Smartphones have evolved beyond being basic communication devices—they are a gateway to a lifestyle enabling e-commerce, healthcare, financial services, etc., In Nigeria, where digital connectivity is pivotal in order to bridge the socio-economic gaps, access to smartphones is still a major barrier for many. Datacultr is playing a major part in overcoming the obstacle of affordability by providing innovative solutions to secure device financing and BNPL loans in Nigeria, enabling more Nigerians to access the technology they need to thrive in the digital economy.
The Challenges of Smartphone Affordability in Nigeria
Nigeria is home to over 232 million people with an urban population of 53.9%, and the smartphone penetration is expected to reach 60% by 2025, as reported by Statista. However, a considerable portion of the population still relies on feature phones or shared devices due to the high upfront costs even of entry level smartphones.
Key barriers include:
- Affordability: Naira metrics reports that a basic smartphone in Nigeria costs N25,000, or 37.46% of the average monthly income, compared to the global average of 20%. A 4G smartphone costs around N35,000, surpassing the N30,000 minimum wage.
- Credit Constraints: The absence of formal credit histories for a majority of the population limits access to traditional financing options.
- Lack of Innovative Solutions: Despite the availability of financing options like bank loans and Buy Now, Pay Later or PayGo programs, Nigeria’s financing industry still lacks widespread, scalable solutions altered to the unique needs of its population.
The Solution: Secured Device Financing To Enable Connectivity
Datacultr’s platform, which enables financial institutions and telecom operators to offer secured device financing, is addressing these challenges head-on, enabling telecom operators, retailers, and financiers to offer Nigerians affordable access to smartphones. By leveraging advanced strategies for risk management, Datacultr helps financiers in providing financing options, tailored to the unique needs of the Nigerian market.
How Datacultr is Making a Difference
Inclusive Credit Assessment: Datacultr’s platform offers banks and financial institutions a way to mitigate their risk while offering loans to credit dark segments. The platform can further help banks to analyze alternative data like payment behavior to create a credit profile for them and upsell other products as well.
Reducing Default Risks: Engaging with customers using innovative reminders and nudges ensure timely repayments while minimizing the risk of defaults. Datacultr’s device lock mechanism incentivizes borrowers to complete payments responsibly, increasing overall collection efficiency by 400% and reducing Non performing loans by 67%.
Building Trust: Authentic bank branded messaging helps the bank garner trust with the customer leading to better repayment numbers. Digital interactions like Promise to Pay, Digital Legal Notice, Digi Call, and skip tracing tools like MOD and LOD increase the overall collection efficiencies tremendously.
The Impact on Nigeria
Adopting flexible financing solutions can have transformative effects, including:
- Increased Smartphone Penetration: Statista reports, that smartphone penetration in Nigeria will reach 60% by 2025, creating significant growth opportunities for smartphone manufacturers.
- Boosting Economic Participation: With smartphones as enablers, more Nigerians can access government services, online jobs, e-commerce platforms, and digital learning resources.
- Advancing Financial Inclusion: Device financing fosters a culture of responsible borrowing, laying the foundation for broader credit access.
Real-World Success Stories
In markets like Ivory Coast, Kenya, Uganda, Tanzania, Philippines, Mexico, Columbia, and many more, Datacultr has already demonstrated the effectiveness of its platform. Applying this learning to Nigeria, Datacultr is confident in transforming the landscape of device financing in Nigeria, making smartphones accessible to all.
Closing Thoughts
As Nigeria continues to become a fully digital economy, overcoming affordability barriers through risk management and debt collection solutions like Datacultr’s is crucial. Datacultr is not just driving smartphone adoption but also making the way for inclusive growth.
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