Post Image
  There is a new wave of startup operations called agri-fintech. Most developing countries such as Brazil, India, Spain, and Indonesia, among others, where agriculture makes up the majority of their profession, are experiencing the rise of agro-fintech. Agri-fintech is a type of startup that helps farmers gain access to credit and loan facilities and manage their finances.
Read more about Fintech
A country like Nigeria is well known for its huge agricultural production. More than 70% of the population is engaged in agriculture. In addition, in the past agriculture contributed more than 60% of the nation’s GDP, but today it represents barely 10%. This informs us that there are plenty of opportunities for FinTech startups to look toward the farming population. Despite the apparent opportunities in agriculture, many large and small farmers in Nigeria face many challenges, including poor access to basic services and inadequate capital. Studies have shown that farmers in Nigeria find it difficult to engage in large-scale farming because there is little financial inclusion in these areas. One study called this set of farmers “the unbanked.” Worse yet, Michael Ogundare, CEO of Crop2Cash, noted that due to the fragmentation of agricultural value chains, lack of tracking data, and payment channels, banks have been shying away from lending farmers loans, and only 7% of over 38 million farmers in Nigeria have access to credit. As stated above, countries like India, China, and Brazil have been able to improve their agricultural sector through the provisions of agri-fintech. In this article, I discuss how FinTech founders can develop agri-fintech that can get more farmers to use their platforms.
  • Design Your Customer Pool

Designing the group of farmers you want to serve is the first step towards developing an agri-fintech that can fuel the growth of adopters.
Sign up for the Connect Nigeria daily newsletter
When designing your group, you should establish how your startup would operate and the specific people you want to serve. This is when you design and develop an agri-fintech that is tailored to specific types of farmers. Your agri-fintech can be binary or multipurpose. For example, you may choose to design your startup to serve grain farmers only. Additionally, when you design your customer pool, you can, with the use of your digital sales enablement platform, help retailers, grain companies, input manufacturers, and farmers manage their business processes efficiently.
  • Develop A Marketplace Competence

Secondly, another way to get more grain farmers, for instance, on your agri-fintech platform is to help farmers gain access to ready markets. Successful agri-fintechs provide financing via a full-stack B2B grain marketplace. With the use of algorithms not only can you help farmers and grain companies find the best match of supply and demand, but also you can help in the areas of quality control of the grain, know-your-customer documentation, logistics, and financing of the transactions. 
  • Provide Alternatives To Financing

Developing an agri-fintech is not all about providing loans and credit facilities for farmers. Studies have shown that providing only vendor financing can put a strain on your startup.
Register to attend the Connect Nigeria Business Mixer
Successful agri-fintechs provide financing along with agricultural inputs. To build a successful agri-fintech that will get more farmers on board, you must provide an alternative to vendor financing by providing agro-dealers, and small and mid-sized farmers with seedlings, fertilizers, and even machinery.
  • Invest In Machine Learning Facilities

Leading agri-fintech startups in developing countries employ the use of artificial intelligence and machine learning-based risk scoring models that are based on agricultural data and credit history to assess the credit worthiness of farmers. With these models, Agri-fintechs can arm themselves with farmers’ data and provide them with agricultural inputs with fairer credit conditions and the opportunity to pay at harvest. Furthermore, the subscription of your agri-fintech startup must be automatic so that your company can revert with instant approval. This will also help in the perfect integration of the financing solution together with the sale of agricultural inputs. Additionally, with machine learning models, farmers are also informed in advance of the payment amount due at harvest, with no origination fees, service fees, or deferred payment fees. With more and more data available on agriculture and farms to determine risk and train their algorithms, Agri-fintechs can grow tremendously. Featured Image Source: EOS Intelligence
Got a suggestion? Contact us: editor@connectnigeria.com  

You might also like:
This article was first published on 14th July 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 (8)

8 thoughts on “How Nigerian FinTech Startups Can Get More Agro-farmers To Sign Up On Their Platforms”


  • What a material of un-ambiguity and preserveness
    of valuable know-how about unexpected emotions.


  • Hiya very cool website!! Guy .. Beautiful ..
    Amazing .. I will bookmark your web site and take the feeds additionally?
    I’m happy to seek out so many useful information right here in the put
    up, we need work out extra strategies in this
    regard, thanks for sharing. . . . . .


  • WOW just what I was looking for. Came here by searching for
    casino online


  • I used to be able to find good info from your blog
    posts.


  • Hi there, this weekend is good in favor of me, since this
    moment i am reading this wonderful informative piece of writing here at my house.


  • You need to be a part of a contest for one of the best sites
    online. I most certainly will highly recommend this blog!


  • You really make it seem really easy along with your presentation however I in finding this topic to be really one thing that I think I might
    never understand. It sort of feels too complicated and extremely large for me.
    I am looking ahead for your subsequent post, I’ll attempt to get
    the grasp of it!


  • Today, I went to the beachfront with my kids. I found a sea shell and gave it
    to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She placed the shell to
    her ear and screamed. There was a hermit crab inside and it pinched her ear.
    She never wants to go back! LoL I know this is completely off topic but I had to tell someone!

Leave a Reply

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