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Studies indicate that more than 70% of African adults face
challenges in obtaining loans from traditional banks due to insufficient credit
information, leaving them with limited options like seeking help from friends
and family or resorting to predatory loan sharks.
Since its establishment in 2022, Oystr has experienced
growth by forming strategic alliances with key industry players and financial
institutions, enabling the company to leverage advanced technology and acquire
necessary licenses that would have otherwise been out of reach.
Oystr Finance distinguishes itself in the competitive
financial technology sector by offering cutting-edge technology solutions and
catering to underserved populations, among other factors.
“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.
At present, the organization employs a group of eight
exceptional young professionals, all under the age of 25, who are enthusiastic
about the company's developments at Oystr.
In order to address the increasing inflation, the financial
technology specialist stated that the company is concentrating on enhancing the
robust credit scoring models, broadening loan portfolios, cost efficiency, and
streamlined 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.
“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.
When discussing the potential for the fintech sector in
Nigeria, she emphasized the importance of analyzing a range of economic,
demographic, and regulatory aspects within the Nigerian business landscape.
This includes examining factors like the expanding economy,
inflation rates, exchange rates, financial inclusion initiatives, and
compliance standards.
“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.
However, the company still faces obstacles amidst the
current economic conditions 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.
Oystr Finance has effectively overcome these substantial
challenges by employing strategic methods and creative resolutions.
“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.
The company has also implemented alternative strategies such
as ensuring transparent communication regarding the functionality and
advantages of its technology. This entails simplifying intricate technical
details and offering easily comprehensible explanations to customers.
Additionally, they have established a customer education
initiative and workshops to assist prospective clients in comprehending and
trusting new technologies. These resources include webinars, online classes,
and face-to-face seminars.
Lawal advises aspiring fintech entrepreneurs to avoid
overanalyzing or presuming what a customer desires. Instead, she emphasizes the
importance of concentrating on fulfilling customer wants rather than needs.