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FinTech Wars: How New FinTechs In Nigeria Can Conquer With Ease

Emmanuel Nnaemeka

Fintech Financial technology Cryptocurrency investment and digital money. Business concept on virtual screen.

Nigeria has been described as Africa’s largest economy with the highest number of transactions done daily. As a big market, it is blessed with a thriving digital ecosystem that has led to the rise of FinTech startups. According to McKinsey, Nigeria’s banking industry is worth an estimated $9 billion. Apart from being the home to leading traditional banks, First Bank, United Bank for Africa, Guarantee Trust Bank Access Bank and Zenith Bank (FUGAS), it is also the home to five unicorns – Interswitch, Jumia, Flutterwave, OPay and Andela. Other leading FinTechs include Paystack, Kuda, Remita, Konga and so on.
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However, the healthy and robust ecosystem has also taken a toll on several players in the industry. The desire to have a larger market share has led to FinTech wars in Nigeria. For example, there seems to be a never-ending war between Jumia and Konga, Nigeria’s leading e-commerce platforms. On the other hand, Paystack and Flutterwave are battling it out. These are just a few examples of what it is like in the ecosystem. Despite the presence of over 200 stand-alone FinTechs in Nigeria who are meeting various financial needs of users ranging from payment to trading, to savings and lending among others, there are still millions of Nigerians who are underserved. A study reported that 60 per cent of the country is underserved despite the FinTech revolution ongoing. These underserved communities among other issues will serve as opportunities for new players who want to make their mark despite the FinTech wars ongoing. Purpose-Driven marketing is that type of strategy that focuses on empowering users and the world at large. It is about deploying emotional pitching as a form of marketing. Identified as marketing 3.0, a purpose-driven marketing strategy is all about championing a social cause. According to a 2015 study by Deloitte, 90 per cent of millennials would rather buy from a brand that is associated with a social cause than one that is not, while 60 per cent stated that they would prefer to work with organisations that are driven by a sense of purpose. On the other hand, a 2012 study by  Edelman’s GoodPurpose Study reported that 72 per cent of consumers would recommend a brand that supports a good cause over one that doesn’t. What does this mean for brands? It means that emotions are an integral part of modern-day marketing. Therefore, New FinTechs can choose to use one of the United Nations SDG Goals as its mission and vision statement. For instance, new FinTechs might choose SDG 5: Achieve gender equality and empower all women and girls or SDG 1: Ending Poverty. By pursuing one or more of various social causes they can connect on a deeper level with a larger audience, especially the younger generation.
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Another way to stand out in the face of FinTech wars and fierce competition is to collaborate with social media influencers who share the same values as you. Rather than spending huge amounts on celebrities and superstar musicians that do not share your values, the best PR or public image you can use for your FinTechs are renowned thought leaders like Emeka Nobis, and Fela Durotoye, Steve Harris, John Obidi, TriciaBiz and so many others. The idea behind using thought leaders who are also active users is that it gives your brand so much credibility due to their huge following. Their numerous followers can easily trust your brand. Empowering users is another way to stand out from the ongoing war. For instance, organizing essay competitions on mind-blowing and thoughtful topics on finance, economy, business and tech where young Nigerians are given the opportunity of winning a prize of money of let’s say $1,000 is a great way to go. Also, organizing tech fests where programmers and creators are rewarded with internships and scholarships will make all the difference.  You can also organize seed grants and funding of about $1,000 – $3,000 to fund female-owned SMEs and creators occasionally.  When it comes to standing out in the FinTech War, you must be ruthless with your marketing campaign. Standing tall in this competitive ecosystem is all about campaigning on every side – in both traditional and contemporary media. Your Facebook, Instagram, YouTube, Twitter, and Tiktok pages must be loud about your brand and what it stands for. Granting interviews on radio, TV, in magazines and newspapers must be at the heart of the process. Billboards, flyers, vehicles wrappers etc and other outdoor marketing must be considered. Featured Image Source: The Basis Point
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