SmartSaver and the Upsurge of Digital Banks in Nigeria

Saving is hard. In Nigeria, it is harder. There are a lot of reasons for this; from the simple that is a lacklustre saving culture and debts to the complex that is poverty, abysmal interest rates and a currency that is very quickly loosing value.

Nigeria, for the past five years, has been struggling with a high inflation problem. And coupled with a very fragile economy, saving, for both the government and individual has become almost impossible.
At 21.34 per cent, at the time of writing December 2022, Nigeria’s inflation rate has surpassed World Bank’s projection by 20%. The sad statistic that is the last time Nigeria recorded a single-digit inflation rate was December 2015 at 9.6%, and the continuous rise of energy and food prices ensures that the average Nigerian will not breathe a sigh of relief anytime soon.

Add these to the fact that $1 is currently equal to N450 on the official market, and N758 on the more accessible black market. The naira has already broken its all-time low record this year and has been on a depressing free fall for the past few years.

So, inflation is high, the price of everything is skyrocketing, the naira is not an ideal currency and there is widespread poverty, but surely, there would be a few people who still have the power to save and would like to save, right? Well, they are faced with a bank saving interest that stands at 2% per annum. In Nigeria, this is not a good thing. Saving Nigerians who have to earn below inflation rate return on their savings see the value of their money diminish. This means that when repayments are finally made, the purchasing power of their saved money would be lower. In a simple sentence, saving isn’t worth it.
But it’s not all bad, there is a good tale to tell. And it is that millions of Nigerians are still saving, and have been using SmartSaver for quite a while. This is where the Nigerian FinTech industry comes in, Africa’s biggest digital marketplace. People with a ferocious work ethic and innovative minds have, simultaneously with the economic decline of the country, created an alternative for themselves. With better financial options and, in this case, saving interests, millions of Nigerians have simply foregone the pointless banks and opted for FinTech corporations like Smartsaver. Thus, unloading the weight of a crumbling economy and giving them financial freedom. Finally, Nigerians were allowed to save and save effectively, to take control of their finances and make better, smarter decisions. And they grabbed it with both hands with the help smart saveraver. FinTech in Nigeria, especially since Covid-19, has entered a frenzy. In 2021, FinTech startups raised a total of $536 million, a whole 59% of the total amount raised by all startups in Nigeria. That is an incredible statisbecausethat it all began barely a decade ago, and with little to no government and stakeholder intervention.
One of the first, and best, of this FinTech emp, ires is SmartSaver. Founded in 2017, SmartSaver immediately announced itself in the FinTech space with ridiculously good products and services unheard of at the time. When banks were offering 2% per annum on savings, other platforms were averaging 12% to 1 and 5%, Sand martSaver offered its users 25% per annum. When the people were asked for collateral in exchange for loans, SmartSaver was offering a million naira with no collateral.

To list all that SmartSaver offers is to write endlessly, but simply put, it shot itself straight to the top very quickly. And rightly so. Considering what we talked about at the beginning of this piece; Nigeria’s failing economy and the struggles of the average Nigerian, it is a no-brainer as to why SmartSaver has become the preferred bank of millions.
A revolution has upsurged the Nigerian economic eco-system and leading platforms like SmartSaver have offered the nation hope. Hope, amid the chaotic environment that is in Nigeria, for a better life and financial freedom. With increasingly unlimited access to the internet and an ever-growing young population determined to thrive, FinTech in Nigeria shows no signs of slowing down and these digital banks will, for sure, continue to rise and SmartSaver is at the front runner.