FairMoney aims to be top five Nigerian bank in ten years

FairMoney Microfinance Bank has declared its ambition to become one of Nigeria’s top five financial institutions within the next ten years, as the fintech deepens its push into consumer and small-and-medium-enterprise (SME) banking.

Speaking at a media roundtable in Lagos, Managing Director Henry Obiekea outlined the company’s transformation from a digital lender launched in 2017 to a full-service, credit-led neobank offering current accounts, payments, transfers, debit cards, SME loans, and merchant payment solutions.

“We started with a simple mission: to build a financial services home for the underserved and underbanked,” Obiekea said. “The microfinance banking licence we obtained in 2021 was a game-changer. It allowed us to move much closer to that vision.”

The strategic pivot gained further momentum in 2023 when FairMoney launched SME lending and merchant payment services, broadening its scope beyond consumer credit.

Building a deposit-funded bank
Despite being venture-capital backed, FairMoney deliberately shifted early to local-currency funding to minimise foreign-exchange risk. The bank issued private notes and commercial papers while rolling out savings products that attracted deposits from individuals and corporates.

“Today we are primarily funded by deposits,” Obiekea disclosed, adding that the structure has given the bank greater stability and resilience in a volatile economy.

He described FairMoney’s current identity in a single phrase: “We are a credit-led neobank – we started with credit, and now we look like a bank, with deposits, debt, and equity.”

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Reshuffling the banking hierarchy
Obiekea predicted a major reorganisation in Nigeria’s banking sector within the next five to ten years, with fintech-driven institutions displacing some traditional players.

“Every cycle brings reshuffling,” he observed. “Our internal thesis is that within the top five banks in Nigeria, you will see fintech-based players. We are deliberately positioning ourselves to be one of them.”
He cited superior user experience, faster service delivery, and continuous product innovation as reasons why customers are migrating from legacy banks to digital-first platforms.

Maintaining loan quality amid economic headwinds
Addressing concerns about rising defaults in the tough macroeconomic environment, Obiekea emphasised FairMoney’s commitment to ethical lending and collections practices.

“We don’t engage in unethical practices and we enforce very strict internal guidelines – even with external agencies,” he stressed.
The bank’s eight-year lending history and proprietary data trove, enriched by credit bureau partnerships and consented bank-statement analysis, have enabled increasingly accurate risk models.

“Data is currency,” Obiekea said. “Our models keep improving, and that is how we maintain a high-quality loan book and remain sustainable.”
On regulation: Strengthen existing frameworks

On the debate over a dedicated fintech regulator, the managing director advocated for enhancing collaboration with existing oversight bodies, including the Central Bank of Nigeria (CBN), NDPC, FCCPC, and others, rather than creating an additional layer.

“A new regulator won’t replace the ones we have; it will only add to the list,” he argued.

Authentic inclusion as the guiding philosophy
Obiekea reiterated FairMoney’s belief in “authentic financial inclusion” that goes beyond access to deliver fairness, transparency, and economic empowerment.

“It’s not just financial inclusion; it’s economic inclusion,” he said. “People need to trust the system and see real value before they save and borrow.”

The bank is preparing new offerings aligned with this philosophy, though details were not disclosed.
With a clear roadmap to deepen its market presence, widen its product suite, and strengthen governance, FairMoney says it is ready to compete head-to-head with Nigeria’s largest banks in the coming decade.