Bringing Financial Inclusion to Northern Nigeria Through Customized Banking Solutions

During Nigeria’s fintech boom between 2020-2023, many fintech companies claimed they would bank the unbanked, but few followed through on this promise beyond Lagos.

However, Fintava Pay, a Banking-as-a-Service (BaaS) platform, has been making strides in financial inclusion in Northern Nigeria since its launch in 2022.

Fintava Pay’s approach is unique in that it provides white-label banking solutions to businesses, super agents, and microfinance institutions, enabling them to offer tailored financial services to their respective communities.

This approach is particularly useful in Northern Nigeria, where digital literacy is low and financial exclusion is severe. About 38% of the North East and 47% of the North West’s population are financially excluded.

The company’s CEO, Tobi Arowolo, explained that the problem in Northern Nigeria is not the lack of banks, but rather the centralized nature of banking infrastructure in urban centers, leaving rural areas underserved. Fintava Pay’s solution allows super agents to open bank accounts for users, providing a lifeline to those in need.

Fintava Pay often customizes its banking solutions in Hausa, a local language commonly spoken in Northern Nigeria, and carries out transaction verification methods that don’t rely on smartphones.

The company uses a unique verification process, sending OTPs to three family members in different locations to ensure the agent does not have access to the user’s account.

The startup has seen significant success, recently onboarding BusyPay, a super agent network in Kano. Within 24 hours of launching BusyPay’s custom banking app, the platform registered 1,000 downloads and began onboarding customers who previously had no access to digital banking.

According to Fintava Pay’s co-founder, Ojerinde, “There are people who refuse to open accounts with traditional banks because they associate them with interest-based transactions. But when they see a familiar face—a trusted local business or agent—they are more likely to engage with financial services.”

To combat fraud, Fintava Pay has implemented strict onboarding requirements for agents, including identity verification and OTP authentication. The company also hires ethical hackers to regularly check for loopholes within its system.

Fintava Pay generates revenue through a mix of service fees, subscription plans, and transaction charges. The company has processed over ₦30 billion ($38 million) in transactions and serves over 100,000 customers.

With its focus on financial inclusion in underserved markets, Fintava Pay is making a significant impact in Northern Nigeria and plans to expand its services across Africa.