There are many reasons many talents in Nigeria refuse to start their FinTech companies right away. Some of these reasons include uncertainty, procrastination, insufficient funds, unsupportive government, unsuitable ecosystem, and so on.
Read more about FinTech
Moving on, it is important for us to define the term “FinTech”. As it sounds, it is a coinage of two words, “financial” and “technology.” In the simplest term, FinTech is the use of technology to facilitate financial transactions.
Most often, young talents ask themselves if the time is right to start their FinTech companies in Nigeria. They often believe that the ecosystem is not ripe for their ideas. Asides this, many FinTechs have gone into oblivion for various reasons. Whatever ideas you have, starting your FinTech right away is the best decision you’ll make.
In the coming years, especially as the pandemic dies down or move to a new normal, there are various signs to point out that starting your FinTech now is the best decision you can ever make.
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Demand
In present-day Nigeria, the demand for ease of financial transactions has increased more than ever. With the need to feel in control of their finances, more people are gravitating towards adopting FinTech services. The FinTech industry has gathered under its umbrella, every financial service available – personal money management applications, insurtech, investechs, trading and exchanges, etc. With over 25 million youths in Nigeria, most of which are digitally inclined, there is a sure sign that FinTech is an idea whose time has come.
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Expertise & Ecosystem
Ten years ago, building a FinTech company was like searching for a lake in the middle of a desert – it was relatively difficult. In Nigeria, there are over 100,000 web developers, app developers, programmers and software developers. Therefore, creating an ecosystem that can facilitate the building, running and functioning of a FinTech start-up is very possible, much more than it was years ago. Furthermore, specialized toolkits to incorporate third-parties are released on a daily basis. Finally, banks and government institutions are rethinking and incorporating digitalization of the finance industry, which will also facilitate an ecosystem that can sustain the FinTech industry.
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The Rise Of Insurtechs
According to Investopedia, insurtech refers to the use of technology innovations designed to squeeze out savings and efficiency from the current
insurance industry model. Insurtech is a combination of the words “insurance” and “technology,” inspired by the term FinTech. It is the fastest rising sector in the FinTech industry. It is data-driven and has predictive capabilities. It is powered by Artificial Intelligence that processes a person’s medical and criminal records, as well a person’s credit history and social media information. This helps these companies experience lower risks and offers the most cost-efficient options for customers. With the rise of insuretechs, Nigerian talents can easily tap into the momentum to build more effective insuretechs that can help Nigeria’s fast-rising establishment of companies to be adequately insured.
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The FinTech Is Nascent
Although, starting a FinTech in Nigeria is a bumpy one, due to several factors not restricted to hindering government policies, insufficient funding, poor power supply and poor digital ecosystem. Failing to start up your FinTech now is like failing to seize the opportunity of the internet boom in 1999. The FinTech industry, despite several clamp downs by the national government, is an idea whose time has come. As the world gravitates to complete adoption of digital and virtual living, early starters in FinTech will certainly have the lion share when the industry hits its apogee in the nearest future.
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The Rise Of Digital Currencies
From the launching of E-Naira in Nigeria to another launching of national digital currencies elsewhere, starting your own cryptocurrency investment company now is the most ideal thing to do. With the desire to decentralize the banking and financial system, and the need to control their money, developing a digital currency and investment app in Nigeria will profit you in the next decade. According to World Economic Forum, Nigerians are the highest owners or users of cryptocurrencies. The adoption is rapid; however, education on how to invest effectively in crypto is relatively low.
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This article was first published on 1st December 2021
nnaemeka-emmanuel
Nnaemeka is an academic scholar with a degree in History and International Studies from the University of Nigeria, Nsukka. He is also a creative writer, content creator, storyteller, and social analyst.
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