The Human Equation: Linda Olumide on Why People Strategy Makes or Breaks Fintechs
A stark reality faces Nigeria’s vibrant startup ecosystem: over 40% of ventures funded between 2021 and 2023 had ceased operations by mid-2024. While factors like funding scarcity, regulatory hurdles, and unviable business models undoubtedly contribute, internationally certified HR leader Linda Olumide consistently points to a critical, often underestimated, common denominator: people issues. Her insights highlight that the human element frequently determines whether promising fintechs truly scale or ultimately stumble.
Why People Strategy is Fintech’s Untapped Growth Engine
Olumide meticulously details these persistent human capital challenges within the fintech landscape, citing weak leadership structures, insufficient talent pools, and alarmingly high attrition rates as significant deterrents. Despite the Information and Communications Technology (ICT) sector, significantly driven by fintechs, contributing nearly 20% of Nigeria’s Gross Domestic Product, many promising ventures lack the fundamental people foundations necessary to sustain long-term growth. This pattern, Olumide observes, is far from an isolated Nigerian phenomenon.
The global fintech sector experienced widespread layoffs throughout 2024, with major players like Klarna and Revolut, alongside numerous smaller startups, cutting staff. Industry analysis revealed a concerning trend: these companies, often backed by hundreds of millions in funding, were not failing due to product flaws or market rejection. Instead, their ambitious growth targets were undermined by an absence of sustainable people practices. They expanded rapidly without building the robust HR frameworks, leadership development, and talent retention strategies required to support such scale. For ambitious Nigerian founders, this global lesson serves as a particularly poignant reminder of the indispensable role of a well-articulated and executed people strategy.
Ultimately, Linda Olumide’s perspective underscores a vital truth: for fintechs aiming to scale successfully, especially within dynamic markets like Nigeria, a robust people strategy is not merely an HR function but a strategic imperative. Ignoring the foundational aspects of leadership, talent acquisition, and employee retention leaves even the most innovative and well-funded startups vulnerable to collapse. Cultivating a resilient organizational culture and investing in human capital are, therefore, paramount for sustainable growth and navigating the complexities of the competitive fintech landscape.
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