Greetings guys,

I recently got into discussion with my friend who develops softwares/ App about having a Fintech App like Opay, Kuda etc. Personally I've been giving it a deep thought as one of the business I'll start this year. So my questions are,
What are the disadvantages of operating such here in Nigeria?
What are the prospects?
Will it require me breaking the bank to start up such.
Any government restrictions??

Thank you guys.

Cc.
dominique, naijacutee, puskin, FOD please push to FP

There are prospects but once you do the registration process and it capital intensive .non-refundable application fee of ₦100,000 (One Hundred Thousand Naira), payment of the refundable sum of ₦50,000,000 (Fifty Million Naira) in escrow to the CBN, and a licensing fee of ₦1,000,000 (One Million Naira) to be paid before the issuance of the final license.

There is Kuda, opay. Palmpay, moniepoint and so many others

The market is kinda saturated in my opinion which might be wrong but I am just trying to be realistic

Saturated market along with high license fees.
No need to venture into it.

Most of them started as loan apps and some as microfinance firm. They started when online loans weren't well regulated and no one checkmate them.
But now it's hard to give Nigerian loans because things are really tough. So, if you want to start a fintech app with the pervious models, now is not the time.

You should consider other ventures

B like you be blockchain cause the startup cost heavy o. Someone mentioned it already

hakeemhakeem:
There are prospects but once you do the registration process and it capital intensive .non-refundable application fee of ₦100,000 (One Hundred Thousand Naira), payment of the refundable sum of ₦50,000,000 (Fifty Million Naira) in escrow to the CBN, and a licensing fee of ₦1,000,000 (One Million Naira) to be paid before the issuance of the final license.

Frankly speaking, starting a project like this is quite expensive looking at what you listed above.

Thanks brother

5ThChild:
Most of them started as loan apps and some as microfinance firm. They started when online loans weren't well regulated and no one checkmate them.
But now it's hard to give Nigerian loans because things are really tough. So, if you want to start a fintech app with the pervious models, now is not the time.

You should consider other ventures

You're right, most of them started when there weren't much regulations.

Thank you very much

Bishops10:


Frankly speaking, starting a project like this is quite expensive looking at what you listed above.

Thanks brother

so you were thinking cost of entry is low like starting a Blog ?

if it were that low, e for don plenty na.

Funny enough, you could partner with a DMB e.g GTB, firstBank, any of the microFinance banks, etc.

Also, it's much cheaper buying liscence from a bank about closing down, than getting it directly from CBN.

If looking to buy liscence, target northen stattes. They have lots of microFinance Banks struggling - that's if dem never closeUp since last CBN dropped the hammer on them.