Thank you for joining us today, Rauf. To begin, could you walk us through your journey into the fintech space and how your interest in data and technology led you to found 99Lab and your other ventures?

My technology journey began with a computer science degree from the University of Surrey, enriched by practical experience at Eli Lilly, a major US pharmaceutical company. This early exposure, shifting my focus from pure tech to its broader application in business and data, led me to a Master's in Innovation Management at the London School of Economics and participation in the Google Top Black Talent mentorship program.

Returning to Nigeria, I joined Konga.com, navigating the challenges of an e-commerce marketplace with limited infrastructure. My work involved leading the mobile business pioneering mobile payments, addressing the predominantly cash-based economy and building trust in online transactions, vital in competing with entities like Jumia. These experiences in building mobile commerce solutions and fostering fintech innovations significantly shaped my understanding of technology's transformative power in emerging markets.

After my tenure at Konga, I established NQLB, a company that now supports over 100,000 SMEs with tax preparation and automation. We've collaborated with some of Africa's largest banks, implementing solutions across 25 countries. Our expertise extends to significant public sector projects as well; notably, we assisted the largest state tax agency in Africa, contributing to a more than 50% revenue increase within 12 months through our innovative solutions.

Building on this foundation, our latest venture is 99Lab, a consultancy that amalgamates years of public and private sector experience. Our goal is to empower businesses aiming to engage with the African consumer market, both on the continent and within the international African diaspora. Leveraging our comprehensive exposure, expertise, and insights, 99Lab is positioned to offer unique guidance and strategies for tapping into this vibrant and diverse market.

That's super impressive. So I guess that gets me into the next question, which may be a difficult one to answer for you. But could you tell us what a typical day for you look like? How do you balance strategic planning with day-to-day operations?

Every day in my role brings something new. While planning is essential, the reality often diverges, demanding flexibility. My focus has shifted over the years; earlier, it was heavily on product development and strategy, but now it revolves around assembling and trusting a talented team to deliver.

A significant part of my time is dedicated to stakeholder engagement, both internal and external, to understand needs, challenges, and opportunities. I delve deeply into both quantitative and qualitative analyses, using tools like Google Analytics and Hotjar, and engaging in customer conversations for insights. This dual approach informs our decision-making process.

Experimentation is key in Fintech and fast-paced tech environments. I encourage clients to embrace open-mindedness, engage in A/B testing, and explore various options, using outcomes to shape future steps. This ethos of innovation and data-driven strategy is what attracted us to Sikoia, seeing the value they offer to Fintechs and the exciting possibilities for collaboration.

You mentioned the challenges in recruiting the right teams to execute. So, in terms of go to market and product strategies, go to market strategies are always under increasing focus. It's down to also experimenting, seeing what works, what doesn't work. So, what are the trends that you've observed with the various ventures that you've been involved in? Do you see a particular trend or does that depend on the product, on the market or on the sector?

There are some interesting trends that we’re excited about, which is what led us to your company as well.

Number one is global migration. As the G7 economies continues to have an increasingly aging population, immigration continues to be an important topic and policy area. There's been an upward trend in terms of migration of people from, for example, Africa to the West, especially, the UK, US, and Canada. That has an impact in terms of financial services and fintech as well. I define that from a socioeconomic and socio-political perspective.

Now let's look at it from a purely technical perspective, and in financial services specifically. The trend driven by Gen Z and younger generations is that finance is no longer something you go to, it's something that comes to you. We see this manifested with embedded finance. People, especially these younger generations, are no longer taking up traditional loans or credit as others have in the past. But buy-now-pay-later (BNPL) has been widely adopted, as the data shows. Searches for BNPL have increased over 800% over the last five years. I think an interesting evolution here will be embedding micro-credit in a similar way.

Another trend we’re interested in – and tying back to the topic of global migration – is the rise of alternative forms of credit scoring. Credit scores are no longer only impacted by your credit card. Things like rent reporting and other active financial transactions are influencing credit scores as well. For us, merging global mobility with all the innovation happening in financial services, specifically for the youth and for the recent migrant population, is an exciting area for innovation. And the opportunities are still largely untapped! For example, in the UK, net migration last year was over 600,000 – that’s 600,000 new migrants who will need access to financial services, who will need to build new credit profiles, and more. For anyone who is truly looking to unlock exponential value, these are the trends and signals to look at.

This is where the data comes in and the power that data has when it's well understood. Of course, that's what you're doing with NQLB, and the project that we're currently discussing in terms of how you can help building credit score for the Nigerian diaspora in the UK and US and Canada.

Indeed, our extensive experience in processing taxes for over 6 million individuals and 100,000 businesses has provided us with deep insights into financial behaviors and transactions. As a portion of this demographic is relocating globally, their growing need for credit access, building, and enhancement becomes evident. This is where collaborations with companies like Sikoia become invaluable. We aim to harness similar insights in new locations and ethically connect these individuals with appropriate credit providers, ensuring compliance and alignment with their needs.

This is fascinating – and applies not just to a specific diaspora but is a need emerging from increasing globalization. This concept of a “personal data passport”, which kind of includes your credit history, is something that I think consumers are increasingly expecting, if not in those words, but the output of that sort of capability is what they are increasingly expecting.

Exactly. And they're expecting it to be faster, to be much more personalized and to be fair for them, as well.

That leads me to my next questions. Fintech, payments, data mobility: there’s no escaping regulatory requirements! Can you share and example of a regulatory change that impacted your work, how you adapted, and what you learned from it?

There have been instances that have shifted my mindset from the traditional 'move fast and break things' approach to one where speed doesn't necessitate disregard for compliance. As an advocate for compliance, I recognize that while regulators may not always keep pace with innovators, they play a crucial role in protecting consumer interests, especially those who are less heard.

For example, we once applied for a money services license and met the initial requirements, but soon after, the capitalization requirement increased tenfold. Though this was a setback, it proved to be a valuable opportunity. It forced us to re-evaluate our business model, unit economics, and assumptions, leading us to a more sustainable approach and innovative revenue models like embedded finance and strategic partnerships.

This experience taught us the importance of aligning our interests with regulatory requirements, viewing compliance not as a hurdle but as a critical aspect of responsible and sustainable business growth.

And how do you see that working for the wider Nigerian fintech scene, those sorts of regulatory changes, for example, and how will that affect sort of innovation and the appetite from fintechs to enter the market and take the risk?

For a startup or business ecosystem to mature, it must balance innovation with risk management. Regulators typically focus on risk, ensuring compliance with standards, particularly in areas like Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT), to prevent system abuse.

Innovators naturally aim to move quickly, as seen historically with the advent of ATMs and current discussions around AI impacting jobs. Regulatory responses are inevitable, and it's up to the maturity and experience of founders to strike a balance.

A recent example is the Central Bank of Nigeria's new regulations to protect the Naira and manage foreign exchange liquidity. While some view this negatively, I see it as an opportunity, especially as it encourages official channels for dollar inflows, hinting at success for business models centered around remittances.

This scenario underscores the importance of understanding and engaging with regulatory signals. For sectors like Fintech, establishing strong lobby or stakeholder groups for dialogue with regulators is crucial. This ensures that while businesses meet their objectives, the government also fulfills its role in public interest protection.

I view this regulatory engagement positively. Nigeria's emergence as Africa's largest fintech ecosystem and a robust economy can be attributed not only to the ingenuity of startups but also significantly to the government's efforts in creating an enabling environment. The government's role, highlighted by innovations like instant payments – a service not yet universal even in several G7 economies – has been instrumental in this growth. This synergy of entrepreneurial spirit and supportive governance, coupled with continuous engagement and improvement, remains crucial for the ongoing development and sustainability of the fintech sector in Nigeria.

Taking a step back to your personal experience in a bit more detail. When you were vp of product at Konga, you were responsible for growing the mobile division. Could you share some of your key learnings there?

Emphasizing again, data is crucial! Coupled with this is the importance of engaging consumers intimately through their mobile devices. A dual focus on being data-driven and people-oriented is key. Deep respect for people is essential, and this respect can be demonstrated by creating products that genuinely solve their problems. I advocate for a "niche-down and scale up" approach, where you don't attempt to address every demographic initially but rather deeply understand and solve for a specific group first.

Indeed, understanding the local context is key. In Nigeria, as well as across Africa, Over 80% of internet users are mobile-first, primarily due to the high cost of laptops. Most consumers access the internet via smartphones. This was a key insight I capitalized on at Konga. When I joined, the platform was predominantly web-based. As head of the mobile division, I developed the mobile arm of the business. This strategy paid off significantly, increasing revenue by over 30% and contributing around 40% to the company's total revenue share in just 18 months. This success illustrates the importance of tailoring solutions to the specific needs of your community.

Moreover, effective distribution in Africa, and Nigeria in particular, must go beyond just utilizing social platforms like Facebook or Instagram. It should be socially embedded, leveraging influencers and community leaders who play a crucial role in shaping consumer decisions. Building strong partnerships is, therefore, vital for a successful distribution model.

Lastly, the foundation of Fintech, and financial services in general, is Trust. The industry is in a constant battle to earn and maintain this trust currency. It's essential to keep this at the forefront when developing products and seeking business opportunities in this sector.

That trust element is interesting, especially - as you say - with a mobile channel. There’s a widely held perception that a lot of African companies, because of the mobile-first history, are just much better at this than a lot of European companies.

Absolutely. This expertise is increasingly relevant given the ongoing global migration trends. There's a growing wave of African innovators who are adept at creating solutions tailored to both African and Diaspora communities. Their deep understanding of mobile-first environments positions them uniquely to address the specific needs of these demographics. Take Flutterwave, for instance. Their strategic move to acquire remittance licenses across multiple US states is a direct response to the crucial role of remittances in the financial lives of the African diaspora. This approach is likely to extend to other financial services like account opening, banking, and lending, targeting the largely underserved population of 170 million Africans in the diaspora. Despite regular financial activities, many in the diaspora have limited access to credit, and their transactions often don’t impact their credit scores. This disconnect creates an opportunity to develop solutions that incorporate these regular transactions into credit assessments, significantly enhancing financial wellness. This trend underlines the growing influence and potential of African innovators in addressing unique financial challenges, both at home and globally.

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I recently encountered a McKinsey study revealing that a mere 3% increase in the wealth of the black adults in the US could unlock $1 trillion in value.

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This insight highlights a substantial market opportunity, especially considering the diaspora with limited credit access. For a perceptive businessperson, recognizing and addressing these unmet needs not only makes sound economic sense but also promises a significant impact. Such scenarios offer fertile ground for both substantial economic benefits and meaningful societal contributions.

What an incredible statistic – and what an incredible opportunity!

We're coming to the end. I think you pretty much touched on those at the very beginning, but more looking for sort of words of wisdom here. The first one being, as a successful founder, what is your philosophy on building a resilient team culture?

That's a tough one! Something I always hold is fundamental respect for people, regardless of wherever they're from. There's this idea of always seek to understand before you try to be understood. I always want to understand people's context and perspectives, because at the end of the day, as a venture builder, we're all scanning for pain-points for impact.

The motto of the London School of Economics, “To know the causes of things,” has been a guiding principle for me. It underscores the importance of looking beyond the superficial, delving deep into the underlying principles, and being driven by data to break things down to first principles. And really, for me, those are the key guiding principles. Everything else sort of flows from there. I love data, I love learning from people and diverse experiences, and I love listening now more than I speak, because I find that when you do a lot of that more, you get more value out of it.

That’s really insightful. Time for one more: looking back at your career, what advice would you give to a wannabe founder looking to build a successful fintech?

I think I'm still on the journey myself, and I'm by no means at the destination I'm hoping to get to! But the key is to focus on problems that have potential for impact. I focus a lot on impact and opportunities for impact; focusing on pain points, on areas where there is large, underserved demand, as opposed to just trying to do something for a quick buck.

Entrepreneurship is indeed a long-term journey, not a sprint. It demands resilience and the readiness to endure over time. However, an aspect often overlooked is the importance of mental health support for founders. Having a community or a group where entrepreneurs can openly share their thoughts and challenges is vital. Many founders struggle without such a support system. It's crucial to have a space to decompress and address the stress and concerns that come with running a business. The entrepreneurial path doesn't necessarily become easier, but founders can become more adept at navigating it with the right support network to help manage and mitigate the pressures they face.

That was brilliant. Thank you, Rauf. Thank you for your time.

Thank you.

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