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Visa-backed African unicorn Moniepoint tackles remittances. But is it late tothe game?
Visa-backed Nigerian fintech, Moniepoint, launches MonieWorld to enter the competitive UK-Nigeria remittance space. CEO Tosin Eniolorunda aims to create an immigrant banking platform, not just a remittance service. The market is crowded with established players, raising questions about Moniepoint's late entry and differentiation strategy.
Key points
- Moniepoint received Visa's investment, signaling a shift towards remittances.
- Launch of MonieWorld, starting with UK-Nigeria corridor, targets diaspora financial services.
- CEO emphasizes longer-term vision of an immigrant banking platform beyond mere remittances.
- Existing competitors offer low fees and established user habits, making entry challenging.
- MonieWorld aims to leverage Moniepoint's existing infrastructure to provide added value.
- Long-term strategy includes broader financial tools like credit building.
Why it matters
- The remittance market is becoming increasingly competitive, especially for Nigerian immigrants.
- Remittance outflows from the UK reached £9.3 billion in 2023, highlighting market opportunity.
- Moniepoint plans to replicate successful U.S. models of immigrant financial services.
- Past successful entries into competitive fintech markets show potential for growth despite late entry.
Moniepoint's venture into the remittance space is ambitious but faces fierce competition. Its existing infrastructure and focus on immigrant banking may allow it to carve out a niche, but convincing users to switch from established services remains a significant hurdle.