Speed is a competitive advantage in Nigeria’s $2.1 billion digital lending market. Fintech lenders promise approvals in minutes, using automation to move borrowers from application to disbursement with as little friction as possible.
However, Nombank, the microfinance banking subsidiary of Nigerian fintech Nomba, has taken a different approach after securing its licence in December 2024.
Rather than approving loans within minutes, the lender said it deliberately takes between 24 and 48 hours to make a credit decision.
Payment data powers much of its underwriting, but account officers still verify merchants before any loans are approved, sometimes through physical visits. That slower process, the bank says, has helped it keep its non-performing loan ratio below 1%, well below the banking industry’s average of 8%.
“We want to give loans that will truly come back,” Seun Osunkeye, Nombank’s managing director, told TechCabal in an interview. “Most importantly, we are interested in businesses growing, merchants growing, and everyone being happy.”
