The future of digital financial solutions in Nigeria

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One question I’ve been asking myself all week is, what does Softbank’s debut in our FinTech industry mean with its very first African investment? Arming a fintech with a $ 400 million war chest and a $ 2 billion valuation is really no joke. I’m just wondering how the Central Bank of Nigeria would react because it’s getting more and more interesting.

Either way, I would say for sure that the Nigerian fintechs, led by Remita, VPD Money, Carbon, Flutterwave and many more, have done quite well, based on how they innovated and continued to shoot. more of the unbanked in the financial drag.

Nigerian banks are also to be commended for their constant drive to innovate, especially when it comes to serving large corporations and high net worth individuals. However, I would definitely give them a low rating in some respects; for example, they almost never cared about low income people and small business owners and their needs. This is where fintechs are simply a game-changer.

Fintechs have employed the development of digital solutions for user satisfaction. The question now is: why do financial service providers, especially the banking industry, need digital solutions now, compared to those offered by traditional methods.

Since the boom in fintech startups, the evolution of customers has been brought to another level of consciousness, so even the unbankable are gradually accepting to execute their financial transactions through the use of digital solutions, even after neglecting the traditional means.

It clearly showed how digital trends can drive a noticeable transformation in politics. The impact of digital solutions on financial services has therefore contributed to increasing competition in the sector.

Digital fintech solutions have brought a more personalized experience to users than ever before. This disrupted a number of activities in the financial sphere, which in turn led to increased pressure on banks and the rapid development of new products and services.

Investing in digital solutions has not only transformed the customer experience with financial services, but has also had an impact on the workplaces where these various services are delivered. The digital transformation has been able to provide the best alignment between teams for more collaboration, fast and efficient results, as well as precise customer service.

It enabled the automation of administrative tasks, ease of workflow and the ability to simplify difficult work that would have seemed difficult under the traditional approach. It also introduced a new approach to organizational transparency. Offering digital solutions in financial services may not seem to have covered a lot of transparency topics, but compared to traditional means, it has brought more transparency options to the table.

Since digital financial solutions have gone mobile, customers have come to expect that which would ensure the ease and convenience of their business transactions at all times. Digital transformation often involves continuous experimentation and this leaves room for learning. This, in turn, produces results that inform larger changes in the financial sector.

Technology will continue to evolve, calling for greater adaptation to current processes in use. We cannot afford to get stuck in the traditional means of delivering financial services in the 21st century. Only the adoption of digital financial solutions will have a lasting impact in this industry.

In today’s digital world, technology has provided many platforms for entrepreneurs to explore new choices, amenities and avenues to satisfy their consumers. For every action taken by a digital consumer, there is a corresponding financial transaction that follows.

The continued rise of mobile banking has also changed the way financial transactions are carried out. Remember that the banking industry was one of the first financial industries to go digital. Years ago, the banking industry had to integrate risk management with the help of technology, which has played a big role in helping banks and other financial institutions tackle risk management. risks.

The impact it has had on risk management has helped unite people and processes in such a collaborative way that risk management decisions are made more quickly. This continues to have a positive impact on the financial sector. Continued efforts have been made to foster the modernization of the banking sector and fintechs are at the forefront of achieving this.

For the effective impact on the banking sector to be felt most within the framework of the financial services sector, the central funding authority must be the source, or at least partner with private organizations to drive change. massive innovations for digital financial solutions. Previous efforts have had an incredible impact as banking services have become more accessible to millions of people. The industry must continue to revolve around technology while embracing innovation, in order to meet the ever-changing needs of customers and strengthen the country’s strength.

Simply put, digital financial solutions are just the new opportunities for fintech to offer multiple options to consumers.

Fintechs providing digital financial solutions should not be seen as the enemy of the financial industry. CBN can provide a pathway for mutual coexistence, given their impact. This will ensure the promotion of economic development, innovation and healthy competition.

The recent CBN policy guidelines designed to curb certain fintechs are simply not in the best interest of the ecosystem, as investor confidence will further plummet at a time when Ghana attracts more foreign direct investment than it does. its giant neighbor.

CFA is co-founder of techbuild.africa and blockbuild.africa, platforms that deepen Africa’s tech ecosystem, and godohub.org, a social enterprise supporting innovation in Africa.

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