The Managing Director and Chief Executive Officer of Lovonus Microfinance Bank, Mr. Adeola Ayibiowu, has said that microfinance banks (MFBs) remain the only banking option for millions of Nigerians, especially those who are left out by commercial banks. He stated this on Monday while speaking about the bank’s investment in digital transformation and mobile banking.
Ayibiowu said despite Nigeria’s tough economic environment and challenges within the financial sector, public interest in microfinance banking has not reduced. According to him, MFBs play a vital role in giving access to financial services for many Nigerians who are not able to use regular commercial banks.
“There is still strong interest from customers. For many, MFBs remain their only banking option,” Ayibiowu stated.
As of 2024, Nigeria has hundreds of licensed microfinance banks across the country. These banks provide a wide range of services such as savings, microloans, business development services, and financial literacy. The sector mainly supports low-income earners, small business owners, and people in rural or underserved areas.
Ayibiowu said that microfinance banks are more than just lenders. They are drivers of economic development, job creation, and poverty reduction in Nigeria. He added that technology and innovation are helping to push the industry forward, especially in digital banking and mobile platforms.
“The key is innovation, inclusion, and integrity. That’s the Lovonus way. Even in turbulent times, microfinance is a lifeline. At Lovonus, we’re not just navigating change; we’re shaping the future of financial empowerment in Nigeria,” he explained.
He noted that investors are still showing interest in microfinance institutions, especially those that are well-managed, tech-driven, and rooted in community service. According to him, such banks continue to attract attention even in uncertain times.
Ayibiowu highlighted the investments Lovonus MFB has been making in digital platforms. He said the bank’s digital transformation is more than automation—it has led to better loan monitoring, more efficient collections, and improved customer service.
“Beyond automating our processes, we’ve seen real impact—improved loan monitoring, more efficient collections, and enhanced customer convenience,” he said.
He added that Lovonus does not adopt a one-size-fits-all model when dealing with customers. Instead, the bank engages with each customer personally to understand their financial situation and restructure loans when necessary.
“We assess each customer’s situation to restructure loans, extend tenures, or offer moratoriums. This not only builds loyalty but also protects our loan book,” he explained.
This personalised service approach, he said, has helped the bank build stronger relationships with customers and supported Lovonus MFB’s financial strength.
Ayibiowu also discussed the bank’s growing loan portfolio. He said the bank now offers more structured credit solutions, such as asset-based lending, and targeted financing for Small and Medium Enterprises (SMEs). These loan products are aimed at helping small businesses remain sustainable despite Nigeria’s changing economic conditions.
“We also offer financial literacy training because knowledge is power. Educated clients are less likely to default and more likely to grow,” he added.
In the area of risk management, Ayibiowu said Lovonus MFB has upgraded its credit assessment systems to include non-traditional indicators. The bank now uses alternative data, such as mobile transaction history and behavioural patterns, to assess loan applicants, especially those in the informal sector who may not have traditional financial records.
“We now use alternative data, including mobile transaction histories and behavioural patterns, to make more accurate lending decisions,” he said.
Ayibiowu stressed that these innovations are helping Lovonus MFB to serve a wider population and reduce loan defaults while deepening financial inclusion across Nigeria.
He concluded by saying that while inflation, shifting government policies, and structural issues continue to affect the sector, the future of microfinance in Nigeria remains promising. According to him, continuous innovation, community engagement, and financial education are key to the long-term survival of microfinance banks.
