Managing Director of Nombank, Seun Osunkeye.
Nombank, the banking subsidiary of Nigerian fintech Nomba, is seeking to expand its share of the country’s small business banking market by using merchant transaction data to extend credit and offer banking products to businesses that have traditionally struggled to access financing through conventional lenders.
The strategy comes as lenders compete to serve Nigeria’s millions of micro, small and medium-sized enterprises, many of which remain excluded from formal credit despite accounting for a significant share of economic activity. Banks have historically relied on collateral, audited financial statements and lengthy documentation, requirements that many small businesses are unable to meet.
Managing Director of Nombank, Seun Osunkeye, said the lender aims to bridge that gap by using transaction data generated through Nomba’s payments platform to assess the financial health of merchants and tailor lending decisions to their business activity.
“My interest in this space goes back to my undergraduate thesis, where I examined how microfinance banks support SMEs and how access to capital determines whether a small business survives or grows,” Osunkeye said in a note shared with The PUNCH.
