• Tuesday, April 23, 2024
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Digital savings growing in Nigeria — Fintech

Global fintech funding dipped by 16% in Q1 2024 — Report

There has been a surge in the adoption of digital savings in the country, Cashbox has disclosed.

This is as the fintech announced a 150 percent growth in its user base in the last 22 months. The digital savings and investment platform disclosed this during its fifth-anniversary celebration. It stated that its user base surged from 10,000 to 500,000 individuals in 2023 and noted that this increase indicated a surge in the adoption of digital savings.

Sydney Aigbogun, the Chief Executive Officer of Cashbox, also revealed, at the event, that savings on the firm’s platform have grown to N50 billion.

Read also: CashBox sees 40% rise in digital savings as it plans life in wealth management

“With over 200,000 successful deposit transactions monthly, and a growing user base, we are witnessing a steady rise in our platform’s popularity,” Aigbogun stated.

The firm noted that it has seen a shift in its user demographics over the past five years, with its platform achieving a more balanced gender distribution. It highlighted that most of its users reside in Lagos.

Looking ahead, Aigbogun outlined the firm’s plans for 2024, aiming to extend its reach to users in other Nigerian states. He noted that despite challenges posed by the devaluation of the naira in 2023, Cashbox has remained resilient and innovative.

He added, “We remind ourselves that we haven’t raised any funds from investors, so we do not have room for trial and error. We achieve what others spend millions on with less than N500,000.”

According to a 2022 International Monetary Fund (IMF) working paper, Nigeria ranked 11th in the sub-Saharan region for private savings.

42 percent of Nigerian households during the pandemic disclosed that their source of financing was their savings, the IMF noted.