Co-founder and group chief executive officer, Kuda Technologies Limited, Mr. Babs Ogundeyi, has posited the boost of digital financial services in Nigeria in the future, saying there is hope for frontline startups like Kuda as it is set to become one of the biggest financial institutions in the next ten years.
In a recent interview on TVC News, where Mr. Ogundeyi addressed several issues in the Nigerian business and financial services sector including the impact of financial technology (fintech) on the nation’s and Africa’s respective financial landscapes, challenges in the competitive financial market, coping with existing and new regulations, the drive to boost financial inclusion, amongst others, Mr. Ogundeyi noted that Kuda’s customer-centricity and focus on the accessibility and affordability of financial services sets it apart.
“The tech industry generally has seen a great bull run since 2020 till date. Of course, globally there is a sort of general slowdown especially from likely investors who typically fuel technology companies but having said that, it just means that there is more focus on building sustainable businesses rather than only chasing growth. It is kind of a good thing, there is a bit of recalibration in the mind-set of founders which I think in the long run will benefit the industry generally and that includes fintechs as well.
“Considering Nigeria being the most populous country in Africa and the introduction of several notable fintech products in recent times, we are experiencing significant traction in terms of growth and customer acquisition but we are still scratching the surface. For example at Kuda, we started in Nigeria in 2019, with a mission to provide affordable financial services globally to all Africans, and we currently have about five million customers in Nigeria, with potentially millions more to address. So we are really at the infancy of this digital revolution. Put simply, the potential is enormous and we are satisfied with the start that we have made in the industry and we are very hopeful for what’s to come.
“With the improvement of internet services and broadband penetration there is going to be more stability and even bigger usage of digital products. The next ten years are going to be crucial. I believe the use of digital financial services will become mainstream and more acceptable to more Africans. That is, we will no longer refer to digital banking as a new means through which customers access banking services, but as the only or main channel for banking services. This will be the new normal.
“The way I see it, the smart thing to do is to prepare well in advance and position ourselves at the forefront of this journey, because in the future, the biggest financial institutions will all be digital first, and we have started well. It is truly an exciting prospect and I am really looking forward to the future – our future,” stated Ogundeyi.
Speaking on one of Kuda’s unique selling points, he shared: “On the attributes that make us different – 70 percent of Africa’s population is largely youthful (that is under 30). Essentially, what we have at Kuda is a very young workforce across all our teams and we are building products and services for a customer base that we have a great understanding of and that’s why we are able to build products that we know they really want.
“We are super customer-centric and the pillars we look out for is to be accessible, affordable and rewarding. Everything we do revolves around these three pillars and fortunately since we launched in Nigeria in 2019 we have seen a great trajectory.”
Commenting on what governments and regulators can do to leverage the enormous potential of fintechs in accelerating financial inclusion and optimising other benefits of digital financial solutions, he noted that the most important point was – dialogue. Honest and constructive dialogue between the key stakeholders. He added that “better understanding on both sides and a willingness to allow for innovation by fintechs, would naturally bring the required solutions and opportunities for better collaboration between all parties to work together to aid the future growth of financial services and further deepen financial inclusion.”
