PalmPay canvasses Banks, Fintech's Collaboration to Enhance Nigeria's Financial Inclusion

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Fintech platform, PalmPay, said there is the need for collabiration between banks and fintech companies to drive financial inclusion, particularly at the grassroots level.

Chibuzor Melah, Head of Partnerships at PalmPay, disclosed this during the Nigeria Fintech Forum in Lagos.

The event, with the theme: “Building the Next Frontiers for Nigeria’s Fintech,” brought together key stakeholders from both the public and private sectors, including regulators, to discuss the rapid advancements in Nigeria’s financial technology industry.

During a panel session titled: “Rewriting the Rules: Building an Open, Innovative, and Collaborative Bank of the Future,” Melah highlighted PalmPay’s commitment to using technology to collaborate and innovate for customer value.

He emphasised that “PalmPay is a technology-driven company that believes in collaborating and innovating to deliver value to customers.”

Melah also attributed PalmPay’s success over the past five years to its investment in data, which has provided valuable insights into customer behaviour.

“These insights have enabled the creation of tailor-made solutions that have helped the company reach the unbanked population and build trust in open banking.

“We have succeeded by collaborating with other players in the financial sector. We believe that there’s still a lot more to do in building trust and driving financial inclusion at the last mile,” he added.

The financial sector in Nigeria has seen remarkable growth, with formal financial inclusion rising from 56% in 2020 to 64% in 2023, according to the EFInA Access to Finance (A2F) Survey 2023 report.

Melah attributed the progress to collaborative efforts between banks and fintechs, while also stressing that more collaboration is needed to unlock new markets and deliver products that benefit the economy.

PalmPay, launched in Nigeria in 2019 under a Mobile Money Operator license, has grown to over 30 million app users.

The platform offers a range of financial services, including money transfers, bill payments, credit services, and savings, all aimed at driving economic empowerment and financial inclusion across Africa.

A recent report on the informal economy has disclosed that only 1.3% of Nigerian informal businesses reach a monthly profit exceeding ₦2.5 million.

The Informal Economy Report 2024, compiled by Moniepoint, sheds light on the financial realities of this crucial sector, which contributes significantly to the country’s GDP.

According to the findings, 72.3% of informal businesses surpass the ₦1 million mark in monthly revenue. However, their actual profit figures are much lower, with most making less than ₦250,000 monthly.