Looking to start a fintech company? This is a quick guide on how to start a fintech company in Nigeria.
A Background on the Nigerian Fintech Industry
With the recent surge in the number of fintech in Nigeria, the question ‘how do I start a fintech company in Nigeria,’ has been asked often. This is partly because the Nigerian fintech industry is fast-growing and partly because the Nigerian tech and software industry is growing fast.
If you want to start one, here is a quick guide on how to start a fintech company in Nigeria.
A Quick Guide to Starting a Fintech Company in Nigeria
Step 1: Identify a Suitable Niche
The fintech industry has different sectors including Payments, CreditTech, InsureTech, Personal Finances Management, Crypto, AgriTech, etc. Identifying a sector in the industry will help you channel your effort and develop a quality product that’ll compete among top tech companies in Nigeria.
First, you need to identify a target audience and a problem, then develop a solution to the problem.
Step 2: Get Familiar with the Regulations
After narrowing down to a niche and finding out a problem to solve, the next step is finding out the regulations guiding the industry and the specific niche you selected.
Who regulates fintech companies in Nigeria?
This is the question you ask at this stage. This is because the banking and finance industry is a critical one and is strictly regulated. You will review the regulations and find out if you meet up with them.
The toughness of the laws and regulations guiding the financial industry helps to mitigate fraud and crime in fintech Nigeria.
The Step 3: Develop a Unique Selling Point (USP)
This is what many won’t tell you. The truth is that the fintech industry is getting more competitive with each passing month. To thrive, you need to develop/discover your USP, a unique angle. This will give you an edge in the market.
As an entrepreneur, think outside the box and offer something special that will solve a problem others haven’t solved.
Step 4: Apply and Obtain the Required Licenses
I have to say the application and obtaining of a license for a fintech company in Nigeria is not an easy feat. The license you will need depends on the niche you wish to concentrate on.
Seeking licenses might take you across different regulatory bodies including CBN and the Nigerian Communications Commission (NCC) if your intending fintech company will offer a service that includes mobile phone numbers.
Step 5: Register Your Business Name
Just like every other business in Nigeria, your fintech company must be registered in Nigeria under the Corporate Affairs Commission (CAC).
Registering your business in Nigeria involves several steps, structured to ensure there is no clash of business names.
The Step 6: Hire the Right Talent and get the Right Technology
Developing a fintech company involves lots of software development. You will need to hire the right software and cybersecurity experts.
Furthermore, you need to seek out the best technology to use to offer your customers the best and have a secured product.
No fintech startup relies on third-party frameworks, so it is crucial that you develop your frameworks and software from scratch.
With finance, comes a high risk of a data breach. You sure don’t want to be caught up in that.
Step 7: Start by Creating a Minimum Viable Product (MVP)
This is the step where you develop and roll out the product. Starting with a Minimum Viable Product is recommended so you can create a product with the basic features. Then from feedback, you will improve on what you have to suit your market.
After these steps, you can proceed with two crucial follow-up steps;
- Seeking investors and
- Building partnerships
Wrapping on with How to Start a Fintech Company in Nigeria
With these steps fulfilled, you are on your way to owning a Nigerian fintech company. If you found this quick guide on how to start a fintech company in Nigeria helpful, kindly hit the share button and drop a comment.