AI and Automation Drive Inclusive Growth in Nigeria’s Embedded Finance Sector

Growing Intersections of AI, Automation, and Financial Services Driving Business Transformation

Mr. Chukwuma Nwanze, MD/CEO of Credit Direct Finance Company Limited, shares insights on how AI and automation are reshaping financial services in Nigeria and beyond. With over a decade of experience leading digital transformation, Nwanze highlights the practical changes and future directions for embedded finance.

The Future of Embedded Finance and Digital Learning

FinTech is becoming an inherent part of every financial product. In the near future, the term "FinTech" may fade as all financial instruments become digitally integrated through seamless API connections. AI will play a central role, enabling fast, intelligent credit decisions that foster greater financial inclusion.

Credit Direct is at the forefront of this shift, driving embedded finance that integrates finance into daily life across Africa. This trend is supported by increasing smartphone usage and internet access, making financial services more accessible, especially to underserved communities.

Transformative Changes at Credit Direct

Since assuming leadership in 2023, Nwanze has accelerated Credit Direct’s digital transformation. The company has expanded beyond traditional lending to include digital payments, retail investments, and embedded finance solutions. Their mobile app, launched recently, serves over 200,000 customers, with a goal of one million users soon.

The organisation now operates as a digital-first, paperless business. Customers can access credit within minutes via USSD, WhatsApp, mobile, or web platforms. Innovative products like "Buy Now, Pay Later" allow customers to complete purchases quickly, reflecting how technology has streamlined financial services.

Equally important is the focus on people. By fostering a culture that values productivity and innovation, Credit Direct has doubled workforce output, driving measurable improvements in business performance and customer satisfaction.

The Impact of CLARA: AI with a Human Touch

CLARA (Credit, Lifestyle, and Revenue Assistant) is an AI-powered assistant launched in 2023 that supports customers with loan decisions, investment guidance, and service queries. Developed through an internal innovation program, CLARA has improved response efficiency twentyfold compared to human agents.

Nwanze emphasizes that AI complements rather than replaces human workers. In a country with high youth unemployment, AI helps reduce inefficiencies, performing tasks that would otherwise require large teams. The goal is to combine AI-driven efficiency with job creation, maintaining a balance between technology and humanity.

Leadership Approach to Building a Future-Ready FinTech

Having risen through various roles, Nwanze stresses that strategy alone isn’t enough; engaged people bring strategy to life. Credit Direct’s culture encourages employees to be authentic while working toward shared goals. This approach supports seamless operations and has contributed to nearly 90% annual business growth.

Leadership focuses on courage, adaptability, and emotional intelligence to unify a diverse workforce. A strong, healthy culture is seen as the foundation for sustainable success in a competitive financial environment.

Reflections on Performance

In just over two years, Nwanze and his team have transformed Credit Direct into a fundamentally different company. The progress made in digital capabilities and business growth brings him considerable satisfaction and motivates continued innovation.

Future Plans for Credit Direct

Looking ahead, Credit Direct aims to solidify its position as Africa’s leading embedded finance company. Expansion beyond Nigeria is planned, alongside deeper investments in payments, credit, and other financial services. The company will continue to prioritize AI-driven credit decisioning and customer-centric operations.

The Intersection of AI, Automation, and Financial Services

The combination of AI and automation presents significant opportunities. The more automated a business becomes, the easier it is to apply AI effectively. AI is becoming commoditized, and within five years it will be fully normalized in financial services.

Technologies are evolving from basic automation to advanced machine learning and robotic process automation, enabling systems that surpass human capabilities. However, applying these technologies responsibly is essential, especially considering Nigeria’s unique social and economic context, such as youth unemployment and education gaps.

AI must be adapted to local realities rather than imported wholesale from Western models. The aim is to embed financial services—lending, payments, savings, insurance—directly into everyday life, removing the need for traditional brick-and-mortar processes.

Credit Direct’s credit-first, capital-efficient model has thrived for 18 years by combining technology with deep market knowledge, working through payroll systems, cooperatives, and e-commerce platforms to deliver real value.

Challenges Over 18 Years

Credit Direct has weathered a global financial crisis, multiple recessions, and various macroeconomic challenges. The key to resilience has been a business model focused on trust and value creation. The company has served nearly two million customers, improving financial access for underserved populations.

Nwanze highlights how their work has real-world impact, with many customers' families benefiting from educational opportunities funded through Credit Direct’s services. This sense of purpose drives the organisation beyond profit, ensuring positive social outcomes.

Working with Regulators

Credit Direct is regulated by the Central Bank of Nigeria, which Nwanze regards as a partner. Regulatory frameworks provide essential discipline, governance, and security, helping shape sustainable businesses that deliver shareholder value and societal benefits.

Rather than seeing oversight as a hindrance, Credit Direct views it as integral to long-term success and risk management.

The Role of the Credit Direct Mobile App in Financial Inclusion

The Credit Direct Mobile app extends financial services to roughly 200,000 active users, focusing on the underserved and underbanked. It offers borrowing, saving, investing, and payment services accessible beyond urban centers to semi-urban and rural areas.

Complementing the app, USSD services allow feature phone users to access credit and perform transactions by simply dialing *5120#. This multi-channel approach ensures broad financial inclusion without reliance on traditional banking infrastructure.

Credit Direct’s approach demonstrates how digital platforms can democratize finance and support economic participation across diverse communities.