In this digital age, the penetration of smartphones and internet continue to increase and financial inclusion is becoming more critical, making this shift to digital banking inevitable.Read more about BusinessFinancial technology is one of the new waves of disruptions in the financial sector that is fueled by the internet of things and the increasing digitalization of the world, and it refers to new technology or innovation that disrupts traditional ways of conducting financial transactions. This includes digitizing processes that were previously handled with paper money and human interaction.Many Fintech products are designed to connect consumers’ finances with technology for ease of use, although the term is also applied to business-to-business (B2B) technologies as well.Fintech has made inroads with dozens of products and has changed the way consumers access their finances, and they are categorized into:
Payments
Nigeria has experienced significant growth in the development of various payments solutions in the last decade, as sending and receiving payments is one of the main motives of Fintech, and here are two examples that you can build for the payment category.
Payment Gateways
The newest advancements of online payment gateways have revolutionized payments, making it convenient, easy, fast, and accessible. Payment gateways have removed the interference of a bank for every transaction. By removing the expensive bank fees, payment gateways have given consumers considerable benefits and savings, and has helped businesses expand their reach by connecting to customers from all over the world. Payment gateway is a much secure mode of transaction, and one can make payments via digital gateways from anywhere at any time.
Mobile payments
Mobile payment has become one of the most basic needs of our lives and are used for the likes of utility bills, cash transfers, deposits, and withdrawals. Mobile payment can be used at the Point of Sale (“POS”), replacing debit card, credit card or cash payments, and also includes the use of mobile payment apps for online purchases (e-commerce, m-commerce), and peer-to-peer (“P2P”) transactions which are electronic money transfers made from one person to another, through an intermediary. A mobile payment app also saves the cost of hiring people to manage cash flow and manage finances, and in making the customer experience more productive and pleasurable.Sign up to the Connect Nigeria Daily NewsletterWith the rapid adaptation of this payment products in Nigeria, platforms like Flutter wave, interswitch and paystack are playing the lead role in making it easy for businesses to start accepting these payments platforms with the click of a button.
Lending
FinTech has fuelled the growth of alternative lenders which offer both higher yields to investors and faster, cheaper, more convenient loans for borrowers compared to traditional banks.Private lenders like PayLater, QuickCheck, and Lidya are continuing to plow hundreds of millions of naira into alternative-lending space in Nigeria, making it easy for anyone to access quick loans (business or personal) when needed.
Cryptocurrency
Cryptocurrency is an example of Fintech in action, and Crypto currency exchanges such as Quidax are helping crypto currency, spreading the knowledge and raising awareness for cryptocurrencies, and helping enthusiasts and investors make crypto investments. Quidax has made its platform seamless for trading different crypto currencies like Bitcoin, Ethereum, Ripple, Litecoin, and other cryptocurrencies using the naira.
Financial Management
FinTech is changing the way we manage our money and invest it for better and good results. Also FinTech startups are introducing simple ways to manage and track your finances.Instead of relying on a pen and paper or spreadsheet, you can now use digital financial solutions to manage your finances in real time. Good examples of Nigerian startups playing in this space are PiggyBank and Kuda bank for saving and investment, Invoice NG for invoicing and Kliqr for expense management.The rise of FinTech products has opened up a world of possibilities for consumers and businesses. As so many innovative ideas that have benefited the public, such as addressing issues of inflexible savings, bringing up quick loan strategies and investments, providing online payment gateway and seamless payments, amongst others.Featured image: Digital Payment NewsGot a suggestion? Contact us: editor@connectnigeria.com
