LAPO MFB is set to introduce a new banking app in 2025 after lending ₦237 billion in 2024. The app aims to attract a wider customer base beyond its traditional clientele of petty traders. With a history of 35 years in microfinance, LAPO now targets younger Nigerians to diversify its customer spectrum.
The upcoming LAPO app will enable users to access loans starting at ₦20,000, make bill payments, conduct daily transactions, monitor expenses, and open fixed deposits with competitive rates. The bank aims to shift its image from solely providing small loans to low-income earners.
Despite entering Nigeria’s competitive digital banking sector alongside established players, LAPO MFB believes its extensive physical presence across 34 states, historical credit issuance experience, and existing cashback programs are strong competitive advantages. The bank plans to combine digital innovation with traditional in-person services to enhance financial inclusion.
LAPO MFB intends to increase loan disbursements to over ₦400 billion in 2025, utilizing the app to provide quicker and more efficient loans ranging from ₦20,000 to ₦50 million, with monthly interest rates between 2.9% and 3.5%. To manage the risks associated with digital lending, the bank will start with small loans and gradually raise limits for trustworthy borrowers.
By leveraging partnerships with credit bureaus and utilizing proprietary data for credit assessments, LAPO MFB aims to cater to its core market while attracting a younger audience. The bank’s cautious approach and hybrid strategy could prove beneficial in overcoming challenges posed by user reluctance and fierce competition from digital fintech companies.