For decades, Nigeria's credit system posed significant challenges for small businesses and low-income earners, who often struggled to qualify for loans. Traditional banks demanded collateral, guarantors, and endless paperwork, effectively shutting out a large portion of the population working in the informal economy. FirstBank’s digital lending model flipped the script. By eliminating collateral requirements and reducing approval times from weeks to under five minutes, the bank transformed access to credit. Loans now flow through multiple channels—including *894# (the Bank’s USSD service), FirstMobile, LitApp, and the FirstMonie agent network—reaching market traders, civil servants, rural farmers, and everyday individuals.
When FirstBank disbursed its first instant digital loan in August 2019, it seemed like a bold experiment in tech-driven finance. Today, just six years later, the 131-year-old financial institution has announced cumulative disbursements of over ₦1 trillion in digital loans—a milestone that redefines the scale of retail digital lending in Nigeria’s financial services industry. This achievement reflects a profound shift in the way Nigerians—salary earners, small and medium-scale entrepreneurs, and the financially excluded—access loans. Credit, once a privilege for the wealthy or formally employed, is now a tap away for millions. FirstBank is helping people grow businesses, seize opportunities, and stay afloat in challenging times.
The numbers tell a compelling story: more than 1.5 million unique borrowers have accessed loans through FirstBank’s digital platforms. For a banking system historically constrained by bureaucracy and rigid risk models, the advent of collateral-free, instant digital loans offers relief. FirstBank has tapped into unmet demand that traditional lending channels failed to capture. Its digital lending ecosystem, built with Artificial Intelligence (AI) and Machine Learning (ML), assesses high-risk segments that conventional credit scoring often overlooks.
In Nigeria, where over 40 per cent of the adult population remains underbanked or unbanked, FirstBank is reshaping what inclusion looks like. The issue is not Nigerians’ ambition or repayment ability, but traditional banks’ failure to evaluate their creditworthiness. Legacy models simply could not capture the realities of those outside the formal economy.
FirstBank is rewriting that narrative. Through products like FirstAdvance for salary earners, FirstCredit for individuals without formal employment, and Agent Credit for micro-businesses within the FirstMonie Agent network, the bank shows how financial inclusion can be scaled with smart, data-driven tools. These products are tailored to meet people where they are, using technology to bridge gaps that paperwork once made impassable.
This strategy aligns with Nigeria’s broader financial inclusion goals. The 2023 EFInA Access to Financial Services (A2F) survey shows that 64 per cent of Nigerians are now formally included in the financial system. Much of this progress is driven by mobile money and digital services, which are making banking accessible even in the most remote corners.
The implications for micro, small, and medium enterprises (MSMEs) are profound. According to SMEDAN, MSMEs contribute nearly 50 per cent to Nigeria’s GDP and employ over 80 per cent of the labour force, yet access to formal credit remains their greatest constraint. Through Agent Credit, FirstBank empowers small traders, artisans, and shopkeepers—many in areas far from bank branches—with quick, affordable capital. This redistribution of financial access fosters grassroots participation and economic resilience.
The significance extends beyond Nigeria. Across Africa, where an estimated 350 million adults lack access to formal financial services, FirstBank’s model offers a blueprint. By leveraging mobile adoption, behavioural data, and agent networks, African banks can build credit ecosystems suited to local realities, using digital lending as a bridge from exclusion to empowerment. It is proof that banks can be more than gatekeepers; they can be catalysts for inclusive growth.
Industry analysts view FirstBank’s milestone as part of Nigeria’s broader digital economy evolution. Over the past decade, mobile and agent banking expanded accessibility, but credit remained a bottleneck. While savings and payments grew, lending stayed cautious—held back by default risks, weak identification systems, and limited credit histories. FirstBank is changing that equation. By deploying data aggregation, alternative credit scoring, and digital channels, the bank is unlocking new ways to assess risk and extend credit confidently.
Yet, scaling digital credit raises questions about sustainability and consumer protection. In Kenya, the rapid rise of digital loans sparked concerns over over-indebtedness, data privacy, and predatory lending by unregulated players. Nigeria’s regulators will need to balance innovation with safeguards. FirstBank appears ahead of the curve, leveraging AI not just for approvals but also for proactive risk management—minimising defaults and promoting responsible repayment behaviour.
Another dimension is competition. Fintech lenders are known for fast, collateral-free loans, but often with exploitative interest rates, aggressive recovery tactics, and regulatory challenges. FirstBank, with its balance sheet strength, nationwide presence, and trusted reputation, blends fintech agility with traditional banking resilience. Having processed over ₦1 trillion in digital loans, the bank shows it can serve Nigerians with speed while providing the institutional trust customers still value.
This milestone also marks a cultural shift in how Nigerians relate to banks. Traditionally seen as conservative and focused on corporates, banks were often detached from individuals struggling with rent, school fees, or working capital. By embedding loan access into its digital channels and FirstMonie network, FirstBank has repositioned itself as a partner in daily life. Whether customers use smartphones or basic feature phones, they now enjoy equal access to credit, free from technological or administrative barriers.
Economically, the ripple effects are far-reaching. Beyond smoothing household consumption, instant loans stimulate activity in local markets. Traders restock quickly, farmers buy inputs on time, and artisans meet unexpected orders. Aggregated, these micro-impacts fuel productivity and growth, strengthening the informal economy that underpins local commerce.
As FirstBank celebrates this landmark, it also embraces the responsibility that comes with scale. Digital lending on this magnitude is not just a product line; it is a public utility shaping how millions experience financial security. Sustaining momentum will demand continuous innovation and a strong focus on customer empowerment—values deeply ingrained in the bank’s DNA.
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