Nigerian Fintechs Shift Focus from Growth to Sustainability

Babatunde Akin-Moses, founder of the digital lender Sycamore, asserts that the Nigerian fintech landscape is transitioning from a growth-centric narrative to one focused on sustainability and institutionalization. He notes that previously, the emphasis was on metrics like user acquisition and transaction volumes, but the industry is now grappling with questions regarding customer acquisition costs, liquidity management, and resilience against regulatory changes.

Akin-Moses highlights that several mature fintechs are evolving into banks or broader financial services to enhance customer service and control over financial infrastructure. He reflects on his earlier belief that merely solving a genuine problem would ensure business success, acknowledging that the operating environment has become more complex, requiring fintechs to manage various risks, including credit, liquidity, and regulatory risks.