Banking Platforms Reshape Competition In Nigeria’s Financial Sector

Nigeria’s banking sector is undergoing rapid disruption as software-as-a-service platforms allow smaller players to deploy enterprise-level banking tools within weeks, industry operators said on Tuesday.

The shift is being driven by Insolify, a financial technology firm whose Fincore platform offers ready-to-use banking services to banks, fintechs and cooperatives, according to the company.

In a statement, Paul Adeluyi of Insolify said Fincore enables institutions without large IT teams to launch consumer mobile apps, USSD banking, instant payments, and artificial intelligence-driven workflows at a significantly lower cost.

The firm said tens of financial institutions have adopted the platform, achieving in weeks what traditional banks spent years building.

Insolify said the model mirrors its earlier rollout of Safi, an artificial intelligence and fraud-prevention system, which it said gained rapid market adoption through instant deployment.

Industry analysts said the strategy is now giving smaller banks and fintechs a competitive edge over established commercial lenders.

However, critics warned that the trend could distort the competitive landscape. Some commercial banks, which invested heavily in in-house technology, now face rivals with similar or stronger capabilities at a fraction of the cost, they said.

Others raised concerns about market concentration, noting that reliance on a few SaaS providers could give them significant influence over critical banking infrastructure.

A senior banking executive, who requested anonymity, said regulators would need to closely monitor the space to strike a balance between innovation and market stability.

The Central Bank of Nigeria has not yet commented on the growing use of SaaS core banking platforms.

Observers noted that the development highlights a key challenge for Nigeria’s financial system: expanding innovation and inclusion while ensuring fair competition and systemic stability.