A new study from Visa, the SME Megatrends report, has revealed the ever-evolving financial landscape for Small and Medium Enterprises (SMEs) in Nigeria. The report identifies significant opportunities for growth and innovation, particularly in the digital and financial domains, with clear insights that can be leveraged by issuing banks to unlock new revenue opportunities and gain a competitive edge.
Businesses in Nigeria are in the midst of significant transformation, as high internet and social media penetration incentivises SMEs to build an online presence and growing e-wallet use spur digitalisation.
This is creating a latent demand for SMEs to develop online presence and ecommerce capabilities to reach new customers, with a need for robust and simplified tools to enable access.
However, SMEs remain underfunded and underbanked, requiring access to formalised credit to expand businesses and meet day-to-day cashflow constraints.
Rapid digital acceleration in Sub-Saharan Africa’s SME sector presents a wealth of new revenue opportunities for issuing banks who, by facilitating access to essential financial products and services, can tap into this potential, leading to an expanded customer base, increased transaction volumes and heightened revenue prospects within the digital payments landscape.
By working in partnership with Visa, issuing banks can deliver bespoke financial products tailored to SMEs’ unique needs to promote inclusive economic growth actively.
Mr Andrew Uaboi, Vice President and Head of Visa West Africa, remarked, “At Visa, we are dedicated to empowering issuing banks to tap into the vast potential of SME financing, focusing on bridging the critical funding gaps that impede SME growth, an approach that involves transforming challenges into tangible opportunities.
“We are confident that the insights provided by the SME Megatrends report will empower banks to enhance their services. Through strategic partnerships with these banks, we aim to offer the essential resources required to develop tailored financial solutions that meet the specific needs of SMEs.”
The Visa SME Megatrends report serves as an indispensable tool for issuers to better understand SME needs while identifying actionable strategies to customise their offerings for the market segment.
The report reaffirms Visa’s commitment to expanding SMEs’ access to the digital economy, fostering a resilient and mutually beneficial business environment for all stakeholders.
ALSO READ: One year after, Nigeria not working under Tinubu — Atiku
and then