Nigerian traditional banks are making a push into the digital lending market in a move that will pitch them against their digital competitors. For the banks considering this move, a standalone digital lending app means they can acquire customers from smaller banks with high interest rates. Customers of other digital lenders may also be there for the taking, considering that most traditional banks have the cheapest lending rates in the market.
On January 17, TechCabal reported that Access Holding Plc, the parent company of Access Bank, received approval in principle from the Central Bank to launch Oxygen X, a standalone lending product. While Access is the first holding company to make a play for standalone digital lending, other banks are in talks to spin off standalone digital lending services, a highly-placed industry source told TechCabal.
“Banks may launch their apps, but they don’t have the mastery of execution that fintechs have,” said the source who asked not to be identified. “Banks will possibly drop the ball. I am not betting on any banks to win in the market.”
That argument isn’t new. When traditional banks began a push…
Ganiu Oloruntade
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https://techcabal.com/2024/01/29/nigerian-banks-digital-lending/
