Opay on track to do $1 billion in revenue this year with 60% from loans. NPL is just over 4% making it quite a profitable endeavor. With stories like this, I wonder where the limit is for ongoing profitable growth.
Something mind blowing happened today, and it opened my brain to a whole new system I must have been missing out on, and a loophole that OPay and PalmPay's loan systems might have left open.
Read this story very well o.😂 Also, most of these conversations happened in Yoruba, so I'm doing my best to bring you into the experience.
Remember the new distribution strategy we unlocked at Blocstreets? Incentivising owners and leaders of existing institutions and communities to distribute products to the people they already have access to. Well, we were returning from a second partnership meeting with an institution when we decided to take a stroll through the streets to burst into the expressway to lead to the market. Sincerely, I'd planned that by the middle of our second month of deployment, we'd leave markets and institutions and start exploring residential streets. But my focus had been on high class residents at least. You get?
Now, as we walked, I noticed people looking at us. In my mind, I knew it was because we were wearing our shirts. That's normal. Branded shirts attract attention. We kept going. Then we got to a food spot where two women were sitting, and they called out to us. “Aunty, what are you people doing o?” We moved closer and started explaining what we were doing. Guys, do you believe at least 2 people in nearly every house on that street opened an account today?😭 I wish I were kidding. Here's how it started.
We were onboarding the two women. It took a while to convince one of them to open an account. She insisted she wanted to use her NIN, not her BVN. Why? She said her BVN had once been used to wipe her account. The NIN server was fluctuating, so we kept trying to persuade her. Eventually, she agreed to use her BVN, opened the account and funded it immediately. (Never look down on anybody in this life, guys) While we were still assisting the two women, a man came to buy beans from them. He noticed what we were doing and asked us about it. We explained that it was an online bank. This man left, went home and came back with his NIN card so he could open an account. Gradually, more people started joining us.
Then came the lady in black in frame 3. She was coming out of her gate, on her way to work. She approached us and asked what we were doing. We explained, and she immediately wanted to open an account. But she asked a question I didn't pay enough attention to at first: “If I use my BVN, will it connect to my other online bank?” I told her no, that one bank's account wasn't automatically connected to another just because she used the same BVN. Looking back, that was where I should have started thinking more deeply about what was happening. But my brain hadn't connected the dots yet. Immediately after we finished her onboarding, she dropped the nylon and said she was coming back. She wanted to bring someone. I said okay. GUYS, SHE WENT TO BRING HER HUSBAND. 😭
Apparently, electricity was an issue in that area, and his phone battery was low. He was practically rushing us to attend to him first before his phone went off. But there were only three of us, and the onboarding process was moving a little slowly. At some point, he asked, “I can open this thing myself nah?” He sounded very educated so I said yes. Before long, he was calling me to verify his KYC. “Aunty, oya, e verify KYC mi o!” I said, “Ah ahn, sharp sharp?” He went back into their compound and almost immediately two more women came out to join us.
Now, this was where everything made sense. A maruwa arrived with two other men. They had come to buy food. One of the men left to buy alcohol and later returned with three different brands of white gin. One of them looked at us and asked: “Which one is happening here o?” We explained that it was a new online bank. His next question was: “Ehn? Will I be able to collect money now now inside it?” I said yes.
This man burst out and said something along the lines of: “Ah! OPay wants to finish me. I don't even have money to buy clothes anymore because of debt!” Everybody burst out laughing, and started commenting on debt, Opay and Palmpay. GUYS. The way my brain screamed JESUS! So this was what was happening.
Some Nigerians aren't just looking for a new bank? They are looking for financial breathing room from debt at Opay and their other banks? Let me leave you with that thought. I'm tired and hungry I wan find food chop fess.