Embedded Finance in Nigeria – What Every Bank-Fintech Partnership Needs
By integrating financial services products into non-financial platforms and business models, embedded finance is changing the Nigerian financial services landscape faster than the regulatory and legal frameworks that govern it. Several banks are distributing financial products through digital channels using FinTech. The fintechs are leveraging bank APIs to deliver services that were once available only to licensed financial houses. Retailers, logistics companies and software companies are integrating payments, lending and insurance into their customer experiences.
This has huge commercial potential. Legal risks are also real and not adequately managed in most bank-finance partnership arrangements we review. Five key legal requirements that every embedded finance partnership in Nigeria must meet before the arrangement goes live are laid out in this article.
