Exploring fintech as a driver of innovation and the sustainable development goals

Innovation methods

Data sources

SDG(s)

Sustainable Development Goal(s)

1No poverty

9Industry, innovation and infrastructure

10Reduced innequalities

Disclaimer:

Please be aware that the content herein has not been peer reviewed. It consists of personal reflections, insights, and learnings of the contributor(s). It may not be exhaustive, nor does it aim to be authoritative knowledge.

Title

Please provide a name for your action learning plan.

Exploring fintech as a driver of innovation and accelerator for achievement of the sustainable development goals.

Challenge statement

Challenge type: If you are working on multiple challenges, please indicate if this is your "big bet" or "exploratory" challenge. Please note: we ask you to only submit a maximum of 3 challenges - 1x Big Bet, 2x Exploratory. Each challenge must be submitted individually.

EXPLORATORY

Challenge statement: What is your challenge? (Please answer in specific terms: "Our challenge is that...”.)

Our challenge is to explore the opportunities and potential of the massive fintech ecosystem in Nigeria as a driver of innovation and to accelerate achievement of the SDGs.

Background: What is the history of your challenge? What is causing or driving it? Who is involved? How does the current situation look like? What undesired effects does it produce?

The fintech sector has grown massively in Nigeria over the the last 6 years, increasing the range of services offered, and access to financial services. Fintechs have tapped into pent-up demand to the underserved middle class and urban residents. This sector has also seen significant foreign direct investment, about $800m in 2021 and has continued to grow consistently while the larger economy declines. However over half of the adult population is still unbanked and many services are concentrated in urban areas. Areas with limited access to financial services also tend to be areas with multiple high indicators of deprivation. The challenge is to see what opportunities exist to harness the growth and innovation in this sector for wider development.

Quantitative evidence: What (official) data sources do you have on this challenge that better exemplifies the importance and urgency of this frontier challenge? You can add text, a link, or a picture.

https://businessday.ng/financial-inclusion/article/facts-behind-financial-inclusion-figures-nigerias-2021-indices/

Qualitative evidence: What weak signals have you recently spotted that characterizes its urgency? Please provide qualitative information that better exemplifies the importance and urgency of this frontier challenge. You can add text, a link, or a picture.

https://theconversation.com/nigeria-will-have-to-dig-deep-to-overcome-entrenched-patterns-of-poverty-177855

Value proposition: What added value or unique value proposition is your Accelerator Lab bringing to solving this challenge? Why is it your Lab that needs to work on this challenge and not other actors within UNDP, other stakeholders in the country respectively? Why is it worth investing resources to this challenge?

It is worth investing in this challenge to promote digital and financial inclusion and expand the range of opportunities available to multiply excluded groups. The Accelerator Lab needs to work on this challenge, because of its familiarity with the innovation ecosystem built through engagements and partnerships.

Short “tweet” summary: We would like to tweet what you are working on, can you summarize your challenge in a maximum of 280 characters?

The Lab is investigating how it can harness innovation and fintech to accelerate the SDGs.

Challenge classification

Partners

Who are your top 5 partners for this challenge? Please submit from MOST to LEAST important and state Name, Sector and a brief description of the (intended) collaboration.

Please state the name of the Parter:

Innovators in the Financial Services space

What sector does our partner belong to?

Private Sector

Please provide a brief description of the collaboration.

We will work with a range of innovators to help us better the understand the dynamics in this sector and inherent opportunities.

Is this a new and unusual partner for UNDP?

Yes

Who are your top 5 partners for this challenge? Please submit from MOST to LEAST important and state Name, Sector and a brief description of the (intended) collaboration.

Please state the name of the Parter:

Networks of typically excluded demographic groups.

What sector does our partner belong to?

Private Sector

Please provide a brief description of the collaboration.

We aim to create platforms where innovators in the fintech space and underserved groups can engage, share and scan opportunities that serve them.

Is this a new and unusual partner for UNDP?

Who are your top 5 partners for this challenge? Please submit from MOST to LEAST important and state Name, Sector and a brief description of the (intended) collaboration.

Please state the name of the Parter:

Fintech Regulatory bodies

What sector does our partner belong to?

Government (&related)

Please provide a brief description of the collaboration.

There are about 9 regulators of the Nigerian fintech regulatory system; the Central Bank of Nigeria, Securities and Exchange Commission, Nigerian Deposit Insurance Corporation, National Office for Technology Acquisition and Promotion among others. We aim to engage these players on frameworks and practices to protect innovators and consumers in this space.

Is this a new and unusual partner for UNDP?

Learning questions

Learning question: What is your learning question for this challenge? What do you need to know or understand to work on your challenge statement?

How can we increase access to underserved communities? How can we leverage the digitalisation and infrastructure that is required for these services for other socioeconomic benefits? What role can policymakers and regulators play in this?

To what stage(s) in the learning cycle does your learning question relate?

Sense, Explore

Usage of methods: Relating to your choice above, how will you use your methods & tools for this learning question? What value do these add in answering your learning question?

These methods will help us understand how the services fintechs offer are evolving and where there are opportunities to plug this into wider development initiatives.

Existing data gaps: Relating to your choice above, what existing gaps in data or information do these new sources of data addressing? What value do these add in answering your learning question?

These data sources will help us understand some of the gaps which exist in underserved markets, how and if innovators are engaging these groups, and how these engagements can be mutually beneficial.

Closing

Early leads to grow: Think about the possible grow phase for this challenge - who might benefit from your work on this challenge or who might be the champions in your country that you should inform or collaborate with early on to help you grow this challenge?

State Government parastatals that promote attainment of the SDGS and innovation networks across the country could be key champions of this challenge.

END OF ACTION LEARNING PLAN: Thank you! The form saves automatically and your submission has been recorded. You may now exit this window.

Innovation methods

Data sources

SDG(s)

Sustainable Development Goal(s)

1No poverty

9Industry, innovation and infrastructure

10Reduced innequalities

Comments

Action plan