Fintechs brace for competition as Nigerian banks charge into digital lending market
- Access Holding Plc, the parent company of Access Bank, received approval to launch Oxygen X, a standalone lending product.
- Traditional banks are in talks to spin off standalone digital lending services.
- Habari Pay, the fintech arm of Guaranty Trust Holding Company (GTCO), posted profits of ₦1.3 billion in the first half of 2023.
The entry of traditional banks into the digital lending market in Nigeria is a significant development. While they may have advantages such as lower interest rates and access to customer data, there are concerns about their ability to compete with fintech startups in terms of execution and innovation. It remains to be seen whether traditional banks can successfully change their lending strategies and become major players in the digital lending space.
