In the heart of Nigeria, a financial revolution is quietly reshaping the contours of business and everyday life. Edidiong Uwemakpan, Vice President of Brand, Communications, and PR at Moniepoint, likens business to an ecosystem, emphasizing the interconnectedness and interdependence within the financial sphere. In an interview with Finance Magnates, Edidiong, affectionately known as Didi, shared her insights and initiatives which aim to bridge the gap in financial inclusion, a pressing challenge across Africa.
Edidiong's firm serves a myriad of businesses, from informal vendors to larger enterprises. “In Nigeria, over 70% of businesses are informal, and we serve most of them,” she explains. Moniepoint's approach is multifaceted, beginning with providing basic banking services and extending to offering credit facilities and financial tools like invoicing and accounting software. This comprehensive support system is designed to empower businesses to grow and thrive.
A critical issue that Moniepoint addresses is the reliability of payment systems.
Infrastructure challenges in Nigeria often mean that even when a merchant has a card machine, transactions can fail. “We started offering customers cards because digitizing individuals without ensuring merchants can accept these cards is futile,” Didi says. By focusing on enhancing the merchant side first, Moniepoint ensures that customers have practical reasons to use digital financial services.
Expanding financial services beyond just transactional capabilities, Moniepoint is also launching a salary advance product. This initiative aims to provide credit through employers, making it easier for individuals to access funds when needed. “Credit is still very low in Nigeria, only about 5%, so our ecosystem ensures that everyone can access credit,” she noted. Moniepoint’s mission is to democratize access to financial tools, adhering strictly to regulations while pushing for broader financial inclusion.
Empowering Through Local Agents
To address this, Moniepoint has built an extensive distribution network of local agents who personally engage with communities. These agents, known as relationship managers, are trusted local figures who educate their neighbors about the benefits of having a bank account and using digital financial products. “These 15,000 agents are critical to our mission,” Edidiong says. “They earn commissions on transactions, which motivates them to bring more people into the financial system.” This grassroots approach not only drives financial inclusion but also creates employment opportunities and fosters economic development at the community level.
When discussing policy and compliance, Edidiong highlights the importance of education.
Edidiong emphasizes that one of the biggest barriers to financial inclusion is knowledge. Many people, especially in rural areas where banking services are sparse, lack the information and trust needed to engage with formal financial systems. Nigeria, with its 774 local governments, has over 300 areas with no banks at all.
Some fear that opening a bank account and engaging in digital transactions will lead to increased taxes. “We educate them that they won't be taxed until they earn a certain amount of money,” she explains. This reassurance, coupled with potential rebates, can significantly boost the adoption of digital financial services. Her colleague, Bemigho Awala, added that operating under a formal business name can open doors to government credits and loans, enhancing credibility and growth potential for small businesses.
Bridging Continents: Serving the African Diaspora
But Moniepoint's vision extends beyond Nigeria’s borders. The company is spearheading a new venture in the UK aimed at serving the African diaspora, a project aimed at facilitatinng trade and financial transactions between Africans in the UK and those on the continent. “We’re building something for African businesses,” she reveals. The service will initially launch between the UK and Nigeria, with plans to expand to Kenya and other countries. By offering multi-currency accounts and seamless money transfers, the initiative seeks to strengthen economic ties and provide reliable financial services to the diaspora community.
"The goal is to be market leaders in five African countries by 2029."
Didi explained how this ambition is rooted in a deep understanding of local contexts and a commitment to making meaningful impacts. The company's strategy, driven by local insights and a deep understanding of community needs, reflects a broader movement towards creating a more connected and equitable global economy. They focus on solving real problems and creating sustainable solutions. Moreover, they are currently acquiring a bank in Kenya and have operations in Tanzania through strategic investments.
The firm’s strategy, rooted in building trust and providing practical solutions, exemplifies a new wave of financial inclusion.
By addressing the core issues of knowledge, infrastructure, and access, they are paving the way for a more inclusive and equitable financial landscape in Africa. As they continue to expand and innovate, their impact will undoubtedly resonate far beyond the borders of Nigeria, touching lives and communities across Africa and the diaspora.
