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  • Tech - News - Startups
  • Updated: June 15, 2021

Demand for Loan and Investment Apps Surge As Nigeria Leads Africa's Fintech App Installs

Demand for Loan and Investment Apps Surge As Nigeria Leads A

Nigeria's fintech space is recording tremendous growth as digital transformation has found a solid footing in the country. Africa's largest economy reportedly had the highest number of fintech app installations in the continent in the last year.

This is according to the new State of Finance App Marketing Report by AppsFlyer, the global marketing measurement leader.

According to the report, fintech app installation saw impressive growth of 160% from the numbers in the second quarter in 2020.

Mobile apps played a key role in fintech transformation across the globe, especially in regions with unbanked or underbanked populations. 

fintech apps installationIn Nigeria alone, loan app installations grew by 43.3%, financial services grew by 34.6%, and investment apps by 20.3%. This shows that Nigerians are more interested in loan and investment apps than any other type of fintech app.

The growth was, however, not peculiar to Nigeria as other countries in the sub-Saharan African region also witnessed impressive growth. Kenya recorded a growth of about 100% while fintech app installations in South Africa saw a 52% rise during the same period.

Another factor for the rise in fintech app installation is marketing. Since Q2 2020, when COVID lockdowns began, the number of finance apps investing in marketing increased in all regions. Market spending in Nigeria rose the highest to 150% since the second quarter of 2020. The country’s Cost Per Install (CPI) was up 70% since Q2 2020, leading to a spike in spending.

Financial activity which initially fell at the beginning of the pandemic later transformed into a boom as finance app installs pointed up in H2 2020 and continues to bear fruit well into the first quarter of 2021.

Particularly, in Nigeria, the large population of unbanked (56%) and the tough regulatory conditions pushed a large number of people to turn to apps to take out loans as well as explore other financial services.

fintech market dataThe demand for finance apps is spiraling out of control, not just in Africa but across the globe, experiencing a 132% leap in global downloads in the last two years. 29 of the top 40 finance markets (by app installs) enjoyed growth of at least 20% YoY. However, it was the developing markets that dominated the number of installs.

Top fintech markets

 

 

Finance apps were downloaded 4.6 billion times in 2020 (+15% YoY), according to AppAnnie. App marketers are following suit, upping their investing to meet the heightened demand. However, for countries like Nigeria where regulations often change, it’s important for FinTechs to be flexible and innovative to stay at the head of the curve.

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