👨🏿🚀TechCabal Daily – A star’s exit
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy new week! Before you dive into today’s edition, please take a minute or two to move TC Daily from your Promotions folder into your Main/Primary folder so you don’t miss any of our important coverage. On mobile, click the button on the top-right corner and select “Move”, and on desktop, just drag and drop this email. Thank you! Techstars Lagos shuts down Egypt gets a ‘B’ rating Piggyvest report says Nigerians are feeling the squeeze World Wide Web 3 Jobs Venture Capital Techstars Lagos shuts down Techstars Lagos with portfolio companies/Image Source: Techstars Lagos Last week, Techstars, one of the world’s most active accelerators shutdown Techstars Lagos. Launched in 2022 in partnership with ARM Labs, Techstars Lagos aimed to support and accelerate the growth of early-stage technology startups in Nigeria. It invested $2.4 million across 24 companies including CDCare, Jump n Pass, and GetEquity, with each startup receiving up to $120,000 in funding. Despite its modest pace of dealmaking, it’s calling a close to its time in Lagos. Depending on who you speak to, there are two theories for why Techstars Lagos is closing. The first is that its partnership with ARM abruptly ended. It is unclear what the terms of the partnership were so this theory is a little shaky. The other theory is that Techstars is tweaking its strategy. “We are focusing on the biggest tech ecosystems and phasing out some accelerator programmes in a few smaller venture markets,” the company said in a February interview. That move may be tied to a need to improve cost discipline. Techstars made a loss in 2023 and laid off 7% of its workforce as part of possible moves to rein in cost. Read Moniepoint’s Case Study on Funding Women After losing their mother, Azeezat and her siblings struggled to keep Olaiya Foods afloat. Now, with Moniepoint, they’re transforming Nigeria’s local buka scene. Click here for a deep dive into how Moniepoint is helping her and other women entrepreneurs overcome their funding challenges. Economy Egypt rated as having a stable investment outlook Egypt president Abd el-Fattah el-Sisi/Image Source: Times of Israel Fitch Ratings, one of the world’s top credit rating agencies, has raised Egypt’s credit status from a ‘B-’ to a ‘B’ rating. According to Fitch, this is a ‘stable’ outlook for Egypt’s economy. The rating, which is usually relied upon by investors to buy bonds and make lending decisions to a country, was due to several state-backed projects which stabilised growth in the country. Inflation in Egypt has also moderated in 2024, offering some relief to the country’s economy. Getting a credit upgrade like Egypt will lower the borrowing cost for any country, yet, it doesn’t automatically mean they’re off the hook. For Egypt, which suffered a debt crisis in 2023 after going on a borrowing spree, the fundamentals—like its high debt-to-GDP ratio, reliance on imports, and its limited foreign cash reserves—still show the underlying issue for the country. Egypt has also been impacted by regional conflicts that have reduced tourism activity and tanked the earnings by at least 25%. In 2024, Egypt has shifted its strategy to power projects and attracting foreign direct investment (FDI) through its partnerships with companies like Siemens and Huawei. Inflation in Egypt has slowed from 35.7% to 26.4% since the start of the year, likely impacting the country’s consumer price index (CPI), which tracks the price changes of consumer goods. The CPI itself declined from 29.8% to 26.4% between January and September 2024. This has freed up disposable income for consumers that spend money on activities that bring back money to the government. The upsides seem high for investors, as Egypt has shown more commitment this year to avoid a default. Issue USD and Euro accounts with Fincra Whether you run an online marketplace, a remittance fintech, a payroll, a freelance platform or a cross-border payment app, Fincra’s multicurrency account API allows you to instantly create accounts in USD and EUR for customers without the stress of setting up a local account. Get started today. Economy Piggyvest report says Nigerians are feeling the squeeze Image Source: Wunmi Eunice/TechCabal In 2023, Piggyvest shared a savings report that surveyed 100 respondents. That survey and the subsequent report aimed to show how Nigerians are spending, managing and saving money. This year, the savings report is more ambitious, surveying 10,000 people and showing us that things have gotten a lot more dire. Data analysts may argue that the sample size could be bigger and may ask questions of the methodology, yet the report throws up some useful insights. The report revealed that only 1 in 100 Nigerians spends ₦1 million ($609) or more in a month. Additionally, the report claimed that nearly 65% of Nigerians earn less than ₦100,000 ($61) a month. With headline inflation squeezing pockets, it’s no surprise that Nigerians aren’t saving as much as 2023. Read the report here. CRYPTO TRACKER The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $69,034.51 + 0.56% + 11.42% Ether $2,468.29 + 0.47% + 2.57% Grass $1.66 + 15.97% + 104.97% Solana $167.57 – 0.46% + 14.08% * Data as of 06:00 AM WAT, November 4, 2024. Jobs Platos Health – Product Marketing Manager – Lagos, Nigeria Flutterwave – Backend Engineer, Frontend Engineer, Compliance Officer – Hybrid (Lagos, Nigeria) Jobberman Nigeria – Digital Marketer – Lagos, Nigeria KPMG Nigeria – Strategy Consultant – Abuja, Nigeria Renmoney – Growth Manager, Head of Legal & Compliance, Head of Contact Centre – Lagos, Nigeria Nosmas – Full stack Developer – Lagos, Nigeria Earnipay – Digital Marketing Specialist, Content Marketing Specialist – Hybrid (Lagos, Nigeria) Paystack – Finance and Strategy Specialist – Lagos, Nigeria Norebase – Finance Lead – Remote (Nigeria) Startbutton – Digital Marketing Associate – Hybrid (Lagos, Nigeria) Qore – Product Manager – Lagos, Nigeria Get 60% off Google Workspace for a Year Start on Google Workspace with a 60% discount on your monthly subscription and
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2024 fully funded university scholarship for female Nigerians
The TKM Foundation has announced its 2024 Girls Only University Scholarship, a fully funded opportunity tailored to empower young Nigerian women from financially constrained backgrounds. The scholarship programme provides comprehensive financial support, covering tuition, accommodation, essential academic resources, and living expenses to aid financially disadvantaged young women to pursue higher education without financial hurdles. Here’s a breakdown of key details, from eligibility criteria to application deadlines. Eligibility for the TKM 2024 fully funded university scholarship for female Nigerians For new applicants Financial need: Applicants must be from a low-income background, with supporting documentation. University admission: Only students with JAMB admission letters to a Nigerian federal university are eligible. Exclusivity: Must not be receiving any other academic grants. References: Applicants must submit references from credible sources attesting to their financial need. For renewal applicants (Returning Beneficiaries) Academic standards: Must maintain a GPA of at least 2.0 on a 4.0 scale or 3.0 on a 5.0 scale.you Continued financial need: Renewing applicants must still meet financial need requirements. Recent references: Proof of financial need is important, using latest references. Exclusive scholarship: Beneficiaries cannot hold any other academic grants simultaneously. Application process TKM Foundation’s 2024 fully funded University scholarship for Nigerians application involves three simple steps: Prepare documents You will need to draft a 1000-word essay explaining why you deserve this scholarship. You are encouraged to include any achievements in academics and other areas, along with personal qualities or experiences that make you uniquely deserving of this opportunity. Do not forget to show your background and financial needs. Collect admission letter, proof of financial need(your bank statements, your parent’s or guardians’, or siblings’, references, and academic transcripts (for renewal applications). Fill out online form Visit TKM’s dedicated application portal and complete the form, uploading all necessary documents. Submit application Once all materials are uploaded, submit your application via the portal. Applicants will receive a confirmation email upon submission. Selection process TKM Foundation’s review focuses on financial need and academic merit. After an initial document review, selected candidates may be invited for an interview. Successful applicants will be notified via email, with announcements also made on the foundation’s website and social media channels. Application window for the TKM 2024 fully funded University scholarship for female Nigerians The 2024 fully funded University scholarship for Nigerians 2024 application window runs from November 1st, 2024, to December 31st, 2024. Early application is strongly encouraged to enhance selection chances. Why you may want to apply This scholarship offers more than financial support. It connects beneficiaries to a supportive community committed to their success, with guidance throughout their studies and career opportunities after graduation. Final thoughts TKM Foundation’s fully funded University scholarship for Nigerians, 2024, is a transformative opportunity. For young women eager to overcome financial barriers to education, this scholarship is a gateway to academic and personal growth. To apply or learn more, visit the TKM Foundation Scholarship Application Page.
Read MoreKenya’s KCB Bank completes IT infrastructure migration to tier III data centre
KCB Group, Kenya’s largest bank with a market capitalisation of $963.3 million (KES 124 billion), has completed the migration of its IT infrastructure to iColo, a tier III data centre. The migration from on-premise infrastructure to iColo’s facilities in Karen and Gigiri, Nairobi, began in 2022. Two people familiar with the matter told TechCabal that the migration was motivated by a need to control costs. The bank had been incurring millions of shillings on power, cooling, and uptime for its in-house data centre. It is unclear what cost savings KCB will achieve through this colocation migration since no specific projections or estimates have been provided. KCB declined to comment on this story. Before the move to colocation, KCB ran all its services on-premises. However, some services, such as Exchange, which offers currency exchange, online trading, and international money transfers, are hosted on Microsoft Azure, and plans are in place to move other services to AWS. “This transition involved moving to a professionally managed colocation facility,” one person familiar with the migration process and who asked not to be named so he could speak freely told TechCabal Colocated data centres, like iColo, provide shared spaces within larger facilities where multiple companies lease space. This allows such companies to benefit from shared services and infrastructure. “Colocation offers a more cost-effective solution compared to building and maintaining an independent data centre. Banks can achieve economies of scale by sharing common resources,” a banking executive, who also wished not to be named, told TechCabal. KCB isn’t the only Kenyan bank to choose this model. According to an industry insider, Equity Bank and NCBA have been using colocated facilities over the last few years to manage costs, signalling a growing trend among local banks to favour off-site data centre solutions. Kenyan banks have also began upgrading their core banking applications. In October, Stanbic upgraded its core platform, Temenos, to version R24. KCB uses Temenos for traditional banking and recently updated it to version R21 for its Rwandan operations. However, KCB uses Sopra, a different core system for digital banking services.
Read MoreTechstars Lagos shuts down after two years and 24 investments
Two years after launching its accelerator program in Nigeria, ARM Labs Lagos Techstars, also known as Techstars Lagos has shut down. It will also discontinue the third cohort program, which began in March 2024. Techstars’ global Chief Brand and Communications Officer, Matthew Grossman, confirmed the shutdown in an email. “Techstars’ partnership with ARM Labs has ended, and we will not proceed with a third ARM Labs Lagos Techstars Accelerator Program. The first two cohorts featured outstanding companies and founders, supported by a dedicated group of mentors,” Grossman said. The 24 founders and their companies funded by ARM Labs Lagos Techstars will remain Techstars portfolio companies and continue to have access to and support from the global Techstars network. “We remain optimistic about collaborating with the local startup community to maintain our presence in this vibrant innovation hub,” Grossman said. Techstars, a global venture capital accelerator with over 4,500 portfolio companies, partnered with Nigerian-based ARM Labs to bring its three-month program to Lagos for the first time in December 2022. The program, ARM Labs Lagos Techstars, ran two cohorts, bringing 24 startups under Techstars’ portfolio. Each startup received up to $120,000 in funding. By 2024, Techstars had invested about $2.4 million in startups, including Surge Africa, Rana, PressOne Africa, Jump n Pass, GetEquity, Beauty Hut Africa, Oystr Finance, Keza Africa, Keble, and Flick, among others. “I will continue to operate in the African venture ecosystem,” wrote Managing Director Oyin Solebo in a farewell letter dated September 20, 2024. Program Manager Oluwadunmi Fanibe moved on in August to join Google as a Mentor.
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FIRS job application 2024 now officially open – Apply here now
The Federal Inland Revenue Service (FIRS) has officially launched its job application portal for 2024 as earlier announced. With a vision of empowering Nigeria’s workforce and boosting its tax administration, FIRS is actively seeking candidates for Tax Officer positions, Officer I and Officer II, across several Nigerian states. Below, we outline all essential details including the eligibility criteria, application locations, and the steps for successfully applying. Available Positions and Locations Position titles: Officer I and Officer II in Tax Administration. Locations: Applications are open for roles in Abia, Anambra, Ebonyi, Enugu, Imo, Ekiti, Lagos, and Oyo states. Candidates should select their preferred location during the application process. Eligibility criteria for FIRS job application 2024 Age Limit: Candidates must be aged 27 or younger by 31st December 2024. NYSC Completion: Candidates must have completed the National Youth Service Corps (NYSC) programme no later than 31st December 2021. Required qualifications for the FIRS job application 2024 To be eligible for the FIRS 2024 recruitment, applicants need to meet educational requirements and possess specific academic qualifications: A Bachelor’s Degree or Higher National Diploma (HND) in First Class or Second Class Upper Division. Accepted fields include, but are not limited to, Accounting, Actuarial Science, Business Information Systems, Computer Science, Economics, Engineering, Law, Management, Mathematics, and Visual Arts. Additional qualifications such as relevant master’s degrees and professional affiliations (e.g., ICAN, ACCA, ANAN, COREN, NSE) are considered advantageous. Application Process The FIRS job application 2024 process is straightforward, ensuring accessibility for all interested candidates: Application portal: Candidates should visit the FIRS official recruitment portal at firs.gov.ng/careers to submit their applications. The portal is active from 12:00 am on 2nd November 2024. Step-by-Step Guide: Register on the FIRS portal, complete the application form, and upload relevant documents as required. Candidates must choose only one location from the specified states for their application. Important considerations Fraud prevention: FIRS urges candidates to avoid unofficial recruitment channels and cautions against fraudulent platforms. Applications are only accepted on the official FIRS website. Inclusivity: FIRS encourages women, minorities, and persons with disabilities to apply, aiming for a diverse and inclusive workforce. Placement flexibility: While candidates can apply for a specified location, FIRS may place successful candidates in any of its operational locations across Nigeria. What to expect after application FIRS will shortlist candidates who meet the specified requirements. Shortlisted individuals may undergo further assessments, including aptitude tests, interviews, and medical exams. This rigorous selection process ensures that only qualified and capable individuals join the FIRS team. Final thoughts on FIRS job application 2024 The FIRS job application 2024 presents an exciting opportunity for young Nigerian professionals. With roles across diverse locations and a streamlined application process, FIRS aims to attract a broad talent pool committed to enhancing Nigeria’s tax administration system.
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👨🏿🚀TechCabal Daily – Compliance hires are hot commodity
In partnership with Lire en Français اقرأ هذا باللغة العربية Welcome to November! On Thursday, a scientist demonstrated how to teach a computer to “smell” by replicating the scent of an orchid. Now, Meta is developing a robot hand that can “feel” touch. Unlike most devices, this robot hand can sense and measure tiny shifts in pressure from any direction on its fingertip, capturing how it deforms when pressed, tapped, or moved across surfaces. This advanced sense of touch could help scientists create more realistic and responsive robots. It’s increasingly looking like light years of robo-technology happening in 2024 already. In other news, OpenAI launched ChatGPT search, a feature that provides users with “timely answers” by searching for information online. Nigerian fintechs ramp up compliance hiring CBN wants banks to seek approval before changing CBA Kenya’s largest bank KCB completes moving customer data offline Zenith Bank joins the trillion-naira club Funding Tracker World Wide Web 3 Jobs Banking Compliance officers are the new gold in Nigeria Image Source: Google After the Central Bank of Nigeria (CBN) paused new account openings in April, Kuda Bank, Moniepoint, OPay, and Palmpay have been on a hiring spree, poaching fraud monitoring and compliance analysts from banks and rivals to beef up their compliance and fraud teams. Moniepoint has expanded its transaction monitoring team by five and hired at least a dozen compliance employees since May. They also poached two seasoned pros from OPay and another from Flutterwave. OPay also grew its legal team, and Palmpay welcomed six compliance staff, including a senior manager with over a decade at Union Bank. Kuda has onboarded three compliance analysts and a manager from the Nigerian Inter-Bank Settlement Scheme (NIBSS). These hirings mark a shift from the industry’s previous stance, where compliance was often seen as a pesky hurdle to rapid growth. Before the ban, fintechs chased swift customer acquisition, sometimes at the expense of stringent Know Your Customer (KYC) protocols. But with the CBN’s crackdown, which came with a stern warning about KYC measures, the fintechs have hired at least thirty compliance staff between them to increase how they monitor transactions and manage customers. “The central bank wants fintechs to be more compliant, and they need more hands to make that happen,” someone familiar with the hiring patterns of the fintechs told TechCabal. It’s not just about appeasing regulators; investors are also keen on ensuring their crown jewels are not wading into murky regulatory waters. Will this compliance overdrive be enough to reduce fraud and appease regulators? Only time—and perhaps a few more hires—will tell. For now, compliance officers are the new must-have employees in Nigeria’s fintech industry. Read Moniepoint’s Case Study on Funding Women After losing their mother, Azeezat and her siblings struggled to keep Olaiya Foods afloat. Now, with Moniepoint, they’re transforming Nigeria’s local buka scene. Click here for a deep dive into how Moniepoint is helping her and other women entrepreneurs overcome their funding challenges. Banking CBN wants banks to seek approval before changing core banking application CBN chief Olayemi Cardoso/Image Source: Premium Times Nigeria If you are a bank customer in Nigeria, the last couple of months have been tough. Bank apps have struggled with service disruption and other channels inaccessible. Several banks coincidentally decided to change their core banking software around the same time. While these technological changes are necessary, they are badly timed for millions of customers. Depending on who you ask, switching a core banking software is hard and could negatively impact customers—as we have seen since the second half of 2024. Yet, there is a need to regulate the process to protect customers who have to grapple with downtimes and service disruptions. Unsurprisingly, the Central Bank of Nigeria (CBN) has now stepped in. Two people familiar with the matter told TechCabal that the CBN has directed commercial banks to get regulatory approval before changing their core banking software. The CBN has a responsibility to protect customers as the regulator, leaving many to wonder why it took so long before it intervened. Some have also questioned why the regulator didn’t fine the banks involved. Given how the last few months have been, the directive is a much-needed succour for customers. Interesting days ahead. Issue USD and Euro accounts with Fincra Whether you run an online marketplace, a remittance fintech, a payroll, a freelance platform or a cross-border payment app, Fincra’s multicurrency account API allows you to instantly create accounts in USD and EUR for customers without the stress of setting up a local account. Get started today. Banking Kenya’s KCB completes customer data transfer to an off-site facility Image Source: Bloomberg Kenya’s largest bank, KCB Group, has officially completed its data migration to iColo, a local data centre. This strategic move, which took two years to finalise, aims to reduce operational costs by shifting its data, including account and transaction details, from its on-premise infrastructure to iColo’s facilities in Karen and Gigiri, Nairobi. While KCB didn’t share specific cost savings projections, industry experts believe that colocation offers a more cost-effective solution compared to building and maintaining an independent data centre. By sharing common resources, banks can achieve economies of scale. KCB isn’t alone in this trend. Other Kenyan banks, such as Equity Bank and NCBA, have also adopted colocation strategies to manage costs. Additionally, Kenyan banks are actively upgrading their core banking applications to enhance efficiency and customer experience. Stanbic Bank recently upgraded its Temenos platform, while KCB has updated its Temenos system for its Rwandan operations and uses Sopra for its digital banking services. Introducing Paystack Transfers in Kenya Paystack merchants in Kenya can now send single and bulk transfers to any Kenyan bank or MPESA account (including customer wallets, Paybills, and Tills) Learn more → Banking Zenith Bank joins the trillion-naira club Image Source: Google Zenith Bank reported a record-breaking pre-tax profit of ₦1 trillion ($609 million) for the first nine months of 2024, marking a 98.57% increase from the ₦505 billion ($307 million) the bank reported
Read MoreCBN directs commercial banks to secure approval before changing core banking application
Nigeria’s Central Bank (CBN) has directed commercial banks to get regulatory approval before changing their core banking software, according to two people familiar with the matter. The directive is in response to the impact of the ongoing technology changes by some of the country’s biggest banks. Since the second half of 2024, at least four commercial banks have changed their core banking applications. Those changes, driven by costs and a need for customisation, have left millions of customers unable to access banking services. Many of those customers have shared their complaints on social media platforms. While these banks say they’re working to resolve the issues, the regulator’s intervention will intensify the pressure on them. “The CBN isn’t happy with how customers have been complaining about banks in the past couple of months. That’s why it is stepping in,” one of those people said. The CBN’s directive is consistent with its responsibility to protect customers as the regulator, another person familiar with the matter said. In February 2024, the CBN released a revised draft of the reviewed 2019 consumer protection regulations. Yet banking experts and customers have questioned the regulator’s long silence over the issue, with some expecting the regulator to fine the banks like in other climes. In 2012, Royal Bank of Scotland (RBS) was fined £56m after a botched system upgrade left over 6 million customers unable to access their accounts. “I am still surprised that the CBN hasn’t taken regulatory action against any other banks. They should have fined them,” said one banking expert who asked not to be named. One theory is that the delay in the CBN’s intervention was due to the absence of a specific regulatory framework for core banking platform changes, one person familiar with the matter said. The new directive hopes to fix that.
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Only 1 in 100 Nigerians spends ₦1 million ($609) monthly, Piggyvest 2024 report shows
New data from savings company Piggyvest confirms that Nigerians’ purchasing power has significantly reduced in the past year. Nigerians are financially worse off than a year ago across several metrics like income, savings, spending, and emergency funds, as new data from Piggyvest highlights the impact of inflation on Nigerian pockets. Piggyvest’s report, which surveyed over 10,000 Nigerians, comes as Nigeria’s headline inflation slowed to 32.15% in August 2024, but well above 2023’s peak of 25.08%, largely due to economic reforms under President Tinubu. This inflationary environment has left sixty-five percent of Nigerians with no income or less than ₦100,000 ($61) monthly—a figure that rises to 86% for those earning below ₦250,000 ($151) monthly. The number of Nigerians with multiple income sources also dropped by 10% compared to Piggyvest’s 2023 report. “It’s like peanuts these days, earning ₦100,000. I find myself stocking money to get things for myself that I comfortably would if I did so a year ago or two years ago,” a salary earner in Enugu, an Eastern Nigerian city, told Piggyvest. Given how little the average Nigerian makes monthly, it’s unsurprising that 68% spend less than ₦100,000 each month, highlighting limited disposable income. When monthly expenditure rises to ₦500,000 ($303), only 3% spend above that. While spending on food has decreased from last year, it remains the largest expense for most Nigerians. Transport costs have now surpassed utilities and bills, ranking second after the removal of fuel subsidies. The number of Nigerians that save money has fallen from 64% in 2023 to 57%, with 10% of those saving money occasionally. “I used to save, but the increase in school fees, electricity tariffs, and even the cost of fuel has made it very difficult to continue,” a civil servant told Piggyvest. Emigration, the third most common saving goal on Piggyvest in 2023, has dropped to eighth place this year as two currency devaluations have led the naira to lose nearly 70% of its value against the dollar, significantly increasing travel and relocation costs. The number of Nigerians with emergency savings fell by 5%, with over two-thirds reporting they have no savings for unplanned expenses without incurring debt. Just 15% of Nigerians increased their savings over the past year, while 19% who had emergency savings no longer do. “We encourage all who engage with the data and insights from the Piggyvest Savings Report 2024 to make qualitative assessments of the shifts in consumer behaviour and attitudes around spending, saving, entrepreneurship and investing and respond accordingly,” Piggyvest said in a statement. You can read the report here.
Read MoreNigerian fintechs ramp up compliance hiring months after customer onboarding ban
Kuda Bank, Moniepoint, OPay, and Palmpay have responded to the central bank’s April ban by expanding their compliance and fraud monitoring teams, poaching talent from commercial banks and other fintechs. Since May, Moniepoint has expanded its transaction monitoring team, hiring five people. Two of those hires were long-time OPay employees with at least three years experience at the fintech, while another joined from Flutterwave. The fintech also added at least six fraud and compliance team members in 2024 and a team lead, bringing a decade of experience in Nigeria’s banking industry. Since the ban, Kuda has hired three compliance analysts, a Nigerian Inter-Bank Settlement Scheme compliance manager, and two fraud team members. OPay added four members to its legal team this year, while Palmpay hired six compliance staff, including a senior manager with over a decade of experience at Union Bank. This is a shift from an industry-wide stance that once saw compliance as hindering growth. Before the ban, fintech’s risk analysis skewed towards minimal compliance staffing and relaxed customer KYC requirements for account opening, but a December 2023 central bank guideline and the April ban have changed that stance. Regulators, worried about the speed at which fintech accounts could be opened, banned the fintechs from opening new accounts and gave the fintechs a list of conditions that included restricting peer-to-peer crypto transactions and mandating KYC for all tiered accounts. People familiar with the matter told TechCabal that the increased focus on compliance was part of the conditions for lifting the ban and aligns with the Central Bank of Nigeria’s (CBN) tougher stance on fintechs. The fintechs were asked to improve transaction monitoring, introduce proper customer management solutions, and tighten Know Your Customer (KYC) requirements. “Compliance has always been a major part of our financial inclusion efforts, and as such, we knew that coming into a new year in 2024 and off the back of a new government, there was always going to be improved regulatory scrutiny,” a person familiar with the hiring patterns of the fintechs told TechCabal. As Nigerian fintechs became ubiquitous and influential, they faced criticism for lax KYC measures and a perception that they help bad actors get away with fraud. “Customers can easily open Tier 3 accounts on fintech platforms in seconds. [The NSA] were worried that fintechs are rapid [in opening accounts] and told us to stop onboarding,” Tosin Eniolorunda, Moniepoint’s CEO, said in May. The hires should help ease regulatory tensions and mitigate fraud in Nigeria’s fintech industry as compliance teams help ensure that current and future products and services meet regulatory standards. “The central bank wants the fintechs to be more compliant, and they need more hands to make that happen. Transaction monitoring is a 24-hour job, so you need to hire many people and managers to take ownership,” one person familiar with the talks told TechCabal. A need to please investors has also played a part in the compliance staff demand, as investors want their portfolio companies to be in regulatory-safe waters. Although fintechs are ramping up their compliance teams, only time will tell if these efforts are enough to curb fraud in Nigeria’s fintech industry.
Read MoreYC-backed Bamboo expands to Canada with remittance product
Bamboo, the Y Combinator-backed investment app that allows Africans to buy and trade local and international stocks, is expanding to Canada after securing the country’s Money Service Business (MSB) licence. The company will also launch its remittance payment service, Coins by Bamboo. The product will enable diaspora money transfers to Africa, to reduce high cross-border fees through fee-free transfers and competitive exchange rates. “With many Africans now away from the continent, many want to invest back home, but complexity, high commissions and fees discourage it. A way to start is by addressing these pain points, which is why we are offering Coins” Richmond Bassey, Bamboo’s co-founder and CEO said. Bamboo’s expansion to Canada was from a business standpoint. In 2022, Nigeria was the fourth-largest immigration source country to Canada, with 22,085 Nigerians welcomed into the country. ”Based on insights, one of the countries our users have emigrated to the most is Canada with the UK on top of the list. This means more use for the app in Canada before we go into the UK and other markets,” Bassey said. Founded in 2019 by Richmond Bassey and COO Yanmo Omorogbe, Bamboo has seen some success since launching in Nigeria in 2020. In 2022, the company raised $15 million in a round led by American venture capital firms Greycroft and Tiger Global. Bamboo claims it has 500,000 users. With its remittance play, Bamboo is entering a competitive remittance market with well-established players like Grey Finance, Lemonade, Kyshi, and Nala. “The remittance market is huge, I don’t think one player can solve the problem. The difference is in the goal and what the company is trying to achieve”, Bassey added. While these companies primarily generate revenue from transaction fees and commissions which often include varying exchange rates for currency conversions, Coins by Bamboo will offer fee-free transfers and competitive exchange rates to customers. “This is just the first stage for us to solve a problem that will be useful in serving the diaspora. It is a means to an end, we are building a set of products that will support Africans everywhere. When we look at the cost and opportunities for offering Coins by Bamboo transaction-free, we are satisfied with offering the service that way,” Bassey told TechCabal. Bamboo also partnered with charitable organisations like the Women at Risk International Foundation (WARIF) and Chess2Slums, allowing users to make direct contributions via the Coins by Bamboo app. After its expansion into Ghana in 2022, the company added Nigerian stocks to its platform in May 2024. In June 2024, Bamboo commenced operations in South Africa, enabling users to invest in U.S. stocks directly from their smartphones. This expansion follows the acquisition of a financial services provider licence from the South African Financial Sector Conduct Authority (FSCA).
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