A Millennial and Gen-Z Banking Survey Report has identified high-interest rates and bank charges as challenges for young people to participate in Nigeria’s financial sector.
The report titled ‘Tapping the Millennial & Gen Z Markets: Redefining Opportunities for Financial Services Growth’ was conducted by the Financial Institutions Training Centre (FITC).
Speaking during the launching of the report during the weekend in Lagos, the Managing Director of the FITC, Ms. Chizor Malize said that the report was aimed at enabling banks to have an understanding of the emerging financial sector in the country.
Malize said that rapid changes have occurred in the financial sector with the advent of FinTech in the country.
She explained that with the Millennial and Gen-Z dominating the FinTech sector, financial institutions in the country needed to understand the perception of young Nigerians.
The report provided insights on how Millennial relate to financial institutions, their expectations from their banks and other financial service providers, the kind of services they want, and the
kind of value-added solution they expect.
What The CBN Says Given the dynamism of the FinTech industry and increasing sophistication of Nigeria’s teeming youths, it has become pertinent for financial institutions to understand and adopt technological innovations and financial strategies that meet the needs of young people.
“A lot has happened in the industry and there has been a lot of transformation, a lot of innovation, and digital technology has come into change the way financial services are delivered. Also, most importantly to change the way people and different segments use financial
services. And that is why this report is important because it focuses on a very important and strategic segment for banks and nonbank financial institutions and that is the millennials and Gen-Z,” the CBN said through the Deputy Governor, Financial System Stability, Ms. Aisha Ahmad.
Ahmed, while during the Launch of the Millennial & Gen Z Banking Survey Report noted “Nigeria’s population is significantly youthful so this is a very huge target area for financial institutions.
“The report provides insights into the way they relate to financial institutions, their expectations from their banks and other financial service providers, the kind of services they want, and the
kind of value-added solution they expect.”Nigeria’s economy is heavily dominated by millennials, with about 75 percent of Nigeria’s population under the age of 35. Oftentimes, traditional financial institutions are accused of refusing to move with the emerging trends in their sector. With the rise of the FinTech Subsector, traditional banks now have close competition, with many of them, opting to move with the times and embrace financial technology in their operations.
According to a report by credolab, “Nigerian millennials are becoming a major force in the economy. The median age of the Nigerian population is 18 years, so tapping into this digitally
friendly consumer group may hold the key to a new generation of economic opportunity.