief Executive Officer of Clane, a mobile payment company, Mr. Dipo Alabede, said investors are now looking for profitability prospects before committing their funds to any startup.
Innovative Approaches to Fintech Funding Diversity
Alabede suggested that fintechs diversify their funding sources and create a company with room for profitability. They should consider a mix of debt financing, partnerships, venture capital and private equity.
The MD/CEO of Digital Jewels Limited, Adedoyin Odunfa, while noting the crucial role of fintech in Nigeria’s economic development and financial inclusion, said that Nigerian fintechs would also need to balance innovation with compliance, advocating for a customer-centric approach and diverse teams.
Adedoyin added that having committed individuals, robust processes, scalable solutions, and effective collaboration are critical success factors that would help the fintechs scale and attract investments.
Fintech’s Future Through Collaboration and AI
The CEO of E-Settlement, Olaoluwa Awojoodu, also spoke, emphasising the necessity for Nigerian Fintechs to embrace cooperation in the face of competition and the revolutionary potential of AI.
He emphasised the need for Nigeria to stay up with the rapid breakthroughs in AI globally. Like a forest where businesses fight for resources but can gain from covert cooperation, Olaoluwa compared the industry to that.
Using tools like the Bank Verification Number (BVN), he promoted unified platforms to fight fraud and called for strategic cooperation to overcome obstacles and take advantage of opportunities in the rapidly changing digital landscape.
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The conference’s organiser and MD/CEO, Chizor Malize, highlighted the revolutionary influence of fintech on the global financial services sector in her speech.
She highlighted the achievements of businesses like M-Pesa, Flutterwave, and Interswitch as proof of Africa’s capacity to promote digital innovation-driven financial inclusion and economic expansion.
Malize stressed the importance of FITC’s role in providing innovative knowledge solutions and capacity-building programs to enhance trust and compliance in the digital age.