FinTech- the new face of Financial Transactions in Nigeria

Share on facebook
Share on google
Share on twitter
Share on linkedin
The recent growth of FinTechs in Nigeria has superseded the expectations of Nigerians, Africans and the world at large. Following, the rise of different fintech start-ups in Nigeria, the rationale behind Cashless policy has been tenable as a number of FinTechs companies had simplified the process of cash transactions. From online payment platform like Paystack and Flutterwave to imbibing the saving culture in people by leveraging platform such as piggyvest and cowrywise, not to talk of the advent of cryptocurrency. Firstly, what are FinTechs? These are firms who leverage on technology to tackle or solve all issues concerning finance. Think of them as the new-age banking. They offer a wide range of services covering payments, cryptocurrency trading, personal finance and a lot more. Delving into some intriguing facts about Fintechs in Nigeria, we would see that Nigeria is proudly home to over 200 of the 400+ FinTechs startups in Africa. In 2019, Fintech raised over $491.6 million in funding with Nigeria leading. Now the question remains; “will fintech really phase out commercial banking?” Consider these two factors. Firstly, fintech companies had undeniably made it easier for customers and consumers at large to manage and track their finances and broad range of financial transactions. PayPal, Flutter wave and paystack are some of the top FinTechs in Nigeria. These firms have innovated past traditional banking methods by making it easier for customers and consumers at large to access loan services, payment services and investment services without having to go through rigorous processes like the traditional banking system. Many MSMEs and SME owners have testified that they been able to kick start and effectively run their businesses because of the easy and secure services offered by FinTechs. Although, some consumers have opted to use digital channels to make monetary transactions as they see the convenience of doing so hence, from the comfort of their homes and not having to queue to make these transactions. Nevertheless, Fintechs still largely need commercial banks to operate fully. An anonymous writer said “FinTechs aim to be banks and banks aim to be FinTechs” with this one can conclude that Fintechs would collaborate greatly with banks rather phasing them out . Finally, can we really say FinTechs have made massive turn over? Fintech revenues are forecast to reach an estimated US$543m by 2022, driven by increasing smartphone penetration and its unbanked population. Worthy of note is Flutter wave, apart from hosting over 290,000 businesses on its platform, the company is now valued at over $1billion dollars worthing more than 50% of banks in Nigeria. So are Fintechs the face of banking in Nigeria? We can say that they are here to stay but definitely not phasing out traditional banking in the near future.
Enterprise Ecosystem Support

Enterprise Ecosystem Support