The untapped opportunity in institutional partnerships for financial inclusion

For decades, conversations around financial inclusion in Nigeria have focused heavily on technology. Mobile banking, fintech applications, agent banking and digital wallets have become the dominant narratives. While these innovations have undeniably expanded access, they have also created a blind spot in the wider ecosystem. One of the most powerful yet underutilised pathways to sustainable financial inclusion lies not only in technology but also in institutional partnerships.

Nigeria has made measurable progress in financial inclusion over the last few years. According to the 2023 Access to Finance Survey by EFInA, formal financial inclusion rose from 56 percent in 2020 to 64 percent in 2023, while financial exclusion declined from 32 percent to 26 percent within the same period. Yet approximately 28.8 million adult Nigerians remain financially excluded.

This reality presents both a challenge and a massive opportunity. The next phase of inclusion growth will not come solely from opening more bank accounts or launching more apps. It will come from embedding financial services within trusted institutional ecosystems that Nigerians already interact with daily. Pension funds, insurance firms, cooperatives, trade associations, religious organisations, employers, agricultural unions and community networks can become powerful distribution channels for inclusive finance.

Why Institutional Partnerships Matter

Institutional partnerships matter because they solve one of the biggest barriers to inclusion, which is a trust deficit. Across many underserved communities, there remains significant skepticism toward formal financial systems. Some Nigerians still associate banks and investment products with hidden charges, bureaucracy or exclusionary requirements. EFInA data shows that affordability concerns and lack of transparency around charges continue to discourage usage of formal financial services.

However, people often trust the institutions closest to their realities. A cooperative society that has supported market women for years already has social credibility. A pension administrator managing long-term savings relationships already has financial behavioural data and customer confidence. An insurance firm embedded within a healthcare ecosystem already understands risk patterns among underserved populations.

Cooperatives as Engines of Inclusion

Across Nigeria, millions of people already participate in informal savings groups, thrift collections and cooperative societies. These structures have historically functioned as community-driven financial systems long before digital finance became mainstream. Yet many remain disconnected from formal investment products, insurance coverage and structured credit systems.

By partnering with cooperatives, asset managers and financial institutions can extend professionally managed savings products, micro-investment opportunities and financial literacy programmes directly into grassroots communities. More importantly, these partnerships can create financial products designed around the realities of informal income earners rather than forcing underserved populations into rigid traditional banking models.

Unlocking the Pension Opportunity

Nigeria’s pension industry has grown significantly over the years, with pension assets crossing ₦20 trillion. However, pension participation remains concentrated within the formal workforce, leaving millions of informal sector workers outside the system. This gap presents one of the biggest untapped opportunities for inclusion.

Strategic collaborations between pension fund administrators, fintech firms, cooperatives and employers can bridge this divide. Micro-pension schemes targeted at artisans, traders, transport workers and small business owners can become more scalable when distributed through trusted associations and organised groups. Rather than marketing retirement products individually, institutions can leverage existing communities, collaborating to provide synergised products that offer prospective retirees an extensive suite of financial support, ranging from pensions, to trusteeship, estate planning and insurance.

Data, Trust and Customer Intelligence

Another critical advantage of institutional partnerships lies in data and behavioural intelligence. Financial inclusion is not simply about access. It is about designing products that people will consistently use. Institutions such as pension firms, cooperatives and employers possess deep insights into income patterns, savings behaviour and financial priorities within their communities.

When leveraged responsibly, this intelligence allows providers to move beyond generic financial products toward solutions that are personalised, affordable and relevant. The result is stronger adoption, higher retention and deeper inclusion.

The Gender Inclusion Imperative

There is also an important gender dimension to this conversation. Women remain disproportionately represented among financially excluded populations. Research continues to highlight significant gaps in women’s economic empowerment and access to financial tools.

Institutional partnerships can play a critical role in closing this gap. Women-led cooperatives, market associations and community groups provide ready-made channels for delivering targeted savings, credit and insurance products tailored to female entrepreneurs and low-income earners. Inclusion efforts become more effective when designed within structures women already trust and participate in.

Beyond access, these partnerships can also support financial education, business growth and long-term wealth creation for women-led enterprises that often struggle to secure formal financing.

Moving from Transactions to Ecosystems

For institutional partnerships to truly unlock inclusion at scale, collaboration must move beyond superficial branding exercises. Too often, partnerships are announced without meaningful integration or long-term commitment. Sustainable impact requires shared incentives, aligned objectives, interoperable systems and customer-centric design.

Regulators also have an important role to play. Policies that encourage interoperability, simplify onboarding requirements and support innovation across sectors will strengthen partnership-driven inclusion models. Financial literacy initiatives must equally evolve from one-size-fits-all campaigns toward community-based education embedded within trusted institutions.

The Road Ahead

Nigeria’s financially excluded population should not be viewed merely as an untapped market. They represent untapped economic potential. Every trader without access to structured savings and investment, every farmer without insurance protection, every artisan excluded from retirement planning and every woman unable to access affordable credit represents lost productivity within the wider economy.

Institutional partnerships provide an opportunity to change this reality, at scale.

The next frontier of financial inclusion in Nigeria will not be won only through apps, algorithms or branch expansion. It will be won through strategic partnerships that transform existing social and economic networks into engines of inclusive growth. The opportunity is no longer just about reaching more customers. It is about building stronger ecosystems that create sustainable economic participation for millions of Nigerians currently left at the margins of the financial system.

Toyin Owolabi is MD/CEO, FSDH Asset Management