How AI and Automation Are Transforming Nigeria’s Financial Services Industry

Growing Intersections of AI, Automation, and Financial Services Drive Business Transformation — Nwanze

Mr. Chukwuma Nwanze leads Credit Direct Finance Company Limited as Managing Director and CEO, steering one of Nigeria’s foremost embedded finance firms. Since joining in 2012 as Head of Strategy and Business Development, he has been central to the company’s digital transformation, starting with the development of its first Loan Management System.

Over more than a decade, Nwanze has held key leadership roles including Chief Finance Officer and Executive Director of Finance and Strategy. Appointed MD/CEO in 2023, he has guided Credit Direct through a major shift towards digital-first financial solutions, leveraging artificial intelligence and automation to increase operational efficiency and improve customer experience.

Under his direction, Credit Direct launched innovative offerings such as the Credit Direct Mobile App, the AI-powered assistant CLARA, and a Buy Now, Pay Later product. These initiatives have positioned the company firmly within the digital finance space across Nigeria and Africa.

The Future of Embedded Finance and Digital Learning

Nwanze sees embedded finance becoming a seamless part of everyday life, with financial instruments inherently digital and interconnected through API-led integrations. AI will play a vital role in enabling swift, intelligent decision-making, particularly in lending, allowing credit approvals to happen instantly regardless of complexity.

He anticipates significant growth in embedded finance, driven by increasing smartphone and internet penetration in Nigeria. This will expand financial inclusion, making access to credit and digital financial services more equitable and widespread. As mobile adoption grows, innovation will follow suit, shaping a vibrant FinTech environment.

Transformative Changes at Credit Direct

Since becoming CEO, Nwanze has continued and expanded upon previous digital initiatives. His focus has been on evolving Credit Direct from a traditional lender to a digital-first financial technology company. The company’s offerings now include digital payments, retail investments, and embedded finance solutions accessible through its mobile app.

The Credit Direct app, launched recently, serves over 200,000 users with a target to reach one million soon. The organisation operates almost entirely paperless, integrating digital processes across lending, payments, and investment services.

Credit access has been streamlined dramatically. Customers can receive loans in as little as two minutes through various channels, including USSD (*5120#), WhatsApp, mobile, or web platforms. The Buy Now, Pay Later product enables customers to purchase devices and leave the store within minutes.

Beyond technology, Nwanze emphasizes the importance of cultural transformation within the company. Productivity has more than doubled, reflecting a workforce energized by a culture of innovation and output. This cultural evolution directly supports improved financial performance and customer satisfaction.

The Impact of CLARA

CLARA (Credit, Lifestyle, and Revenue Assistant) is an AI-powered assistant developed through Credit Direct’s Innovate Fest programme in 2023. Created by a young Nigerian recently completing their National Youth Service Corps (NYSC), CLARA exemplifies the company’s commitment to bottom-up innovation.

CLARA supports customers with loan decisions, investment guidance, and answers questions related to their financial journeys. It handles inquiries about 20 times faster than traditional contact center agents, significantly boosting operational efficiency.

Nwanze stresses that AI at Credit Direct complements the workforce rather than replacing it. While AI can perform tasks that might otherwise require hundreds of people, the company maintains a focus on balancing automation with a human touch. He highlights the potential for AI to reduce inefficiencies and create new opportunities, particularly in a country with a large young population and high unemployment.

• Credit Direct’s digital transformation includes a suite of products designed to make financial services more accessible and convenient.
• Embedded finance will increasingly be the norm, integrated into daily life and powered by advanced AI and automation.
• Cultural and operational shifts within organisations are essential for successful digital transformation.

Executives and strategists seeking to understand how AI and automation can reshape financial services may find valuable insights in Credit Direct’s approach. For those interested in building AI and automation skills relevant to finance and operations, training resources are available at Complete AI Training.