Post-COVID-19: FinTech companies canvass special intervention funds from FG

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A panel at a knowledge-sharing event on Saturday in Lagos appealed to the Federal Government to grant access to some special intervention funds to enable empowerment of more people.

The panel made the call at a webinar organised by Zuriel Nigeria Ltd. for digital money lending providers.

According to them, it will also impact positively on the economy.

Zuriel Nigeria Ltd. is a legal firm which provides legal services to Small and Medium Enterprises (SMEs) in Nigeria.

The series had as its theme: “Running a Sustainable Money Lending Business Post COVID-19’’.

According to them, funding has been a major challenge in the lending business, particularly in terms of being able to get deposits like some other financial institutions.

Group Managing Director, Trafalgar Group, a firm that provides support for traders and salary earners via Kwikpay, Mr Gbemi Adelekan said the situation had made his organisation leverage on its shareholders to raise funds.

“Investors are quite sceptical in investing in the type of business that we do, so this makes it difficult to be able to get cheap funding.

“So we are appealing to the government that we are a group of people that are impacting the economy positively in terms of financial inclusion.

“We also have the mechanism to bringing people out from poverty to enterprise and contribute to employment,” he said.

The Managing Director of Arvo Finance, Mr Ayotunde Bally, also said that seeking funding for lending business in Nigeria was a challenge.

According to him, investors see it as a risky business.

“Investors want to be secured and want the larger pie of the cake. So if you want to bring foreign investors to your business, it makes it very difficult to seek funding for lending.

“The high interest rates on loan lenders charged in Nigeria has also made lending unsustainable for people that are collecting loans,’’ he said.

The Managing Director, Imagine Global Solutions, Mr. Bamise Ajetunmobi, wished that the regulatory environment would allow digital lending companies use mobile transactions like moneypay used in Kenya, to do their business rather than going to pick up cash.