Post Image
  With only 30% of rural Nigeria boasting access to internet-enabled smartphones and a low level of digital literacy among rural residents, Nigeria’s rural heartland is not part of Nigeria’s FinTech revolution. Despite making up 70% of Nigeria’s population, the people living in rural areas are the most underserved when it comes to accessing FinTech services. There are a plethora of opportunities in rural areas. For example, an average poultry farmer in a village in southeastern Nigeria makes an annual income of N800,000 to N1,000,000. Some engage in oil exportation to major cities and surrounding countries in West Africa. However, these groups of people lose their money to poor financial literacy or at worst, fail to access loans from traditional institutions. With banks far away from rural areas, rural dwellers find it difficult to access adequate financial services. There are cases where groups of farmers who contribute money for savings and redistribution have their savings stolen by unscrupulous agents. This and many more can be explored by trusted FinTechs to step in and fill the gap. In this article, I develop a series of strategies that FinTechs can use to make inroads into rural areas and serve the underserved. 
Read more about Fintech
  1. Create User-Friendly Apps
Most rural dwellers are not tech-savvy, so it will be counterproductive if your software solution is complex. It is expedient that your solution is UX and UI user-friendly, and can make users comfortable and not apprehensive or lost.
  1. Create Apps That Have Options For Local Language
It is also crucial that apps are in the indigenous languages. When the user interface is communicated in the language of the people, it can build trust and as well, eliminate the language barrier.
  1. Develop Apps That Are Custom-made To Suit Financial Behaviour And Needs
Lending, insurance, and savings are the most prevailing needs for most rural dwellers in Nigeria. On the aspect of lending, most rural dwellers are either into farming, industry or trade. However, there are few professionals. But the problem of access to credit facilities for business is a gap that FinTechs can fit into. Most dwellers have large expanse of lands, but do not have the financial power to engage in large scale farming. This is where lending platforms can step in. In the aspect of saving and insurance, rural dwellers have pointed out that illness and other accidents affect their savings. FinTechs can add a microinsurance incentive, offering premium-free coverage against accident and critical illness, that is tied to consistent savings behaviour. They can develop a product roadmap that can cover health insurance. The concept of Esusu and Ajo – An informal community-based savings scheme – can be explored and digitised by FinTechs.
Sign up to the Connect Nigeria daily newsletter
  1. Collaborate With Local Leaders For Effective Widespread Adoption
To win the trust of rural dwellers who are often sceptical about new models of financial services, it is very pivotal to collaborate with local leaders such as local government chairmen, indigenous leaders, union leaders, market leaders and so on. Ensure that these leaders are well-informed, and will be able to communicate effectively to the rural population.
  1. Create FinTech That Provides Services To Local Occupation And Production
The rural areas of Nigeria are filled with opportunities. The major occupations in rural Nigeria are agriculture, manufacturing and trade. These occupations could be expanded, benefitting both financial service providers and the people themselves. For instance, this study acknowledges that FinTech providers have great potential to help FSPs overcome the challenges they face in supporting smallholder farmers, by lowering transaction costs, improving data collection and contributing to better financial literacy levels through tailored information and support.
  1. Create A Support Group Or Customer-Facing Agents
To effectively operate in rural areas, FinTechs must ensure that rural users are effectively supported through creating a support desk or customer-facing agents. This will ensure that customers’ complaints, suggestions and recommendations are accurately handled. Featured image source: E-Settlement
Got a suggestion? Contact us: editor@connectnigeria.com
You might also like:
This article was first published on 9th March 2022

nnaemeka-emmanuel

Nnaemeka is an academic scholar with a degree in History and International Studies from the University of Nigeria, Nsukka. He is also a creative writer, content creator, storyteller, and social analyst.

Comments (89)

89 thoughts on “How FinTechs Can Effectively Serve Rural Areas In Nigeria”

Leave a Reply

Your email address will not be published. Required fields are marked *