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  These recent times have seen the rise of FinTech companies around the world, especially in Nigeria. We are a proud host of FinTech companies like Flutterwave and the likes. These companies have grown from almost nothing to internationally recognized names.
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Of course, they did not grow overnight but the speed at which they moved from zero to a hundred is admirable. Unfortunately, not many Nigerians know why these companies grow at such speed. They wonder if it is a mystery or something else. Here are 5 reasons why FinTech Companies Grow rapidly in Nigeria.
  • Disruption Of Traditional Banking Practices
Before the advent of FinTech companies in Nigeria, the banking sector controlled the vast majority of finances. This monopoly meant that customers had to follow all the rudiments of filling forms and the likes before they can have access to a lot of their financial rights. Soon, FinTech companies came into the scene and began to disrupt traditional banking practices, they provided virtual account numbers and ease of registration processes. It was a no brainer that with this disruptive service they provided, in no time, the FinTech companies that arose were bound to grow rapidly.

  • Better Customer Service

Another weakness that assailed traditional banking and allowed FinTech companies to grow at such a drastic rate is the poor customer service that traditional banking offered. The traditional banking staff seemed to care little about their customer relations. On the other hand, FinTech companies came on board with the excitement to speak with customers. To hear feedback and to provide customized services. It was only a matter of time before people saw the light and ran to it.
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  • Make Multiple Investment Easy

Knowledge of investment was limited to only the banks VIIP clients. They had dedicated bank managers who ensured that these clients are kept up to date about stocks, treasury bonds and similar investment opportunities. What the FinTech companies did was that they broke protocol and shared knowledge about various investment opportunities that people could get into with as little as N5,000. They even offered a vast amount of investment opportunities in various sectors that it was hard for these upcoming FinTech startups to remain redundant.
  • Offer Competitive Interest Rates
The average interest rate in any traditional bank on a saving account is about 4%-8%. This is regardless of the fact that the bank uses customers’ money to trade and earn millions all year long. In addition to this poor interest rate, bank charges, stamp duties and card maintenance fee has already joined forces to clear the interest and eat into the amount that is in the savings account. FinTech companies saw this gap and began to offer investment opportunities with interest as much as 20% in one year and as high as 36% in 18 months. These are only a handful of reasons why the FinTech companies seem to grow at such staggering rates. They ensure to make processes as easy and as seamless as possible to enable them to meet the needs of customers and more. Featured Image Source: iPleaders
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This article was first published on 25th October 2021

grace-christos

Grace Christos Is a content creator with a proven track record of success in content marketing, online reputation management, sales strategy, and so much more.

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