Ifedolapo Lawal is the founder and CEO of OystrFinance, a fintech company that provides the lending infrastructure that powers micro-lending products and services on the continent.
Lawal, a graduate of Accounting from Caleb University and an MBA from San Francisco Bay University established Oyster in March 2022 with an initial capital of $25,000 to increase access to affordable credit for millions of underserved Africans.
“I’m passionate about building technology solutions that can positively impact the lives of millions of underserved Africans,” she said.
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The vision of Oystr according to the fourth-time founder and an international business manager is to increase accessibility rates to affordable credit by millions of underserved people across the continent.
Research has shown that over 70 percent of African adults cannot access loans through their banks due to lack of credit data and so the only alternative they have is either their friends and families or loan sharks that take advantage of them.
Since our inception of Oystr in 2022, the firm has grown through strategic partnerships with industry players and financial institutions, which have helped it access technology and licenses that it otherwise would not have been able to.
Oystr Finance stands out in the competitive landscape of financial technology startups due to several key differentiators such as advanced technology platforms and focuses on underbanked populations, among others.
“Our cutting-edge technology platform is specifically designed to streamline the entire loan processing lifecycle, from application through disbursement and repayment. This ensures a seamless, transparent, efficient system that enhances user experience and operational efficiency.
“Oystr Finance is committed to addressing the needs of underbanked African adults. By providing financial services to those often overlooked by traditional banks, we contribute to financial inclusion and economic empowerment,” she said.
“Unlike many startups that focus on specific segments of the financial process, Oystr provides a comprehensive solution that encompasses the entire spectrum of micro-credit products and services. This holistic approach ensures our clients receive a cohesive and integrated financial experience,” Lawal added.
Currently, the company has a team of eight young amazing individuals, all fewer than 25 who are passionate about what the firm is building at Oystr.
To combat the accelerating inflation, the fintech expert said the company is focused on optimising the strengthened credit scoring models, diversifying loan portfolios, cost optimization, and lean operations.
“Optimising credit scoring models will enhance the credit scoring algorithms to account for inflation-induced financial stress among borrowers, ensuring that risk assessments are accurate.
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“We will also reduce risk by diversifying loan portfolios across different sectors, regions, and borrower profiles, and conduct regular audits to identify and eliminate inefficiencies in operations, among others,” she said.
Speaking on the opportunities for the fintech industry in Nigeria, she said the business environment in Nigeria, particularly for the financial technology sector, involves analysing various economic, demographic, and regulatory factors.
Here’s a comprehensive evaluation and identification of opportunities in the industry such as growing economy, inflation, and exchange rates; financial inclusion, and compliance requirements.
“Despite challenges, Nigeria remains one of the largest economies in Africa, driven by a diverse array of industries including oil and gas, agriculture, and services.
“High inflation and volatile exchange rates can affect consumer purchasing power and the cost of doing business. However, fintech can provide solutions to mitigate these challenges,” she noted.
In addition, she said; “A significant portion of Nigeria’s population remains underbanked, presenting a substantial market for fintech solutions. Navigating regulatory requirements is crucial, including know-your-customer, and anti-money laundering regulations.”
Lawal disclosed that her expansion includes leveraging the Timbuktoo platform to penetrate other African countries.
“Thanks to the UNDP and the Timbuktoo programme we are considering the idea of expanding to four other African countries before the end of the year. Malawi, Botswana, Mozambique, and Kenya, and we will be exploring a partnership with Access Bank to facilitate this,” she said.
Nevertheless, the company is not without challenges in the face of the prevailing economic landscape in Nigeria.
“One of the major challenges has been navigating the regulatory landscape in different countries. Each market has its own set of regulations, which can be complex and time-consuming to comply with. Additionally, building trust with potential clients who are often wary of new technologies has been a hurdle. Lastly, securing funding in the early stages was challenging but essential for our growth,” Lawal said.
However, Oystr Finance has successfully navigated these significant challenges through strategic approaches and innovative solutions.
“Collaborating with local legal and regulatory experts has been crucial. These partnerships help Oystr navigate the complexities of different regulatory environments efficiently.
“Leveraging regulatory technology (regtech) tools to automate compliance processes has significantly reduced the time and effort required to meet regulatory standards. This includes automated KYC (Know Your Customer) and AML (Anti-Money Laundering) checks,” she said.
Other approaches adopted by the company include; clear or transparent communication about how its technology works and the benefits it offers. This involves simplifying complex technical information and providing clear, understandable explanations to clients.
Besides, it has in place a customer education programme, and workshops to help potential clients understand and trust new technologies. This includes webinars, online courses, and in-person seminars.
Lawal would want upcoming fintech entrepreneurs to never overthink or assume what a customer wants. As entrepreneurs, she said young entrepreneurs need to focus on what a customer wants, not what they need.
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