Credit Direct Finance Company Limited, the FinTech arm of FCMB Group Plc, has sustained its position as Nigeria’s leading consumer finance company, offering lending and fund management services to over 2 million customers in the last 17 years by leveraging innovative and customer-centric solutions.
In this interview, the Chief Executive Officer of the Company, Chukwuma Nwanze, sheds more light on the company’s purpose and achievements, including the disbursement of about N500 billion in loans to individuals and businesses.
Can you describe Credit Direct’s impact on the Nigerian economy since its inception?
Thank you for that question. Over the past 17 years, Credit Direct has pioneered Nigeria’s unsecured non-bank lending industry, effectively building this sector from the ground up. Our approach has inspired the growth of many other credit institutions in the country, showing the far-reaching influence of our model. Seventeen years ago, when no one else dared to, Credit Direct stepped in to serve an underserved market – civil servants across federal, state, and local government levels.
Traditional financial institutions often overlooked these individuals, but we saw a valuable opportunity to provide them with access to credit. We have extended credit to about two million civil servants nationwide. While this market might not be the most lucrative for larger institutions, we took the initiative and have remained dedicated to it, reflecting our commitment to financial inclusion. Our mission has always been to make financial services accessible to those excluded or underserved, and we’ve consistently worked towards this goal.
Another significant impact we’ve had is in job creation. Since our inception, Credit Direct has directly created over 3,500 jobs for Nigerians and currently employs 848 people. Additionally, we have made substantial economic contributions by paying around 17 billion Naira in taxes, including withholding tax, company income tax, and pay-as-you-earn tax. Providing access to credit and promoting financial inclusion is central to our mission, and these efforts are just a few examples of how we’ve contributed to the growth of the Nigerian economy. A robust credit system is essential for any developed economy, and we are proud to lead and continue to innovate in this space.
What are the key milestones that the company has achieved in recent years?
In recent years, one achievement I’m particularly excited about is being named the fifth best place to work in Nigeria last year, following our Great Place to Work certification. This recognition is a testament to how our organisational culture supports achieving our corporate objectives with a vibrant and highly productive workforce. That was a significant milestone for us.
Last year, we also entered the capital markets for the first time with our Series I and II commercial papers, which were oversubscribed by 137%. Over the past five years, we have won three industry-specific awards at the BusinessDay Banking Awards, among many other accolades. Every day at Credit Direct is impactful. Reflecting on when we started, securing our first business deal, obtaining legal status, and eventually providing credit to government employers, ministries, departments, and agencies across at least 28 states in Nigeria since inception are achievements I am incredibly proud of.
Reaching the milestone of extending credit to over two million individuals in Nigeria is also significant for us. It is worth noting that we have remained consistently profitable over the last 15 years, even through economic recessions. Between 2022 and 2023, our profitability grew by 67%, and our audited results at the end of June showed a growth of 144%.
Additionally, we were the first to pioneer same-day lending in Nigeria. When Credit Direct was launched, offering same-day credit was almost unheard of. Today, we have advanced from 24-hour approvals to completing the process in just minutes. We continue to lead the evolution in this space, and the results speak for themselves.
Could you give us insights into any current projects or initiatives Credit Direct is focusing on how they align with the company’s strategic business goals?
Absolutely. I want to focus on our digital transformation journey, which began about two years ago. This transformation has been a two-phase process. The first phase involved creating digital channels and automating our business processes, from customer interactions to backend operations. While I wouldn’t use the word “paperless” today, Credit Direct is fully automated, with all our backend processes digitalised. We have entered the second phase, focusing on leveraging artificial intelligence (AI) and advancing business automation further with tools like Robotic Process Automation (RPA). We aim to become a highly AI-driven organisation in the next two years. This means using AI for credit decision-making, enhancing customer interactions, and streamlining the loan origination process. Our goal is to significantly improve customer experience, making it even better than it is today by continuing to innovate and fully digitise our operations.
Credit Direct is already one of Nigeria’s most profitable credit-focused fintech companies, and our digital transformation has played a vital role in this. Since embarking on this journey, we’ve tripled our revenue and seen a remarkable 1,000 bps reduction in our cost-to-income ratio despite challenges like inflation and currency devaluation. This demonstrates not only our growth but also the increased efficiency technology brings. Our employees are more productive than ever as we combine human effort with advanced technology.
When I joined Credit Direct, we had a large underwriting team processing loans. Today, we have automated credit decisions, allowing us to scale the business much faster. About 20% of our customers use our digital channels; we expect this number to grow to 50% by next year. By 2026, we aim for our entire process to be fully digital. We are committed to providing a variety of channels for our customers, whether they prefer WhatsApp, USSD, mobile apps, or direct interaction with our team. Our goal with this digital transformation is to leverage AI and automation to scale efficiently, improve customer experience, and continue leading in the fintech space.
Looking forward, we see AI helping us in several key areas, including credit decisions, customer experience, and product development. We can offer more personalised products and enhance operational efficiency by harnessing data analytics and AI. For example, RPA will handle repetitive tasks, allowing our team to focus on more strategic work. We’re also working on providing better self-service options, ensuring customers can access credit anytime, day or night. A few years ago, it was unheard of for a customer to get credit on weekends. Our digital channels allow credit 24/7, and approvals can happen in minutes. These are just some of the initiatives we’re working on to improve operational efficiency, enhance customer satisfaction, and maintain profitability, all while fulfilling our broader mission.
Could you disclose the total amount of loans Credit Direct has disbursed since its inception and highlight the strategic drivers?
In the past 10 years, we have given out about two million loans and disbursed somewhere between 400 billion and 500 billion Naira. What innovative financial solutions has Credit Direct introduced to meet customer needs? Any revolutionary initiative? Certainly. One of our most significant innovations has been introducing unsecured lending with same-day disbursements. We are incredibly proud to be the first in Nigeria to offer this service. As the largest non-bank lender in the country, we’ve made it possible for customers to access loans not just within 24 hours but at any time of day, every day of the week. Our digital channels enable customers to obtain credit in as little as two minutes, with a maximum wait time of three to four minutes, depending on the network and the customer’s understanding of the process.
The mandate for us has been to play a role in democratising credit, making it readily available to everyone. The Central Bank of Nigeria has a vision for 40% of the active adult population to have access to credit, but currently, that number stands at just 3-4%. Credit Direct is committed to playing a crucial role in helping the central bank and the federal government achieve this goal, and we will continue to innovate and expand our services to meet the needs of our customers.
Are there any specific synergies between Credit Direct and other FCMB Group subsidiaries that enhance the overall value proposition for customers?
Absolutely. One of the most significant advantages of Credit Direct is being part of the FCMB Group, which I often think of as an unfair advantage. This unfair advantage isn’t necessarily unfair but undoubtedly unique. As part of this Group, we have access to various resources and expertise. For instance, our relationship with FCMB Bank gives us a strong banking foundation. When we need to engage with the capital markets, we can rely on FCMB Capital Markets, the Group’s capital market subsidiary. Similarly, FCMB Asset Management Limited supports us in securing the funding necessary to power our loan book, allowing us to provide credit to millions of customers each year. Our holding company also offers guidance, governance, and technical expertise, helping us navigate challenging economic conditions.
The FCMB Group’s national reach is another significant advantage. If we want to expand our business into a new region, like Zamfara, we benefit from the existing branch network, which has been instrumental in our nationwide expansion.
There are also considerable economies of scale that come with being part of a larger banking group. This allows us to leverage shared resources to enhance operational efficiency, profitability, and overall returns. Moreover, the Group’s technological infrastructure and technical know-how provide us with a robust pool of resources in terms of infrastructure and talent. This support accelerates our speed to market and helps us achieve our corporate objectives.
In summary, the benefits of being part of a diversified financial services group like FCMB are immense and crucial to our success. The synergy across the Group enables us to deliver more excellent value to our customers and strengthens our overall position in the market.
How have you galvanised resources to remain a top player in your industry, especially considering the increasing economic challenges in Nigeria?
These are indeed challenging times, and the turbulence we are facing cannot be understated. However, I always believe that the most important resource in any organisation is its people. At Credit Direct, we have an incredible team, and it’s the quality of our people that I first turn to when achieving our core objectives. Our team is highly productive and dedicated, and we genuinely consider ourselves a high-performance organisation. But beyond just performance, we pride ourselves on being a great workplace. We have one of the happiest workplaces, where people are excited to come to work every day, and that stems from the positive culture we’ve built over the years. Another key factor is our advantage from being part of the FCMB Group.
The ecosystem provided by the Group is phenomenal. It is like having an extended support system that guides us and offers the governance and technical expertise we need to navigate btough times. This connection has been essential for us, providing both a national reach and operational efficiencies that have helped us grow and expand our business across Nigeria. And then there’s technology. In today’s world, any organisation that doesn’t harness the power of technology will struggle. We believe a sustainable competitive advantage comes from how well you execute your technology strategy, whether through digital transformation, machine learning, AI, or developing innovative products and channels. We’ve used technology effectively to drive our business forward, which we are proud of.
When you combine all of this—our passionate people, the strength of being part of the FCMB Group and our strategic use of technology—you get a potent mix that allows us to stay resilient and thrive. Our core values, which we call the “Six Es,” are at the heart of everything we do: being entrepreneurial, striving for excellence, executing with precision, showing empathy, constantly evolving, and bringing high energy to everything we do. These values help us build a super-productive team that leverages all the advantages of being part of such a diverse and supportive group while fully utilising technology to keep us ahead.
Looking ahead, how do you envision Credit Direct’s continued growth contributing to FCMB Group’s long-term strategic objectives?
I believe FCMB Group as a whole is on a solid growth trajectory, and the numbers speak for themselves. Credit Direct is also following this path of growth. For instance, between 2022 and 2023, we increased our profitability by 67% and aim to grow by more than 100% between 2023 and 2024. This growth means we will continue significantly contributing to FCMB Group’s overall profitability. Currently, we account for about 10% of the Group’s profitability. As the CEO of Credit Direct, I am proud of our role in achieving the Group’s broader purpose. We must fulfil our commitments to FCMB Group’s objectives. We track our contributions closely to align with the Group’s goals. My vision is for Credit Direct to continue expanding and increasing its impact. By the end of 2026 or 2027, we will contribute much more than the 10% we currently provide, playing an even more significant part in driving FCMB Group’s long-term success.
How do you perceive the current landscape of the Nigerian lending industry? What trends do you foresee shaping the industry in the next three to five years?
That’s a fundamental and interesting question. I like to consider multiple factors when thinking about the future of the Nigerian lending industry. First and foremost is digital transformation. Technology is advancing at an unprecedented pace, especially in the financial services sector. Digital advancements will significantly shape the industry in the next five years, and we are still on that journey. As technology evolves, customer expectations will shift, particularly with a more tech-savvy generation. Financial institutions, including Credit Direct, will need to innovate rapidly to stay ahead of these changing needs. We are also going to see a stronger emphasis on financial inclusion.
With the rise of technology, artificial intelligence, and advanced data analytics, companies like Credit Direct will play a crucial role in reaching those currently excluded from financial services. We will be developing tailored products that meet specific needs and educating those who are underserved about the benefits of financial inclusion. The payment landscape will become even more dynamic. It’s already vastly different from a decade ago, and in the next five years, we can expect even more rapid changes. We will also see the increased use of data and analytics, leading to more customised credit products tailored to individual needs rather than a one-size-fits-all approach. As more data becomes available and AI becomes more integrated, the ability to offer personalised financial solutions will be a significant trend to watch.
Regulatory changes will also play a significant role. As the industry evolves, regulators will need to adapt to keep pace with these rapid developments. If regulatory bodies are proactive, we could see the benefits of innovation much sooner. However, if they are reactive, progress might be slower. Regardless, the role of regulators will be critical in shaping the future landscape. Collaboration will also become a key trend. Competition will evolve where organisations focus on their core strengths and collaborate with others to maximise efficiency and profitability. We will likely see competition and collaboration intertwine more closely as companies work together to serve customers better. Lastly, there will be a growing focus on sustainable and responsible lending practices. The days of predatory lending or irresponsible credit practices are numbered. In the coming years, we will see a shift towards more ethical lending, ensuring that customers are not burdened beyond their means and that lending practices are fair and sustainable.
What are Credit Direct’s strategic plans for future growth and expansion? Are there any new products or services in the pipeline you can preview for us?
One of the critical areas we are focusing on is expanding beyond Nigeria. We’re looking at international opportunities and considering markets that show similar patterns to those that have made us successful here. Exploring these opportunities in the coming years makes sense as we continue to build our technological capabilities and see them perform at scale. Another area we’re exploring is expanding into new verticals within our ecosystem. This means leveraging our existing competencies and capabilities to serve our customers in new ways. While we remain a credit-led organisation, we’re looking to go beyond just providing credit to individuals. We’re considering opportunities in business lending, e-commerce, SMEs, and tapping into payment solutions. Essentially, we’re examining all aspects of the financial services ecosystem that can help us serve our customers better. You can expect to see some of these initiatives taking shape in the coming months as we work to build a more robust Credit Direct.
As a key part of the FCMB Group, we are committed to supporting the Group’s strategic objectives. Wherever the Group needs us, Credit Direct is ready and able to play its part effectively and excellently. Whether expanding our reach or diversifying our product offerings, we are prepared to contribute to the Group’s overall success. These are some high-level plans for the future. While no one can predict precisely what tomorrow holds, these are the directions we are excited about right now. In the coming months, these plans will come to life as we grow and evolve.
What is the implication of Credit Direct’s partnership with CREDICORP for the industry?
Credit Direct’s partnership with CREDICORP positions the consumer credit industry in Nigeria for significant expansion by leveraging CREDICORP’s ability, wholesale funding and credit infrastructure. This collaboration enables Credit Direct to access larger pools of capital, ensuring the ability to extend credit to underserved markets, including low-income individuals and small businesses. With improved credit infrastructure, the efficiency of loan processing, risk assessment, and repayment tracking is enhanced, making it easier to scale operations and reach more consumers.
In the long term, this initiative can drive financial inclusion by integrating millions of Nigerians into the formal financial system, allowing them access to affordable credit. This will stimulate entrepreneurship, support small business growth, and reduce poverty levels. As more individuals and businesses gain access to credit, the economy could experience increased productivity, job creation, and a boost in GDP. Furthermore, a more inclusive credit system advances economic stability, positioning Nigeria for sustainable development and long-term growth.
What long-term economic impacts do you anticipate from the initiative?
Our customers often use credit for essential needs like education, healthcare, business ventures, and personal projects. All these elements have a lasting impact on the economy. For instance, good health boosts value creation at the workplace, and education is critical for any nation’s future. The more knowledgeable people are, the more development the nation can anticipate. Small businesses, supported by credit, create jobs that contribute to national GDP growth. This initiative will boost the economy and individual financial well-being as people invest in new ventures and address their daily needs.
We are confident that the partnership between Credit Direct and CREDICORP will in the long term increase financial inclusion, incorporating more Nigerians into the formal financial system and as a result, stimulate overall economic productivity, boost household consumption, and foster GDP growth.
CREDICORP’s goal of achieving 50% credit access for working Nigerians by 2030 is ambitious. How is Credit Direct positioned to leverage innovation, technology, and partnerships as a vital enabler of this goal?
Achieving this goal requires a robust credit infrastructure, as technology is crucial for reaching more people efficiently. At Credit Direct, we’ve integrated digital channels to provide 24/7 services, and our best-in-class core banking solutions offer customers easy access to lending, payments, and investment products. We’ve designed user-friendly products on these platforms, and our focus on technology has improved customer experience, thereby enabling customers’ peace of mind.
What challenges do you foresee in achieving this goal?
While we’ve made progress in adopting digital solutions, more needs to be done and we must continue educating people about the benefits of digital channels.
Today, we provide credit across all states in Nigeria, even without a physical presence in all these states. However, to maximise these digital channels, financial literacy needs to improve, and there also must be some improvements in our telecommunications and IT infrastructure on the national level. However, none of these challenges are insurmountable and I’m confident that we’ll see continued progress in digital adoption and financial inclusion.
With financial inclusion being a global development priority, how do you envision the consumer credit scheme contributing to Nigeria’s financial ecosystem? How will this impact economic empowerment, social equity, and sustainable development?
The Credit Direct and CREDICORP consumer credit scheme will advance Nigeria’s financial ecosystem through economic empowerment, social equity, and sustainable development. With regard to economic empowerment, there will be an expansion of credit access for more Nigerians, especially those underserved, to afford essential goods and services that will boost their productivity and livelihoods. There will also be more focus on entrepreneurship, with credit supporting small businesses and entrepreneurs, formalising many and improving access to larger markets. This will also impact job creation because as businesses grow through credit, they generate jobs, contribute to economic growth and reduce unemployment.
When it comes to social equity, consumer credit will bridge the wealth gap by democratising access to financial resources allowing people from lower income backgrounds to participate in the economy. Gender inclusion will also be emphasised as targeted credit schemes will empower female entrepreneurs, reduce gender disparities, and foster economic inclusion. Additionally, credit will enable more families access to education, thereby contributing to human capital development and reducing poverty.
Regarding sustainable development, consumer credit will support environmentally friendly products such as solar panels, energy-efficient appliances, and electric vehicles. This will promote Nigeria’s transition to a green economy and alignment with global sustainability goals. Consumers will also be introduced to digital and financial literacy, thereby strengthening the foundations of future growth and innovation in the financial services industry through a more financially literate population.
In conclusion, the Credit Direct and CREDICORP partnership can be a powerful tool for economic empowerment, increased participation in the formal economy and reduced inequality. With Nigeria’s large, youthful population, the ripple effects of a robust consumer credit scheme could unlock significant potential, positioning Nigeria as a key player in the global economy.
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