Remita, a trailblazer in Nigeria’s payments industry, urges fintech companies to embrace Artificial Intelligence to claim their share of a $434.4 million market expected by 2026, with an impressive annual growth rate of 44.2 percent.
The organization’s latest publication, “Unlocking the Power of AI in Nigeria’s Fintech Sector,” released on Wednesday, positions artificial intelligence as crucial for driving significant growth within the sector.
The report encourages fintech companies to leverage AI’s capabilities—improving processes, boosting decision-making, and combating fraud—to guarantee their success in an industry that attracts 52 percent of Africa’s fintech investment and houses five out of its nine unicorns by 2024.
“Embracing adoption is crucial for positioning companies for expansion,” the statement read, presenting AI integration as an indispensable move towards building resilience and fostering innovation.
A division of SystemSpecs Holdings called Remita has significantly influenced Nigeria’s payment ecosystem, particularly through initiatives like the Treasury Single Account. Currently, it is mobilizing the sector to capitalize on an emerging market opportunity that has the potential to transform financial services.
In 2024, Nigeria witnessed a 16.7 percent increase in digital transactions, reaching 11.2 billion, with a total value of $713 billion (N1.07 quadrillion). The report suggests that this growth might be further enhanced by artificial intelligence.
The notification arrives as financial inclusion has surged from 32 percent in 2012 to 64 percent in 2024, largely due to fintech companies. However, Remita cautions that without incorporating AI, businesses might miss out on the upcoming advancement.
The report emphasized, “Never before has the urgency been more critical.” It highlighted an expected surge that would offer increased accessibility and stronger operations within a digital economy grappling with inflationary pressures.
The Managing Director of Remita, DeRemi Atanda stated, “Over the years, fintech in Nigeria has been characterized by significant aspirations and consistent implementation, however, the upcoming stage of growth demands greater strategic insight, with AI being pivotal to unveiling further potential.”
The future belongs to those who know how to utilize the power of emerging technologies such as AI. The debate has shifted from whether we should embrace AI to figuring out how we can implement it effectively for optimal outcomes.
The latest report from Remita serves as an extensive manual for fintech companies, regulatory bodies, and market participants, detailing crucial steps required for embracing AI technology. This document outlines AI transition tactics for fintech firms based on Remita’s own experience with implementing artificial intelligence.
The report outlined a structure for collaborative regulation aimed at maintaining the ethics, transparency, and security of AI-driven financial services. It also provided guidance on preparing the workforce for AI readiness, assisting teams in developing the necessary skills and knowledge to propel AI-fueled fintech advancements.
The Chief AI Officer at Remita, Uchenna Okpagu stated, “AI ought to act as a force multiplier rather than merely being an individual suite of features. Financial technology companies that integrate AI deeply into their core operations to enhance security, expandability, and business insights will lead the way in shaping the next ten years of financial evolution.”
Similarly, implementing AI isn’t merely about possessing cutting-edge tech or following current fads; it demands meticulous, organized deployment, thorough risk evaluation, and a dedication to ethical advancement.
Leading the way in payments and digital finance, Remita isn’t merely integrating AI—it’s setting benchmarks for how artificial intelligence should be incorporated into fintech. This approach aligns with the firm’s ambition to stay ahead in fintech advancements, promoting progressive solutions designed to strengthen capabilities for enterprises, administrations, and citizens alike.
The direction of fintech’s evolution will be determined by individuals who develop with purpose, implement with accuracy, and adjust to the truths of an AI-dominated landscape, as stated in the report.
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