23rd June, 2024
By Oluwagbenga Oyebanji
The inflation rate in the economy has caused an astronomical increase in prices of goods and services in the urban centres with Lagos having the highest surge. The price of housing in Lagos has soared post Covid- 19 making it have a major effect on house rents in Lagos.
Findings and data obtained from estate agents and Propertypro.ng revealed this abysmal increase in rent prices. The demography affected the most is the youthful population and they have the highest cohort in the national workforce. The average urban working-class Lagos dweller has a major challenge in paying house rent promptly.
This major social problem of consistent increase in house rent brought an opportunity for a solution in Rentspace a startup Fintech firm. Rentspace is a startup firm that saw this gap as an intense social problem and decided to solve this problem by bringing a Fintech solution of saving and providing basic credit and financial support that is not relative to traditional financial houses.
The forward-thinking solution of Rentspace addresses the financial challenges of working-class families in Lagos State seeking and paying for their accommodations.
The innovation presented by Rentspace helps its users to save efficiently towards their rent goals.
Saving is very challenging when inflation is high but RentSpace innovation has introduced a saving culture specifically for rent purposes. Users can withdraw from their accounts once a month to encourage saving habits. The RentSpace platform is automated for the users.
According to IFC 2022 disclosure about Nigeria’s Fintech which was N13 trillion ($9billion). The geometric growth of Nigeria’s financial digital space has created an economic momentum that is promoting financial inclusion, economic growth and economic empowerment for the youths. This economic improvement must be encouraged by the government to quickly strengthen the middle-income group which is the backbone of the nation’s labor force.
The recent introduction of Consumer Credit Corporation (CREDICORP) should be a platform for forward integration with the Fintech sector. According to the CEO of CREDICORP, he opined that Nigeria needs N180 trillion for consumer credit annually. There should be a strategic partnership with Fintech firms and CREIDCORP because the onboarding strategies of Fintech companies are more innovative than the traditional banks.
The government through the CBN must provide a soft loan scheme in conjunction with the Fintech sector because of the customer onboarding success rate which is always time-consuming with the traditional banks.
The $1 trillion GDP projection of PBAT by 2030 is achievable with Fintech sector as a prominent participant for the vision to be actualized. The disruption and financial inclusion the Fintech sector has achieved is a strong positive for economic improvement and empowerment of the youthful population. Technology is the DNA of the 21st century economy and Nigeria must be active with a viable Fintech sector.
*Oluwagbenga Oyebanji is a public analyst. He could be reached at Siemmag@gmail.com