Digital

Youth

19% of Nigeria | 20 million people

conscientious, future-oriented, open-minded

Click below to learn more:

Watch Tosin's

Short Documentary

TOSIN'S STORY

Meet Tosin

 

"I want to be stable first, because when you have stability you move on and grow."

Tosin is 28 years old and moved to Lagos at a young age. He discovered his passion for art and design, which proved to be lucrative. Though initially saving his commission earnings in piggy banks, he later bought land when he was 16 years old and then sold it to start a fashion and interior design business. He received an art school scholarship and completed a two-year degree, but was drawn to entrepreneurship. He wants to be big and hustles in his social network, but doesn’t trust many people when it comes to money. As a fastidious saver, he keeps two bank accounts for savings, but is largely against borrowing from formal providers. His mom and brothers help cover expenses in low times, otherwise he works his way back up. He dreams of scaling his business one day.

Though Tosin has big aspirations, his trepidation towards taking out a loan prevents him from growing his business. Why does he lack trust in borrowing from formal providers?

 
 

SEGMENT OVERVIEW

Digital Youth,

by the numbers

Like Tosin, Digital Youth are mostly young, urban, middle to higher income, highly educated, single men who are self-employed or formally employed. Approximately 20 million (19% of the Nigerian population)

fall in this segment.

Digital Youth

Nigeria Average

GENDER (MALE)

60%

49%

AGE (18-34)

69%

62%

SOCIOECONOMIC (SES 4-5)

61%

40%

HIGH INCOME VOLATILITY

74%

54%

Digital Youth are the wealthiest segment amongst Nigerians, as most own smartphones and have completed at least secondary education. However, given their high rates of self-employment, they experience the highest income volatility in Nigeria.

Financial Behavior & Attitudes

SAVINGS BEHAVIOR & ATTITUDES

Despite their wealth, Digital Youths’ financial health is mixed due to their very high income volatility. Their high conscientiousness and low spending impulsivity help contribute to their savings deliberateness. The vast majority have a plan to manage expenses and save frequently.

SAVINGS ACCOUNTS

Though active users of technology, Digital Youth do not save frequently through mobile savings accounts. They also exhibit low rates of group savings, due to a reluctance to expose their finances to friends, family and neighbors.

BORROWING BEHAVIOR & ATTITUDES

They borrow infrequently, mainly through family, and are uncomfortable holding debt for fear of default. 

BORROWING ACCOUNTS

Despite Digital Youths' strong penchant for technology, their use of mobile borrowing is only average, suggesting a possible untapped opportunity. And though they have broad social networks, Digital Youth are the least likely to rely on group borrowing for financial support. 

Digital Youth

Nigeria Average

Explore our complete set of findings:

 

DESIGN OPPORTUNITIES

How might we create products and services

for Digital Youth that...

Leverage Mobile Convenience

Include financial planning tools, debt consolidation and automatic loan payments products

Ensure Privacy and Control

Use messaging language that emphasizes customer privacy and conveys trust and reliability

Support Small

Business Development

Offer income smoothing strategies that account for high income volatility in Digital Youth

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 The Human Account is led, created and developed by Dalberg with Rockefeller Philanthropy Advisors, and funded by the Bill & Melinda Gates Foundation.

 

Local partners are Lagos Business School in Nigeria, Ashoka University in India, not-for-profit development finance company, Karandaaz in Pakistan, and research and advisory firm, Busara Center for Behavioral Economics in Kenya.