Having worked in banking, technology, and payments, Adedeji Olowe, Founder and Chief Executive Officer at Lendsqr, knows how foundational systems become the catalyst for growth.
Thus, he said, the opportunity to spur growth into the African economy is being a lending infrastructure provider throughout Africa.
He thinks that the surest method of boosting financial inclusion in Africa is through unlocking credit access.
Coming into lending, Olowe dove in during his two-year tenure from 2006 to 2008 at First City Monument Bank-FCMB, one of Nigeria’s biggest banks, where he engineered a lending system. With over two decades of experience in banking, credit, technology, and venture capital, this deal cements his involvement in the space.
He also sat on the boards of Sparkle and Paystack after serving as chairman at TeamApt.
Savings and payments, however, have accounted for the bulk of growth in financial inclusion in Nigeria, and there is a wide gap in the credit and insurance space.
Today, there is great improvement in financial inclusion from previous years; for instance, the banked adult population of Nigeria rose from 36 million in 2016 to 47.7 million in 2020.
Building any lending solution is hard work, but what the fintech mogul has in the offing with Lendsqr is a different beast altogether.
Dratech International celebrates Adedeji Olowe, one of those giants in the industry who by their leading influence have reshaped and strengthened the Fintech sector.
This article will, therefore, attempt to give a glimpse into the achievements and influence of Adedeji within the Fintech space on the African continent.
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The Credit Gap in Nigeria: Understanding the Challenges
Accessing credit in Nigeria is not easy, and for good reason: a 2021 Enhancing Financial Innovation and Access EFInA report shows that in 2020, a meager 3% of Nigeria’s 106 million adults had access to credit from a regulated financial institution.
Such a low percentage points at a huge gap, and according to analysis by Lendqr, the credit market is worth ₦72 trillion ($173.5 billion) alone.
Where is the money, then? Traditional financial institutions should be falling over themselves for a piece of the action. Apparently not, and for good reason.
Most financial institutions across Africa are only willing to lend to the most creditworthy of borrowers, including governments, large corporations, and high-net-worth individuals.
For small businesses and regular people, the scenario is totally different. Equally growing, however, are loan defaulters and rogue lenders.
The fact remains that Olowe believes it may be hard to blame institutional lenders. Not much has improved on the average Nigerian’s credit score, and the low lending percentage says it all.
Innovative Solutions in Lending
Lendsqr is a fully digital and data stack for the small and medium lenders that may allow lending to customers at scale by means of best-of-breed decision engines, integration into payments systems, and quality decisions based on data.
The value proposition of this startup can be beautifully understood by taking the example of the Canadian tech giant Shopify. The platform allows retailers to create and manage their online stores.
If you have something to sell online, Shopify takes the pains of creating your website and lets you customize the platform to attract visitors.
Lendsqr, on the other hand, gives a platform to any company interested in entering the lending game.
Lendsqr is building a technologically powered lending infrastructure, driving the optimum use of data and integrations by creating a complete ecosystem. It gives lenders a way to digitize their lending in a scalable, sustainable, ethical, and profitable way.
While Lendsqr has also built integrations with some leading payment processors, leading credit bureaus, and transactional data providers. According to Olowe, such integrations and ecosystem play are often extremely hard to pull off and provide Lendsqr with a unique opportunity to position itself at the confluence of credit and what people use credit for – shopping, health, cashflow, among others.
Lendsqr is only making sure that Africans, starting with Nigerians, have access to credit that would create a long-term and, consequently, expanding economy in the coming years by enabling smaller lenders to scale up.
Lendsqr’s Impact on Small Businesses
For a financial sector full of lending-averse financial institutions, Olowe insists that Lendsqr is tailored to match the reality of the market.
Lendsqr is leveraging scale to pass on cost savings to the lenders, which invariably means cheaper loans for Africans and Nigerians.
So far, this approach has won investors’ hearts, and Lendsqr has closed an undisclosed pre-seed round. On the strength of this, Lendsqr has some major upgrades in sight.
The startup also plans to hit customers at their point of need by targeting BNPL players across different sectors.
Beyond technology, it also intends to link up lenders with capital providers to assist them in scaling their lending.
One need only consider recent funding trends for BNPL startups, credit-led neobanks, and innovators like Indicina and Evolve Credit playing in the space to understand in full the development of Lendsqr. All things being equal, Africa’s lending scene is about to blow up.
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Adedeji Olowe’s Vision for Financial Inclusion
He has grand plans for solving more than one problem of Nigerians. He dreams of building a school for intensive training in vocational studies and creative and tech skills in rural areas within Nigerian cities where indigents can study on scholarship.
On the premise that not everyone is fit for the walls of a tertiary institution, this he believes, everyone deserves a better life.
All of this-deep insight into both the challenges and opportunities in Fintech, strategic insight into how to integrate these advanced technologies-really builds value.
You will benefit from his insights as he gives examples of what can be realized and shows strategies for the future in most industries.
Even though, up until now, Africa has been very slow at implementing Open Banking regulations compared to other developing markets, he feels it is time for the region to catch up with its European and Asian counterparts.
Adedeji Olowe: A Leader Shaping Africa’s Fintech Landscape
Adedeji Olowe has been instrumental in Africa’s Fintech space, most recently with Lendsqr and Open Banking Nigeria.
Being the founder of Lendsqr, a company providing much-needed infrastructure to lenders so they can offer loans in a far more efficient manner, especially to small businesses and individuals, he is addressing a very critical gap in credit access.
His engagement with Open Banking Nigeria has been seminal for the opening up of the financial system to create an open financial system that will drive transparency, competition, and innovation across the continent.
Olowe’s work has not only made more people gain access to finance but also inspired fintech startups to leverage technology to ensure inclusive and accessible financial services.
He leads the development of standardized frameworks in open banking, thus setting up a foundation that will ensure more integrated, secure financial transactions and, therefore, a thriving digital economy in Africa.
Through strategic vision and advocacy for fintech advancement, Olowe remains instrumental in shaping the face of African finance and opening up opportunities to millions of under-served Africans.
FAQs
What is Adedeji Olowe’s key contribution to fintech?
He founded Lendsqr and co-founded Open Banking Nigeria, expanding credit access and fostering fintech innovation through open banking.
How does Lendsqr impact financial inclusion?
Lendsqr provides lending infrastructure, helping institutions offer secure loans to underserved small businesses and individuals in Nigeria.
What role does Olowe play in Open Banking Nigeria?
As a trustee, he supports creating a transparent, competitive fintech ecosystem by enabling secure data sharing between financial institutions.
What problems does Lendsqr solve?
Lendsqr simplifies lending, helping institutions serve more borrowers and expand credit access in Africa’s underserved markets.
Conclusion
Adedeji Olowe’s contributions to Africa’s fintech ecosystem have been transformative, particularly in advancing credit access and fostering financial inclusion.
Through his work with Lendsqr and Open Banking Nigeria, he has helped bridge the gap between traditional financial institutions and underserved populations, making credit more accessible to small businesses and individuals.
His vision for a more transparent, interconnected financial system continues to inspire innovation across the continent.
By championing open banking and scalable lending solutions, Olowe is driving Africa’s fintech sector toward greater inclusivity, efficiency, and growth, positioning it for long-term economic development.
