Fintechs turn to Nigerian music artists to drive adoption

Risevest and Chipper Cash recently became the latest financial technology (fintech) companies securing the services of Nigerian music artists to grow adoption.

Chipper Cash announced the partnership with Burna Boy in October in a deal sources say could be worth $1 million while in November, Risevest got Teni Apata to sign the dotted lines for as much as $100,000.

Both deals signal a new era of publicity campaigns being pushed by fintech companies that seek to tap into the global popularity of Nigerian music icons. Davido and Bitsika, a payment company, may have taken things up a notch with the announcement of their partnership back in October 2020 and later in October 2021, Kuda Bank signed Fireboy as its ambassador.

Don Jazzy, Mavin Records CEO, announced an extension of his brand engagement with Nigerian digital bank, V Bank in December of 2020.

The music industry in Nigeria gains global appeal and attracts fans from different parts of the world who flock to the social media handles of the artists to express love and loyalty. In many cases, these artists’ lifestyles become reference points for fans who copy every move, step, and action. Brands around the world find this as an opportunity to showcase their products and services through enlisting the services of the artists as brand ambassadors. Nigerian fintech companies appear to be joining the party of brands chasing the signatures of popular music artists.

Maijid Moujaled, co-founder of Chipper, said this collaboration has become necessary as it expands its services beyond Africa. Also, Chipper is taking Nigerians living in the diaspora hence the partnership with Burna Boy is seen as part of a strategy to draw them to the platform.

“This will serve as a viable option for African creators to launch and get financial support for their work.” Maijid Moujaled said.

Read also: Why global music labels are expanding in Africa

Endorsement deals over the years have yielded commercial returns for endorsees in the financial, communication, fast-moving consumer goods, clothing, and smartphone sectors. Davido’s Martell blue swift deal is worth $1 million dollars and it’s among the top whiskey brands sold in Lagos nightclubs.

Last year, Globalcom doubled Wizkids’ N45 million MTN endorsement deal to land the singer on their side. The deal is set at N120 million which runs for 2 years. Other artists like Davido and Tiwa Savage have MTN deals worth N30 million each.

These top Nigerian artists have endorsement deals with other companies like Nike, Dolce, and Gabbana, Ciroc, UBA, Tecno, Puma, Infinix mobile, Pepsi, Close Up, pampers, Travelbeta, Martell Blue Swift, Forte Oil, and Maggi and all these endorsement deals put together are worth billions in the naira value.

“Teni sings about success, uplift, and having pride in where you’re from. She is an avid saver and investor and a huge fan of Rise. And her music resonates with everyone. That made it an easy decision to trust her with our message,” Eke Urum, Risevest CEO, said.