When Sulaiman Adewale set out to build Xara, he believed in its potential but did not anticipate that it would earn him a job offer from xAI. For Adewale, the offer represents an unexpected validation of a product he originally created to solve a personal challenge linked to his short-sightedness.
Xara, an AI-powered banking assistant, was initially designed to act as an extension of his vision. Using a smartphone camera, the assistant can capture account details and execute transfers seamlessly. Since its launch ten months ago, however, the product has evolved far beyond accessibility.
Today, Xara functions as a personal financial analyst, allowing users to query their transaction history and automate payments. Users can ask questions such as who they have sent money to most frequently or set recurring instructions like daily transfers over a specified period. Adewale describes it as a first-of-its-kind product, aiming to transform conversation itself into the primary banking interface.
This approach stands in contrast to more traditional AI applications in Nigeria’s financial sector. According to the Central Bank of Nigeria (CBN), leading use cases for AI in banking include fraud detection, customer support, and credit scoring. Xara, by comparison, seeks to embed banking directly into conversational interactions.
The platform operates via WhatsApp, appearing to users as a contact capable of understanding financial requests and executing transactions. Adewale said the decision to build on WhatsApp was deliberate, given its widespread familiarity, particularly among older Nigerians.
Despite its simplicity on the surface, building Xara posed significant technical challenges. Adewale noted that large language models (LLMs) are inherently unstable and unpredictable, requiring extensive refinement to ensure reliability in financial transactions. Xara runs on a fine-tuned version of a publicly available model, though specific details were not disclosed.
Security has also been a central focus. The platform uses a four-digit PIN for transaction authorisation, avoids OTP-based systems, and enforces strict KYC protocols. According to Adewale, Xara has recorded no security breaches, even as its user base has grown to over 45,000.
Currently, Xara operates through partnerships with existing financial institutions. Wallet services are powered through collaborations with firms such as Rubies MFB, while services like airtime purchases are supported by Kuda.
This model positions Xara as a financial layer built on top of existing infrastructure, enabling faster market entry.
However, the company has broader ambitions. Adewale indicated that Xara may eventually pursue its own licences, potentially evolving into a fully independent AI-powered neobank.
From Technical College to Global Opportunities
Adewale’s journey into technology has been unconventional. Although he began coding in 2010, he did not follow a traditional university path due to financial constraints. Instead, he attended Technical College Osogbo and continued his education independently.
He has since worked on international projects, including the Voya app in Singapore, and served as Lead Software Engineer at Boost, a Zambian startup. While he acknowledges the xAI opportunity, Adewale stated that any move would depend on whether it aligns with Xara’s continued growth.
Rapid Growth and Market Position
Xara’s growth reflects a broader trend in the AI sector. Companies like OpenAI have demonstrated how quickly AI products can scale, with ChatGPT reaching one million users within five days of launch. Similar momentum is being observed globally and within Africa.
Within ten months, Xara has reached 45,000 users. In its first seven months, it processed ₦4 billion in transactions, and within three additional months, that figure doubled to ₦8 billion.
Other African AI startups are also experiencing rapid adoption. Products such as Decide, built by Abiodun Adetona, and Dala have recorded tens of thousands of users within months, highlighting growing demand for AI-driven solutions across the continent.
Business Model and Future Outlook
For now, Xara generates revenue through transaction fees and commissions on services like airtime and data purchases a common model among Nigerian fintechs. However, this approach depends heavily on high transaction volumes and thin margins.
The platform’s reliance on partner infrastructure also limits its control, as it does not directly hold customer funds. Instead, it acts as an intermediary layer connecting users to banking services provided by partners like Kuda and PalmPay.
Looking ahead, Xara is developing a business-focused version that could introduce subscription-based revenue streams. Planned features include payroll management, invoicing, and bulk payments, all accessible through the same conversational interface.
Adewale envisions Xara evolving beyond a fintech application into a broader digital ecosystem, similar to WeChat, where users can interact with multiple services through a single interface.
While it remains to be seen whether this vision will materialise, Xara’s early traction suggests that conversational banking could represent a significant shift in how users engage with financial services in Africa.
TNAM
Edited By Egwu Patience Nnennaya
