It is estimated that over 350 million adults across Africa are excluded from formal banking systems and the numbers are climbing annually, further widening the financial inclusion gap in the continent.
Credit models typically utilized by traditional financial institutions often rely heavily on conventional credit scores, which tends to deny these individuals the opportunity to get capital or even improve their financial identities.
Now, credit models such as crypto-backed lending are closing this gap as individuals can access capital using their digital assets as collateral, which is a promising alternative, but its success hinges on solutions designed for Africa’s unique realities.
Chidinma Ndego, a product leader, agrees with this assertion in her white paper, Unlocking Opportunity. In her white paper, the author states that “The traditional lending system is typically biased against individuals that are outside formal banking, as these people usually do not have a good credit score.”
Chidinma Ndego has achieved remarkable success in scaling Fintech solutions across Nigeria and the UK.
She has made her mark in boosting digital loan disbursements by 50% through user-centric redesigns and increasing savings retention by 30% via behavioural nudges.
There are vast opportunities for crypto lenders in Africa but designing effective crypto-lending that will be embraced by Africans outside the formal banking systems may require contextual awareness.
If the interface is too complex or complicated to understand and navigate, it might alienate first-time users while the volatility of cryptocurrencies can heighten anxiety among low-income earners.
According to Chidinma Ndego, simplicity and transparency in every transaction is non-negotiable as she said “Every successfully repaid loan became a verifiable data point within a user’s profile”.
Collateralized lending, that can be done from anywhere can transform isolated transactions into building blocks for financial identity if it is properly supplemented with consented mobile money or digital commerce data.
This hybrid model fits with her recorded success in providing the unbanked in Nigeria with services via platforms that use alternative credit scoring.
Industry voices echo the need for context-driven design. Lagos-based fintech advisor Tunde Adeyemi stresses that solutions must prioritize low-bandwidth functionality and offline access. “A market trader in rural Nigeria shouldn’t fear a failed transaction due to patchy networks,” he explains.
Meanwhile, the Benue financial inclusion researcher Dr. Aisha Sankoh emphasizes consumer education: “Before pledging crypto assets, users should be aware of the liquidation risks.”
These perspectives reinforce Chidinma’s methodology, which is neither too technological nor too behavioral, dynamizing the loan-to-value ratio to reduce volatility anxiety.
The true measure of success extends beyond immediate liquidity. For Africa’s unbanked, the transformative potential lies in converting transactional trust into lasting financial citizenship.
A repaid crypto-backed loan does more than fund inventory; it creates a verifiable record of creditworthiness, opening doors to larger loans, insurance, and supply-chain partnerships.
This vision aligns with Chidinma’s track record of turning constraints into opportunities, from redesigning remittance flows for clarity to embedding social accountability in savings apps.
The real test of success is not just immediate or short term liquidity. To the unbanked in Africa, the potential of transformation is turning transactional trust into permanent financial citizenship.
A repaid crypto-backed loan can do more than fund inventory: it establishes a verifiable history of creditworthiness, leading to access larger loans, insurance, and supply-chain relationships.
This vision is in line with Chidinma’s track record of turning constraints into opportunities, whether by reengineering remittance patterns to become transparent or by introducing social responsibility into savings applications.
Crypto is not a panacea. The regulatory uncertainty needs to be addressed and consumer protection should be key.
But when implemented with a strict sense of empathy, focusing on intuitive design, volatility buffers, and identity creation, crypto-backed lending can turn the story of inclusion on its head.
As Chidinma’s work demonstrates, the goal isn’t just to serve Africa’s unbanked, but to equip them with the irreplaceable asset they’ve been denied: a recognized place in the financial ecosystem.
