What is Fintech? Financial technology is the technology and innovation that aims to compete with traditional financial methods in the delivery of financial services. It is an emerging industry that uses technology to improve activities in finance. The use of smartphones for mobile banking, investing, borrowing services, and cryptocurrency are examples of technologies aiming to make financial services more accessible to the general public.
Financial technology companies consist of both startups and established financial institutions and technology companies trying to replace or enhance the usage of financial services provided by existing financial companies.
To understand the future and opportunities available in Fintech business in Nigeria, it’s important to understand how a Fintech business comes into being and what it takes to build a successful fintech model. Fintech companies encompass a broad landscape of businesses, generally around financial-oriented services, and products.
By combining the stability, product variety, customer knowledge and financial strength of traditional banks and financial institutions with the data enrichment, user experience and modern platforms that quality fintech firms can provide, both can build an amazingly rewarding experience for each other and their customers
The real goal for Fintech companies is to find the right mix of fintech solutions and traditional banking. Play to the tried and true strengths of each type of organization while also opening up to new opportunities to access tools that will empower consumers and reinvigorate marketing opportunities.
Fintech are committed to delivering the next generation financial experience to the consumer, so those partnerships can build an even better experience for the consumer than either organization can provide on their own. This isn’t about stealing market share … it’s about building a new paradigm for everyone.
Opportunities and Benefits of Fintech:
Fintech improves the health of traditional financial institutions by enhancing performance and improving profitability. When banks and financial institutions see fintech firms as partners in this journey, rather than firms selling products, the opportunities begin to expand.
- Fintech solutions provide a way for legacy financial institutions to improve customer retention and preference. Data enrichment is an extremely powerful tool that quality fintech firms bring to the game.
- Fintech firms provide an opportunity to enhance loan portfolio diversification. When you have the ability to become more granular with each customer, you are more likely to find (and offer) consumers the exact products they need, when they need them.
- Fintech can help solve industry-specific points of pain, like securing credit card processing, transferring money, and processing loans quickly. With a strong fintech partnership, traditional financial organizations benefit from the leverage of a state of the art, secure network that can manage time-consuming and lengthy tasks quickly and effortlessly.
- Fintech data can provide financial institutions a keener insight into what their customers are doing with their money. This again speaks to the power of data enrichment fintech partnerships can provide. Further, the power of the cloud that quality fintech firms have tapped into is another tool in delivering product offers and services specifically tailored to individual customers in real time.
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