How Tech Generation Is Changing Economy
The small and medium enterprise (SMEs) sector has been growing. There have been activities on all its fronts, including the startups. Entrepreneurial success stories abound.
He saw a gap in credit giving to SMEs in rural areas.
Taking advantage of this, he established a digital platform to connect cooperatives to serve the segment. Today, he has reached a milestone of one million users of his cooperative banking solution.
He spoke during the first anniversary of Hub One tech space by First City Monument Bank (FCMB) in Lagos.
A startup founder incubated at the tech space, he established his company during his internship as an undergraduate of the Federal University of Agriculture, Abeokuta, Ogun State.
But the story of the co-founder CTO, ScholarX Maxwell Ogunfuyi, is different. He said the startup helps students to have access to scholarships.
By providing students with information for finding and securing the scholarship, the founders believe they are giving students value.
So far, the adoption of the ScholarX platform has been slower than expected. This is despite its low yearly subscription fee. The founders attribute the problem to the technology gap.
However, ScholarX has applied for this year’s Startup School by Y Combinator and got accepted. That is a validation that they are on the right path.
President/CEO, SUBA Capital, Silas Ozoya, a fitech microfinance institution that helps individuals and small business owners raise capital with ease. SUBA Capital, according to him, offers microfinance (thrift savings and micro-lending) and strategy consultancy services for small businesses.
He is among the startup founders incubated at Hub One tech space provided by FCMB.
Addressing the forum, Ozoya said SUBA Capital started with microfinance services with six contributors in 2017. It has grown to almost 200. The first capital payout in 2018 was just N180,000.
His words: “As at this January 2020, we have paid out over N5million to our contributors who contributed in the 2019 financial year to cater for personal and business capital demanding needs and the testimonials have been unending.”
He said SUBA Capital pivoted into agriculture and then fast-moving consumer goods (FMCG) in 2019.
“So far, they have created at least 150 jobs directly and indirectly through their agricultural farm project – Farm Better with SUBA Capital; our fast-moving consumer goods (FMCG) vending programme – SUBA Store, our investment programme, and recently our agent banking network – SUBA agent Network. With these we are contributing our little quota to reducing unemployment, foster growth, reduce hunger and alleviate poverty. We are extending this programme to food vendors and student entrepreneurs.”
The startup has expanded to three major cities – Lagos, Benin City, and Port Harcourt.
He said his vision is to create opportunities for Nigerians to grow their income through farming and thrift.
FCMB’s Executive Director, Business Development, Mr. Olu Akanmu said harnessing information communication technology innovations to tackle social challenges is vital to solving youth unemployment.
He said the bank recognizes and believes in the power of technology and youth-driven enterprises. He assured the public that FCMB will continue to invest in initiatives that support and develop tech start-ups in Nigeria.
He noted that societal problems create opportunities for youths and entrepreneurs to provide solutions.
He said the bank believes in strengthening livelihoods and bringing youths into the supply chain.
Akanno said the bank will support more entrepreneurs to have access to markets.
FCMB’s Divisional Head Transaction Banking, Rolayo Akhigbe, explained that the hub was about using technology to solve security and social problems in the economic nerve centre.
She said the innovation hub is dedicated to developing a competitive start-up ecosystem.
She said the hub is designed to provide a learning experience for entrepreneurs to strengthen their skill sets.
