Industry report 2023
State of Fintech & Regtech (NIGERIA)
Africa’s FinTech sector is experiencing rapid growth, with 60 transactions in the first half of 2023, despite a 64% reduction in funding to $189 million compared to 2022. This decline amounts to a 30% decrease in deals year-on-year. Notably, international tech giants are actively investing in Africa’s FinTech ecosystem. Nigeria takes the lead, with Lagos being the epicenter, witnessing 25 deals and securing a 42% share of all African FinTech transactions in Q2 2023.
Nigeria’s FinTech industry is flourishing, driven by visionary policies like the Cashless Policy and a slew of innovative initiatives. While payment-related services are prevalent, there is a growing focus on sectors such as RegTech, Banking-as-a-Service (BaaS), and more.
The synergy between FinTech and RegTech is evident as RegTech solutions gain traction in regulatory compliance, anti-money laundering, and KYC processes. With Nigeria’s digitally connected population and diverse regulatory landscape, flexible and adaptive RegTech solutions tailored to local contexts are on the rise, projected to encompass 40% of startups by 2025. In summary, Africa’s FinTech is on the rise, with RegTech playing a vital role in shaping its future.