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Doing a lot of online transactions, money transfers, mobile payments will make you appreciate the beauty of fintech. Imagine having to go through a bank queue to do a simple transaction. That’s so stressful, isn't it?
The industry has improved drastically, making almost every other sector (banks, education system, businesses) sign in and incorporate it into their operations and services.
This makes things easier and serves as a framework for both the companies and their clients.
Fintech has found a way of reducing unnecessary bank charges payment by offering access to low-cost digital services. The rate at which Nigerians use the digital mode of payment has increased, thanks to the low-cost transactions.
Every citizen of Nigeria is a fintech user, whether you know it or not. Everyone makes use of the debit card from banks, make an online payment, make an online investment, sign in for insurance programs and make use of mobile banking apps and websites.
Likewise, almost everyone is associated with the popular cryptocurrency and blockchain system, which is related to the economic aspect of tech.
So, why is it important?
- It is easy to access
- It provides finance-related solutions
- It’s safe for customers to use
- It supports freedom and capability in the area of finance
- It’s useful in career growth
We’ll be checking out how the industry has helped to transform the Nigerian economy and its importance in the global markets and to individual consumers.
Read some of the reasons to work in the fintech industry.
Management of Financial Operations
When it comes to managing finance-related operations, no other institutions come close to fintech, not even banks. Other businesses and institutions seek support from the fintech industry to get their work done.
Fintech is used for automating finance-related services. It has helped companies and individual users to manage their financial operations well.
Fintech has given people the drive to be in control of their decision, leading to a high level of financial literacy.
Software, algorithms, programming language, data analysis, machine learning, and other advanced innovations is been used in the industry to create new digital products for customers.
These services are designed in such a way that customers will be able to access them on their mobile phones. What more could a customer ask for?
Fintech has combined the ideas from the traditional system with the latest innovations to build a successful ecosystem. With fintech, businesses have been able to come up with amazing data products and services that make things easier for users.
Welcoming fintech into Nigeria’s operation is the best innovation that has been made in Nigeria and Africa at large. Fintech is the framework of any financial institution, making it extremely important.
Fintech is responsible for most of the growth we see in Nigeria’s organizations and financial institutions. The transformation of banking institutions into what it is now is a result of the risks taken and solutions brought by fintech.
You don’t have to wait long hours in bank queues or go through stressful protocols to carry out a simple money transfer. You can do all that on your mobile phone now. You can also make any of your payments through mobile apps on your smartphones.
The invasion of tech has helped companies stay in the competitive Nigerian and African global markets, making them relevant too.
Here's all you need to know about fintech in Nigeria!
Provision of Financial Solutions for Businesses
Before fintech came to be, organizations have struggled with a lot of financial and management issues. Some businesses that could not withstand the struggles went into extinction.
Since the introduction of fintech into business, there are have been positive changes in several institutions and sectors. The tech industry has helped organizations to bring investment capital and funding into their sector.
There are other transformations that fintech has brought into businesses and they include smooth payment process, easy mobile, and money transfer, crowdfunding, investment, insurance, and more.
With this innovation, businesses have been able to take risks by creating new digital products and services. These services have changed the view of people about how they see business institutions.
Nigerians can now buy or pay for services that they like within the comfort of their homes without going through the stress of going to banks. This is an amazing innovation.
The organization either great or small can engage in global money transfer easily, both overseas and within Africa. This has given African and Nigerian business organizations the needed exposure to connect with persons outside Nigeria, and beyond Africa.
African and Nigerian businesses are not limited to only local transactions. People from different parts of the world can now patronize businesses in Nigeria. This development promotes digital payments with different currencies.
The industry has also created room for new startups to grow. With fintech, startups can now scale up in their industry to enhance their growth.
Fintech has helped startups in pooling resources online to get loans and funds that will help them. These loans go a long way in helping new startups get the required capital for proper management.
Read on how fintech began in Nigeria!
Cost-Effectiveness
The usage of tech in the economic sector is now very rampant due to its benefits. Fintech has improved payment service quality through the use of advanced technology.
Aside from fintech being fast, convenient, and flexible, making use of tech in Nigeria is cost-effective.
Customers can now do mobile transfers and make payments on their smartphones with little or no charges. Mobile phones in conjunction with fintech have changed customers’ attitudes towards finance-related operations.
The cheap financial operations enjoyed by clients were achieved by the use of fintech’s advanced innovations.
Furthermore, the fintech industry has been very transparent with no motive of scamming users. The industry makes life easy by providing solutions to customers, businesses, and even banking institutions that use it.
If you think fintech is making use of low payment charges as a means to take advantage of users, then you are wrong. There are legal rules and regulation that governs the fintech industry.
All fintech operations happen online and they are governed and regulated by regulatory and legal bodies such as the Central Bank of Nigeria (CBN) and other regulatory bodies.
Here are some fintech courses to study in Nigeria.
Financial Inclusion
Financial inclusion is a state in which finance-related services are used in almost every sector. This inclusion allows individuals, companies, and business owners to have access to useful and cost-effective services.
The goal of financial inclusion is to bring solutions to persons who do not have access to finance-related operations and people who live in underdeveloped areas.
It also aims at bringing fintech into the banking and finance sector to promote mobile banking and online services.
Financial inclusions have provided availability and accessibility of economic resources and encourage saving, investments, and insurance among citizens. This has helped in the total development of the country’s economic market.
The average Nigerian citizen has a bank account. Nigeria has recorded a financial inclusion rate of about 64.9% in recent years.
The country has had its fair share of financial inclusion struggles in previous years. Nigeria was unable to meet the national financial inclusion strategy targets causing a crippling effect on the economy.
However, the Nigerian economy keeps taking risks thus making progress with the country's inclusion rate. They also create awareness in rural areas by using fintech to bring people to the market.
Financial inclusion struggles are usually a result of people being excluded from economic operations.
In addition, fintech has helped in the growth of the banking market, making it beneficial to finance-related service providers, businesses, and users.
With fintech, people now desire to see what the financial institution is all about and eventually become included in these operations thus promoting economic growth.
Due to the role of fintech in financial inclusion, Africa and Nigeria’s economic market has become successful.
The financial inclusion rate can be measured by the following factors:
- The access people have to financial products and services
- The ability of users to trust a financial product and service.
- Payments on products and services
- How often financial services are being used by customers
- Product and service quality
- The flexibility of the introduced financial technology
- Customer security and protection
- Financial literacy
Economy Boost
Based on the data analysis report from startups, fintech has been proven to cause economic growth and development. This has improved productivity and created economic opportunities.
It has also increased users’ access to monetary products and services. We are in a digital world where everything is controlled by tech frameworks.
Also, the economic sector has taken advantage of the technology to improve the country’s economy. Innovations and risks taken by fintech have helped startups in the financial markets to take advantage of mobile tech and online transaction invasion.
Fintech has brought a lot of opportunities by creating digital services that are sold out to over a million users. This high profit from fintech has helped the country’s economy greatly.
The economic solutions provided by fintech have paved a way for increased economic growth and financial inclusions in Nigeria and Africa also. This has gone a long way in including Nigerians in the country’s economic operations.
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