By Martin Ekpeke
In a move to steer the Nigerian fintech industry towards a prosperous 2025, PalmPay, the leading financial app with 16 million monthly active users, has unveiled seven key forecasts for the year.
During a media roundtable in Lagos, Chika Nwosu, Managing Director of PalmPay, emphasized the crucial role these forecasts will play in guiding the industry and further accelerating financial inclusion, which has seen a remarkable 23% increase in the past 13 years.
Key Predictions:
1. Enhanced Financial Inclusion: Fintech companies are poised to leverage innovative technologies like digital wallets, seamless payment gateways, and USSD services to expand service accessibility to underserved populations.
2. Strengthened Collaboration: A closer partnership between fintech players and regulators will be paramount in fostering a stable and secure financial ecosystem. This collaboration is crucial to address compliance concerns and ensure Nigeria’s removal from the Financial Action Task Force (FATF) grey list.
3. Smartphone-Driven Growth: With smartphone penetration projected to reach 65% by 2026, mobile money services are expected to experience significant growth as more Nigerians gain access to digital platforms.
4. Focus on Affordability: The increasing demand for affordable financial products and savings solutions will drive fintech innovation, with companies striving to offer cost-effective services to a wider segment of the population.
5. Expanding Agent Networks: Building upon the success of agent networks, which have grown exponentially from under 10,000 in 2015 to over 1.5 million in 2023, PalmPay anticipates continued growth in this area, solidifying agent networks as the backbone of mobile money operations.
6. AI-Powered Solutions: Artificial intelligence will play an increasingly vital role in enhancing customer experiences. Machine learning, predictive analytics, and fraud detection systems will be deployed to personalize services and ensure secure transactions.
7. Diversification of Digital Services: Fintech platforms are expected to diversify beyond traditional payment services, venturing into new areas such as insurance tech, health tech, savings, and wealth management to offer a comprehensive suite of financial solutions.
Meanwhile, Nigeria’s biggest financial app has highlighted that despite significant progress in the fintech industry, challenges remain. These include adapting regulations to keep pace with rapid technological advancements, addressing cybersecurity risks and fraudulent practices, and ensuring equitable access to financial services for all.
“In the face of these challenges, we have leveraged cutting-edge technology to make world-class financial services accessible to the mass market in regions where they are most needed,” assured Nwosu.
As of today, PalmPay operates as Nigeria’s leading financial app, boasting 16 million monthly active users and rapidly expanding into new markets. The company serves over 35 million customers and 1.2 million business users, providing them with digital accounts, real-time payments, and access to savings and credit solutions.