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The Managing Director of Fairmoney Microfinance Bank, Henry Obiekea, has predicted that fintech-led institutions will emerge as key players among Nigeria’s dominant banks in the years ahead, as the country’s financial services sector undergoes structural realignment.
Obiekea made the remarks during an interview at Fairmoney’s Lagos office, noting that while Nigeria’s banking landscape is currently led by traditional banks, fintech firms are steadily expanding their footprint and reshaping customer expectations.
Reflecting on historical trends, he said earlier waves of “new generation banks” in the 1970s, 1980s, and 1990s eventually rose to industry leadership, adding that a similar shift is likely within the next five to ten years.
“Our view is that the industry will reorganise, with about five major banks emerging, and among them will be fintech-based players,” Obiekea said. “The question for us is how to position Fairmoney to be one of those institutions. That depends on the products we offer, the unmet needs we address, and how effectively we improve customer experience.”
He explained that many customers maintain a complex relationship with traditional banks, creating opportunities for fintech firms to attract users by improving processes, service delivery, and digital experience. According to him, while some legacy banks are responding by setting up fintech subsidiaries, there remains significant room for innovation and competition.
Obiekea noted that Fairmoney’s long-term strategy is deliberately structured around this anticipated shift. He highlighted the company’s evolution from a consumer-focused digital lender to a broader financial services provider.
“Fairmoney started with consumer and unsecured loans,” he said. “In 2021, we obtained a microfinance banking licence from the Central Bank of Nigeria, which allowed us to expand our services and move closer to becoming a full financial services home for our customers.”
That expansion deepened in 2023, when the company entered the SME merchant acquiring space, enabling it to support small and medium-sized enterprises with both payment solutions and credit facilities.
“We now provide terminals, help SMEs accept payments, and offer pocket capital loans to support their daily operations,” he explained, describing Fairmoney as a credit-led institution that is steadily broadening its reach.
Obiekea attributed much of the company’s growth to its focus on user experience, which he said has driven customer migration from traditional banks to fintech platforms. He pointed out that fintechs identified gaps in how legacy banks treated depositors, particularly around returns on savings.
“Traditional banks were offering little or nothing on deposits,” he said. “We responded by offering more attractive savings options, which helped us build trust and deepen relationships with customers.”
According to him, trust, access, and simplicity are central to meaningful financial inclusion. He argued that barriers such as long travel distances to bank branches, complex processes, and lack of confidence in the system discourage participation in formal finance.
“True inclusion goes beyond access to accounts,” Obiekea said. “It’s about economic inclusion—ensuring people have income, trust in the system, and easy access to financial products. When those elements come together, financial inclusion can truly work.”
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