Between 2020 and 2023, the phrase “banking the unbanked” became a popular tagline for Nigerian fintech startups. Many claimed they would bring financial services to the 28.8 million adults in Nigeria who lacked access. However, most fintechs concentrated their efforts within Lagos, Nigeria’s economic hub, leaving much of the country underserved.
Fintava Pay, founded in 2022 by Tobi Arowolo, Samuel Ojerinde, and Isaiah Tokunbo, took a different approach. Rather than building a direct-to-consumer fintech app, the company developed a Banking-as-a-Service (BaaS) platform designed to empower microfinance banks, cooperative societies, and agent networks to create custom financial products targeting Northern Nigeria—where financial exclusion is most severe.
Localized approach to financial inclusion
Northern Nigeria faces unique banking challenges. The North East and North West regions report financial exclusion rates of 38% and 47%, respectively. While traditional banks exist, they are concentrated in urban centers, leaving rural populations without easy access to banking services. Digital literacy is also lower in the North, and smartphone penetration remains limited.
Fintava Pay’s model provides white-label banking solutions to super agents and microfinance institutions, enabling them to onboard users and offer essential banking services within their communities. The company also ensures accessibility by customizing its solutions in Hausa, the dominant language in the North, and utilizing transaction verification methods that do not rely on smartphones.
Innovative verification and security measures
To address verification challenges in areas with limited digital access, Fintava Pay employs a unique method: OTPs (One-Time Passwords) are sent to three different family members of the user. This prevents agents from unauthorized access to customer accounts. Additionally, users without smartphones receive ATM cards for transactions, with a stringent OTP confirmation process ensuring security before card issuance.
Fraud prevention remains a top priority for Fintava Pay. The company enforces strict onboarding requirements for agents, ensuring trust and transparency. To combat financial fraud, Fintava Pay also hires ethical hackers to routinely test and secure its systems.
Overcoming cultural and religious barriers
A significant obstacle to financial inclusion in Northern Nigeria is the perception of interest-based banking, which conflicts with Islamic principles. Many residents distrust traditional banks. By partnering with trusted super agents like BusyPay—a Kano-based agent network—Fintava Pay is able to reach individuals who would otherwise avoid digital banking. Within 24 hours of launching BusyPay’s custom banking app, the platform registered 1,000 downloads and began onboarding new customers.
Expansion plans and revenue model
While currently focused on Northern Nigeria, Fintava Pay has ambitions beyond Nigeria’s borders. The company is already working with a business in Zambia to replicate its model. However, the founders are cautious about early-stage fundraising, preferring to prove their business model at scale before seeking investors.
Fintava Pay generates revenue through:
- Service fees and subscription plans: Businesses pay for access to Fintava Pay’s API infrastructure, enabling them to provide banking services without a banking license.
- Transaction fees: The company takes a cut from wallet top-ups, bank transfers, bill payments, and ATM withdrawals.
- Debit card issuance: Fintava Pay charges businesses for linking debit cards to its banking platform.
Despite not yet turning a profit, Fintava Pay has processed over ₦30 billion ($38 million) in transactions and serves over 100,000 customers.
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Standing out in a competitive fintech market
The Nigerian fintech space is home to several BaaS providers, including Bloc, Anchor, and Maplerad. However, Fintava Pay differentiates itself by focusing on underserved markets, particularly Northern Nigeria. Unlike Moniepoint and Opay, which operate direct agent-led banking models, Fintava Pay allows businesses to customize their own financial services.
Additionally, the company claims it provides instant settlement for businesses, unlike competitors whose API services require a 24-hour waiting period. It also offers lower and negotiable transaction fees, making its platform attractive to businesses looking to minimize costs.
No plans for Lagos expansion
Unlike most fintechs that prioritize Lagos, Fintava Pay is committed to reaching parts of the country that are often overlooked. “You want to focus on other parts of the country where people are not focusing,” said Ojerinde.
With a unique strategy tailored to address financial exclusion in Nigeria’s most underserved regions, Fintava Pay is not just another fintech startup—it’s a financial lifeline for millions who have long been ignored by the traditional banking system. As the company expands its impact, it has the potential to redefine financial inclusion across Africa.
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Source: Techcabal
