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  Setting up a mobility FinTech company in Nigeria is not without its challenges. These challenges are social, political, economic and even infrastructural. However, there are dozens of mobility FinTech startups in Nigeria with the two leading being Moove and Autocheck. Others include Quriee, Tour, Pickmeup and so on. Despite their presence, mobility FinTech is still nascent. Hence, it is not surprising that these particular fintech companies in Nigeria face many challenges that hinder their growth and impact. In this article, I discuss the challenges and the way out.
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The Problems

  • Lack Of Access To Financial Services
Many people in Nigeria do not have access to traditional financial services such as bank accounts and loans. This makes it difficult for mobility fintech companies to reach and serve their target customers.
  • Limited Infrastructure
Nigeria’s infrastructure is underdeveloped and inadequate, which makes it difficult for mobility fintech companies to operate efficiently. Poor roads, limited public transport options, and unreliable power supply all contribute to the challenges faced by these companies.
  • High Costs
The cost of operating a mobility fintech company in Nigeria is quite high, due to factors such as high rent, salaries, and taxes. This can make it difficult for these companies to offer competitive prices and remain profitable.
  • Regulation
The regulatory environment in Nigeria is complex and constantly changing, which can make it difficult for mobility fintech companies to navigate and comply with relevant laws and regulations.
  • Competition
The mobility fintech sector in Nigeria is highly competitive, with many companies vying for a share of the market. This can make it difficult for new entrants to gain a foothold and establish themselves.
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The Way Out To overcome these challenges, mobility fintech companies in Nigeria can take the following steps:
  • Partner with traditional financial institutions
Mobility fintech companies can partner with traditional financial institutions to expand their reach and access to financial services. This can also help them to comply with relevant regulations and improve their credibility.
  • Invest In Infrastructure
Mobility fintech companies can invest in infrastructures such as charging stations, maintenance facilities, and data centres to improve their operations and efficiency.
  • Offer Competitive Prices
 Mobility fintech companies can use data and analytics to identify opportunities to reduce costs and offer competitive prices to their customers.
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  • Build Relationships With Regulators
 Mobility fintech companies can work closely with regulators to understand and comply with relevant laws and regulations. This can help to build trust and credibility with customers and partners.
  • Focus On Differentiation
 Mobility fintech companies can differentiate themselves from their competitors by offering unique products and services that meet the specific needs of their target market. This can help them to stand out in a crowded and competitive market. Final Words Overall, the key to success for mobility fintech companies in Nigeria is to focus on building strong partnerships, investing in infrastructure, offering competitive prices, and differentiating themselves from their competitors. By taking these steps, these companies can overcome the challenges they face and achieve long-term growth and impact. Featured Image Source: PYMNTS
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This article was first published on 24th December 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.

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