Guardian of the future5/18/2023 Unfortunately, this is happening when banks are losing their trained Information Technology (IT) technicians in droves to better job openings abroad, a fact that bank chiefs have acknowledged to be affecting their Internet banking. While the conventional banks are struggling to grapple with the effect of the Naira swap, cashless policy and developing infrastructures to support the new policy, the fintech companies had long developed the structure required to lead the country’s cashless policy. To remain relevant in the country’s financial services and maximise their shareholders’ wealth, the Nigeria’s conventional banks would need to put their fingers on the pulse of the modern banking techniques as the CBN implements its cashless policy amid Naira redesign. Fintech startups have enjoyed success and growth in Nigeria due to certain factors, including the low penetration of banking services, a youthful population making good use of an explosion in smartphone ownership, and the recent regulatory changes that have increased the number of cashless transactions. The growth of Nigerian fintech is perfect proof of the untapped potential in African economies. That figure rises to almost two-thirds in the case of Nigeria. The sector raised around $440 million in investments in 2020, and more than $600 million in 2021, amounting to nearly a quarter of the total funds attracted by African tech startups. With 150 to 200 fintech startups calling Nigeria home, the country seems poised to become the uncontested African leader in the industry. The last few years have been very kind to the Nigerian fintech industry. This may lead to an entire generation of Nigerians seeing fintech as the only viable option for their banking needs, while dismissing traditional banks as slow and antiquated institutions. With both fintech and telecoms out in full swing to attract users, the traditional financial institutions must effectively and practically position themselves as the top choice in this three-way race.Īt this time of poor services in the banks, the fintech industry has done remarkable work in providing financial services to the youth, the age demographic least likely to have a traditional bank account. Fintech may have opened the door for new avenues to provide financial services to more than a hundred million unbanked people in Nigeria, and people are taking notice and rushing to them.Īmid the chaotic situation in which the nation has found itself over the cashless policy implementation, traditional banks must step up their game to remain at the forefront in the provision of financial services in Nigeria. Telecom companies, with their large and established user bases, are making quick inroad into the world of digital finance. Consequently, the customers are switching from commercial banks to the Fintech companies across the country for better and more efficient online banking transactions.
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