FinTech simply means Financial Technology.
What does it mean?
It’s the use of technology to improve financial activities by digitizing financial processes that were formerly done using paper money and human interaction. In other words, it is new innovation or technology that has taken over traditional ways of conducting financial transactions.
For example, the use of smartphones for mobile banking, investment and crypto currency are technologies designed to make financial services easily accessible by the general public.
So how has FinTech made business growth in Nigeria easier?
In recent times, smartphones and computers are used for everything. Payment for goods and financial transactions are now conveniently done online.
Fin Tech is restructuring the system of financial payments, investments, commerce, asset management, security settlement and insurance.
This is great for both new and old businesses because transactions and payments can be made anytime, even outside bank hours and on weekends
In the banking sector…
Almost every bank now has short codes that their customers can use for mobile banking. For instance, GT Bank uses 737, Access Bank uses 901. This development allows easy and convenient access to banking services, even at odd hours and weekends. All you need is a mobile phone and internet access. Nothing else.
For online payments…
Back in the days, it cost a lot to integrate online payments to websites, but with Fintech, now the cost of accepting online payments is zilch.
With platforms like Paystack, card payments are becoming increasingly popular because they make it easier for businesses to accept online payments.
For quick loans and lending….
Thanks to FinTech, there are now platforms that lend money as an alternative to traditional bank loans. With private lenders like PayLater, QuickCheck, and Lidya, people in immediate need of cash can access loans for both business and personal reasons, quickly and conveniently.
For savings and financial management.
As financial technology is developing, new ways to track and manage finances are being introduced.
Digital financial solutions like PiggyBank for saving are now available for real time financial management.
Small businesses have bigger opportunities than ever before with FinTech. Lots of costs that would have been incurred with traditional financial systems have been cut off as everything is now easily accessible online.
Business owners and entrepreneurs should look out for the latest financial technologies, developments and opportunities. It would help your business expand.
All the best in your business!