Business Decision: Vella Finance Drops Crypto Services
Nigerian fintech startup, Vella Finance, has made the decision to stop offering crypto services and instead focus on providing banking services to small and medium-sized businesses. Co-founder Tolu Adedayo explained that this business decision was made based on practical reasons.
According to a report by Techcabal, Vella Finance informed its users and subscribers on October 23 that it would no longer offer crypto-related services starting from October 30. Adedayo stated:
We’re going fully into SME Banking. Banking requires playing in regulatory confines. We already serve businesses from the onset backed by user and transactional data. It just makes sense to offer an end-to-end banking system to better serve them.
Adedayo also expressed his opinion that providing both cryptocurrency and banking services simultaneously is not feasible.
Rising Interest in Nigerian Crypto
Vella Finance’s decision comes at a time when interest in digital assets like bitcoin and tether is growing in Nigeria. According to a Chainalysis report, Nigeria is one of the six countries in the world’s top 50 where crypto transaction volume has increased year-over-year. Additionally, the depreciation of Nigeria’s local currency is said to be driving interest in crypto assets.
Despite this growing interest, Adedayo mentioned that Vella Finance plans to introduce new features that will solidify its entrance into the business banking space.
Hot Take: Vella Finance Shifts Focus to SME Banking
The Nigerian fintech startup Vella Finance has decided to discontinue its crypto services and instead concentrate on providing banking solutions for small and medium-sized enterprises (SMEs). In a recent announcement, co-founder Tolu Adedayo stated that offering both crypto and banking services concurrently is not practical, leading to the decision to drop the former.
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