Nombank Leverages N250bn Daily Transaction Volume to Bridge Nigeria’s SME Credit Gap
Seun Osunkeye, Managing Director of Nombank, Nigeria’s leading digital bank and banking subsidiary of Nomba, has articulated a compelling vision for the future of fintech in the nation, asserting that the industry’s next significant advancement will stem from leveraging transaction data to unlock credit for millions of underserved businesses. This strategic pivot moves beyond the initial focus on payment processing speed to a more profound application of financial technology.
Nombank currently processes approximately N250 billion in merchant transactions daily, a substantial increase from N7 billion in May 2025. Osunkeye highlights that this scale provides Nombank with a real-time, granular understanding of business operations—revenue generation, expenditure patterns, and growth trajectories—a critical advantage often lacking in traditional lending institutions. By utilising this rich transaction data, Nombank is able to assess creditworthiness and extend financing to businesses historically overlooked by conventional banks, thereby reducing reliance on traditional collateral, audited accounts, or rigid documentation.
Osunkeye’s deep-seated interest in Small and Medium Enterprise (SME) financing predates his fintech career. His academic research into the influence of microfinance institutions on small business survival and growth laid the foundation for his persistent inquiry into why viable businesses struggle to access capital. This foundational curiosity guided his career trajectory, including roles at HotelOga and NightsBridge, and co-founding Carnegie Venture Partners, where he advised startups on capital raising. These diverse experiences provided him with a multi-faceted understanding of financing as an operator, investor, and financial professional. His tenure at Nomba, initially as a senior finance associate and later as financial controller, exposed him directly to the persistent challenge of excluding healthy businesses from formal finance due to the inflexibility of traditional lending products. Leading Nombank, therefore, represents the culmination of a career dedicated to enhancing capital accessibility for deserving businesses.
His background, rooted in accounting and corporate finance rather than conventional banking, has profoundly shaped Nombank’s institutional architecture. Osunkeye emphasises that accountants are trained to prioritise controls, sustainability, and long-term value, a discipline that has remained central to his approach. His direct involvement in treasury management, fundraising, planning, and financial reporting at Nomba provided him with an intimate understanding of merchant profitability drivers, operational risks, and the metrics for sustainable growth. This perspective differs from traditional banking, which, while strong in credit assessment, often operates at a slower pace than the dynamic fintech environment. Nombank’s objective, therefore, is not merely deposit mobilisation but the establishment of an institution characterised by financial discipline, robust governance, and the resilience to support businesses over the long term.
The strategic acquisition of a microfinance bank by Nomba was a pivotal moment, initially aimed at securing essential infrastructure. As Nomba expanded, the reliance on third-party banking partners presented limitations to innovation and operational efficiency. Acquiring a banking licence enabled Nomba to gain control over critical banking infrastructure, facilitate deposit mobilisation, and develop financial products within a regulated framework. This vision has since evolved, with Nombank now operating as a distinct institution with its own customer proposition, specifically addressing the financial needs of businesses underserved by conventional banking.
The symbiotic relationship between Nomba and Nombank is integral to their operational model. Nomba functions as the technology platform facilitating merchant payments and business management, while Nombank serves as the regulated financial institution underpinning these services. All savings and financing activities conducted through the Nomba platform are processed via Nombank. Operating as a licensed microfinance bank necessitates adherence to stringent regulatory requirements concerning capital adequacy, governance, and deposit protection, thereby instilling greater confidence in customers regarding the security of their funds within a supervised banking framework.
The N250 billion daily transaction volume processed by Nombank translates directly into a significant competitive advantage in lending. Osunkeye identifies data as Nombank’s primary differentiator. The daily flow of transaction data provides unparalleled insights into business performance, enabling more accurate assessments than traditional financial statements alone. This allows Nombank to evaluate businesses based on their actual operational behaviour, facilitating faster lending decisions and the development of products precisely aligned with working capital requirements, rather than relying on collateral or historical audited accounts. This deep well of transaction data and established customer trust is a formidable barrier to replication.
Nombank is actively redesigning the traditionally documentation-intensive SME lending experience. By leveraging its existing understanding of merchant transaction patterns, Nombank significantly reduces the need for extensive paperwork, audited financial statements, and physical collateral, which often exclude the very businesses most in need of financing. This data-driven approach enables faster facility approvals and repayment structures tailored to individual business operating cycles, moving away from rigid lending frameworks.
The company is strategically positioning itself within the rapidly expanding embedded finance sector. Osunkeye observes a growing demand from businesses to integrate financial services directly into their platforms. An example cited is a partner in the oil and gas sector that has embedded Nombank’s collection infrastructure, enabling seamless payments for fuel stations. Nombank’s understanding of transaction behaviour within such ecosystems allows for the provision of credit precisely when liquidity is most needed. This model, Osunkeye believes, is replicable across diverse sectors including logistics, agriculture, retail, and remittances, signalling a future where financial services are embedded within existing business operations rather than confined to standalone applications.
The trend of Nigerian fintechs acquiring Microfinance Bank (MFB) licences, including prominent players like Paystack, Moniepoint, and OPay, is driven by the fundamental limitation of not being able to hold customer funds. An MFB licence removes this ceiling. However, Osunkeye distinguishes Nombank’s approach, noting that its journey has been one of organic development. Nombank has been the underlying banking infrastructure for Nomba for three to four years, building its capabilities and customer base while others are now acquiring licences. This prior market development and customer engagement, rather than a post-licence market search, is Nombank’s key differentiator. The bank was developed in response to articulated customer needs, resulting in a deeper data repository, more mature credit assessment methodologies, and established trust with its clientele.
Osunkeye identifies SME credit as the most significant opportunity for innovation within Nigeria’s fintech industry. While payment infrastructure has advanced considerably, the critical challenge remains the design of lending products that genuinely serve the needs of small businesses. Sustainable SME lending, he argues, requires high-quality data, disciplined risk management, and patience—elements that will define the next phase of fintech innovation.
Leading the banking arm of a company on a “unicorn trajectory” is described as building institutional infrastructure at an accelerated pace. Decisions that might take a quarter in a traditional bank are made within days. However, this speed is underpinned by stringent regulatory discipline, as a licensed bank is not a venue for startup experimentation but a custodian of public capital. This responsibility shapes Nombank’s risk posture and strategic direction. The ambition of the wider group and the discipline of banking are not in conflict but are mutually reinforcing, with Osunkeye’s role focused on ensuring Nombank possesses the structural integrity to support Nomba’s ambitious growth.
