President of the Capital Market Academics of Nigeria (CMAN), Professor Uche Uwaleke, has said that FinTech companies have already changed how Nigerians think about financial services.
This is as he commended the country’s digital banking sector, saying it has become one of the most vibrant in Africa.
Uwaleke, however, said that there were still gaps to close, particularly in service reliability, rural connectivity, cybersecurity and digital literacy.
In an interview with the News Agency of Nigeria on Sunday, he listed some challenges hampering digital banking operations to include infrastructure, cybersecurity, and consumer confidence.
Uwaleke noted that frequent network failures, unstable electricity supply, and occasional service disruptions could affect transaction reliability.
According to him, cyber fraud has also become more sophisticated, making continuous investment in security essential for both banks and FinTech companies.
He said that many customers still experienced delays in transaction reversals or dispute resolution, which could reduce trust in digital platforms.
“Nigeria has made significant progress and is now widely recognised as one of Africa’s leading digital finance markets.
“The growth of FinTech companies, increasing smartphone penetration, expanding agent banking networks, and supportive regulatory initiatives have all contributed to greater financial inclusion.
“More Nigerians, including those in previously underserved communities, now have access to financial services without necessarily visiting a physical bank branch.
“The pace of innovation has also attracted international investors, positioning Nigeria as a major FinTech hub on the continent but there are still gaps to close.
“Digital literacy is another challenge, especially among first-time users and people in rural communities,” Uwaleke said.
On the regulatory side, he said that maintaining the right balance between encouraging innovation and ensuring financial stability remained an ongoing task.
Uwaleke said the emergence of FinTech companies such as Opay, Moniepoint, PalmPay, Kuda, and others had transformed the competitive landscape.
The president said that rather than competing with traditional banks, many of the companies had expanded the overall financial ecosystem by serving previously underserved individuals and small businesses.
“I believe the next five years will be transformative. FinTech companies have already changed how Nigerians think about financial services by making banking faster, more convenient, and more accessible.
“Going forward, I expect deeper collaboration between traditional banks and FinTechs rather than outright competition.
“Artificial intelligence, open banking, digital lending, and more personalised financial services will become increasingly common.
“We are also likely to see greater expansion into rural communities, stronger cross-border payment solutions, and improved financial inclusion.
“If current momentum is sustained, Nigeria has the potential to become the leading digital financial services market in Africa and a reference point for innovation across emerging economies.”
He advised regulators to focus on creating an environment that promoted innovation while maintaining strong consumer protection and financial stability.
Uwaleke said that clear, predictable regulations, continued investment in payment infrastructure, stronger cybersecurity standards, and policies that encouraged healthy competition would be critical for sustaining growth.
He also advised operators to prioritise building long-term customer trust by investing in reliable technology, reducing service downtime, strengthening cybersecurity, improving customer support, and resolving complaints promptly.
Uwaleke noted that financial institutions must also invest more in educating customers on digital financial safety and responsible usage.
