While instant credit remains a vital service, the bank, which began as a digital lending platform in 2017, is now positioning itself as a full-service financial ecosystem.

This strategic evolution directly addresses Nigeria’s critical financial exclusion challenge as described in the Enhancing Financial Innovation & Access (EFInA) Financial Services Access Survey 2023 reports that nearly one in four Nigerian adults remains excluded from formal financial services.

Following the acquisition of a Microfinance Banking License in 2021, FairMoney rapidly expanded its offerings.

According to Henry Obiekea, managing director, the bank was established with a singular mission: to help underbanked and unbanked users in Africa, Nigeria inclusive, access financial services.

FairMoney’s expansion timeline highlights this aggressive growth:

• 2021: Secured Microfinance Banking License from the Central Bank of Nigeria and launched the bank in Nigeria.
• 2022: In July 2022, Global Credit Rating Co. (GCR) assigned FairMoney Microfinance Bank a national scale long-term rating of BBB and a short-term rating of A3, both with a Stable Outlook. The full rating report and methodology are publicly available on GCR’s website.
• 2023: Launched banking and lending services for SMEs and Merchants.

The company’s offerings now span retail banking, business banking, merchant services,, moving far beyond its initial Unsecured Personal Loans product. Central to FairMoney’s strategy is a robust savings proposition designed to help Nigerians protect and grow their money against inflationary pressures.

This focus on deposit mobilization has yielded significant trust and operational strength.

According to the Q4 2023 Industry Credit Bureau Performance Report published by CRC Credit Bureau, FairMoney Microfinance Bank was ranked 3rd among reporting Nigerian financial institutions based on total credit originations during the period, using the Bureau’s standard credit volume measurement methodology.

“FairMoney continues to innovate with tailored products such as FlexiCredit, designed for Nigerian professionals earning at least ₦250,000 per month. The product provides a flexible credit line of up to ₦5,000,000, subject to eligibility and credit assessment, through a single application. Interest is charged at 0.25% per day on amounts drawn, with no fees on unused portions. Terms and conditions apply. By providing a streamlined credit process, FlexiCredit helps customers access funds efficiently while maintaining full transparency.” said Henry Obiekea, managing director, FairMoney.

By leveraging advanced digital scoring, FairMoney is actively helping customers build digital credit history and enhancing credit visibility. This holistic approach supports the Central Bank of Nigeria’s financial inclusion goals and the national vision of a $1 Trillion GDP by 2030.

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Henry Obiekea, the managing director of FairMoney MFB, speaking during an interactive session with journalists in Lagos, highlighted the company’s evolution from a digital lender into a full-service, credit-led neobank with strong regulatory compliance and an expanding product suite.

“We want to be close to different stakeholders so that we can consistently tell our stories and let everybody know what we are about,” he said. “That really is the idea behind this engagement.”

FairMoney: From a Lending App to a Regulated Neobank

The MD recalled that FairMoney began operations in Nigeria in 2017, founded by Laurin Hainy and two other co-founders with a mission “to build a financial services home for the underserved and the underbanked.”

Initially known for instant, unsecured consumer credit, FairMoney expanded significantly after securing its microfinance banking licence (MFB) in 2021.

“That was a game-changer for us,” he said. “It meant we could offer additional services, current accounts, payments, transfers, debit cards, and move much closer to the vision of a full financial services home.”

In 2023, the bank added SME lending and merchant payment services, marking a major strategic shift.

“We’ve moved from a pure consumer focus to serving SMEs as well, helping them accept payments and providing working capital loans,” Obiekea explained.

Building a Bank on Local Deposits

While FairMoney is VC-backed, the MD disclosed that the bank took deliberate steps early on to reduce FX exposure by raising local currency funding.

“Very early in our journey, we recognised the importance of raising local currency,” he said. “We issued private notes, commercial papers, and built a savings product that encouraged deposits from individuals and corporates.”

The result, he noted, is that FairMoney is now “primarily funded by deposits,” giving it stability and resilience.

‘We Are a Credit-Led Neobank’

The MD described FairMoney’s identity succinctly:

“We like to say we are a credit-led neobank. Started with credit, and now we look like a bank, with deposits, debt, and equity. That is how we’re structured now.”

Going forward, he said the bank will focus on deepening its footprint in the microfinance banking space and expanding its product breadth.

On Competition and the Future of Banking

Speaking on evolution in the banking sector, the MD said the Nigerian market is due for reorganisation.

“Every five to ten years, you have some form of reshuffling,” Henry Obiekea observed. “Our internal thesis is that within Nigeria’s top five banks, you will see fintech-based players. We are positioning ourselves to be one of them.”

He noted that customers of traditional banks increasingly migrate to digital-first institutions due to better user experience, product innovation, and faster service delivery.

Ethical Lending and Loan Portfolio Quality

Addressing questions on FairMoney’s loan book and repayment challenges in the tough economic environment, the MD stressed the company’s commitment to ethical collections.

“We don’t do unethical practices. We have very strict internal guidelines—even when we use external agencies,” he said.

He added that while macroeconomic pressures have led to higher defaults across the industry, FairMoney’s eight years of lending data gives it a strong edge.

“Data is currency,” he said. “We’ve amassed a trove of proprietary data that helps us distinguish high-risk from low-risk customers. Our models keep improving.”

FairMoney also partners with credit bureaus and uses customer-consented bank statements to enrich credit assessment.

“We can only be sustainable if we maintain a high-quality loan book,” he added.

On Regulation: Improve What Exists, Not Create Something New

When asked about the proposed single fintech regulator, the MD argued in favour of improving the current multi-regulator system rather than adding a new layer.

“We already have CBN, NDPC, FCCPC and others. If a new regulator is created, it won’t replace them. It will only add to the list,” he noted.

“My preference is to improve collaboration and engagement with the regulators we already have.”

Toward Authentic Financial Inclusion

The MD also shared his views on FairMoney’s philosophy of “authentic financial inclusion.”

“It’s not just financial inclusion, it’s economic inclusion,” he said. “If people don’t have money or don’t trust the system, they won’t save. Inclusion must come with fairness, transparency and ease of access.”

He hinted that FairMoney is working on new offerings aligned with this philosophy.

The Road Ahead

FairMoney says its ambition is clear: deepen its market, expand offerings, strengthen governance, and compete shoulder-to-shoulder with Nigeria’s biggest banks.

“It’s an exciting challenge, but one we are ready for,” the MD concluded.

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