Financial Inclusion is not a Mobile App

Muideen Abubakar

Nigeria’s fintech revolution has delivered impressive headlines. Venture capital has run over multi-billions over the last decade, 4 unicorn valuations (as of 2024), and sleek mobile apps promise to bring banking to everyone’s fingertips. The Fintech innovation has transformed how people send money, pay bills, and access loans. From mobile wallets to agent banking, we are told a story of digital progress. Yet a fundamental disconnect remains: while smartphone penetration grows, true financial inclusion lags significantly behind. The harsh reality? Nearly 40% of Nigerian adults remain completely unbanked (EFInA), with millions more underserved despite our digital transformation. If access was the problem, and apps were the solution, why hasn’t the problem been solved?

As both a technologist and policy advocate, I’ve observed a dangerous oversimplification: the notion that financial exclusion is primarily a technology problem. This perspective leads to an endless cycle of apps that serve the already-banked urban middle class while failing to address the complex barriers keeping millions in the informal economy – we have mistaken technology for inclusion. Real financial inclusion is not a mobile interface; it is a complex, multi-dimensional challenge that extends far beyond code and capital. It involves trust, literacy, infrastructure, culture, and regulation. And unless we confront these foundations directly, we will keep building elegant apps on broken systems.

On paper, mobile penetration in Nigeria is impressive. According to NCC data, over 224 million active mobile lines existed as of Q4 2023. But phone ownership does not equal digital fluency. Millions of Nigerians share phones, use feature phones without internet, or lack the confidence to transact beyond USSD codes – consider the rural farmer who has access to mobile banking but lacks the digital literacy to navigate complex interfaces. Meanwhile, the gender gap in digital usage is staggering—women are 28% less likely than men to own a smartphone, according to GSMA. Even when mobile banking is available, it’s not necessarily usable.

Then there’s the question of trust. Informal savings schemes like ajo or esusu continue to thrive, not because people are anti-tech, but because they are pro-trust – consider the informal trader who maintains a cash-only business not from lack of smartphones, but from rational mistrust of systems that haven’t proven their value. Fintechs that fail to understand this dynamic often experience churn or dormancy—even after millions are spent acquiring users. These challenges cannot be solved with better UX design or faster payment processing alone. They require coordinated efforts across some critical dimensions discussed hereafter.

For inclusion to be achieved in the real sense of its meaning, it must be designed, not downloaded. That is, if we truly want to include the excluded, our interventions must start from the bottom up—not from a product demo, but from people’s realities. It is worth emphasizing that digital literacy is as important as digital technology. Hence, digital literacy programs must be embedded into school curricula and community centres. Fintech ventures could allocate resources to context-appropriate education, from radio programming in local languages to community ambassadors who demonstrate tangible benefits. Financial education must precede or accompany financial technology—not follow it as an afterthought. This will help to tackle some of the foundational issues from the grassroots. Furthermore, in a multi-lingual country like Nigeria, with some who can’t read or write, a multi-language voice-first fintech interface will truly drive the desired form of inclusion. Likewise, product designs have to be intentional, reflecting concepts that would appeal to those truly intended to be included. For instance, a gender-intentional design that reflects how women save, borrow or earn has a stronger potential of converting women who were hitherto excluded as users.

On the policy front, progressive regulatory frameworks must balance innovation with protection. Nigeria’s regulatory sandbox approach shows promise, but more is needed. Financial inclusion zones with modified KYC requirements for low-risk accounts could dramatically expand access. Government procurement policies should prioritize vendors who serve marginalized populations. Also, tax incentives could reward financial service providers who demonstrably increase inclusion metrics in underserved regions.

For an organic inclusion to be achieved, the technology needs to meet people where they are – true innovation adapts to existing behaviours rather than demanding radical change. USSD banking succeeded precisely because it worked with feature phones already in people’s hands. Voice-based interfaces, offline capabilities, and interoperability with informal financial networks represent the frontier of inclusion—not merely slicker apps.
Nigeria stands at a crossroads. We can continue the current path of flashy innovation that primarily serves urban elites, or we can pioneer a holistic model of financial inclusion that addresses the actual barriers keeping millions in the economic shadows. The choice will shape not just our financial landscape, but our society’s trajectory for decades to come.
The future of financial inclusion isn’t only mobile apps. It’s a comprehensive ecosystem where technology, policy, education, and data infrastructure converge to create truly accessible economic opportunities for all.

Muideen Abubakar is a data expert and writes about fintech, digital infrastructure and policy.