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But what if you are told that there are a lot of people who are underserved in urban areas, would you believe? There are a lot of immigrants who are underserved in Nigeria and elsewhere. It is often natural for immigrants/migrants to face challenges in settling down in their host countries, and Nigeria is not an exception.
According to a report by United Nations Department of Economic and Social Affairs (UN DESA), there are about 1.3 million migrants, including refugees, in Nigeria as at mid-2020. Although these figures largely cover registered immigrants as studies have shown that there are a lot of unregistered immigrants/migrants in urban cities like Lagos, Kano, Abuja, etc. Most of these migrants are from West African countries like Benin, Ghana, Mali, Cameroon, Guinea, The Gambia and Senegal. There is also a large number from Asian countries like India, China, Lebanon, and Syria. This is to say; over a million people are largely unbanked by FinTech standards.Globally, over 3,000 Remittance Service Providers (RSPs), charge more than $30billion to process approximately 2 billion transactions annually. Hence, remittance is a profitable direction for Fintechs to pursue. Moreover, immigrants complain of difficulty in carrying out financial transactions in host countries. Studies have shown that Mobile Transfer Operators, banks and post-offices are difficult for old and new migrants in Nigeria and elsewhere in the world. Studies also indicated that banks are the costliest channel of sending remittances. Therefore, building a FinTech startup that meets the needs of migrants will fill the necessary gaps.
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In this article, I discuss how to build a FinTech that meets the needs of migrants/immigrants.
Research Migrant Index
Reach Out to Migrant Communities
Develop Customized Payment App
Register to attend the Connect Nigeria Business Mixer
The app must be able to give the user every sense of home and comfort while using it.
Offer Specific Services
Final WordsAdaptable to any country, an immigrant-specific FinTech service that allows immigrants to open bank accounts, get debit and credit cards, and bank-like they never left their home country is a huge opportunity for the industry to explore. Featured Image Source: Connect Nigeria
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