Financial technology, also, known as Fintech, is a technological innovation that competes with traditional financial means, in the delivery of financial service.
It uses technology, to develop the services in finance.
The use of mobile phones, for mobile banking and investing, are examples of how technologies make financial operations easier and more accessible to the people.
Africa has become a prominent platform, where Fintech blossoms, hence, bringing about positive changes on the continent.
Below are three reasons, why Fintechs are the forces of change in Africa:
Encouraging The Use Of Mobile Banking
Fintechs are now encouraging the use of Mobile Banking in Africa.
This is because, with many African now having access to smartphones, they are capable of transacting their financial issues on the go.
Over the years, the drop in the cost of phones in Africa has created a boom in mobile phone ownership.
According to estimates, in the year 2020, 634 million residents in Africa, will have a smartphone subscription, which comprises 52% of the entire population.
Patrons in Fintech money accounts will pull great changes and development, in technology Startups.
More Startups Can Come On Board, Effortlessly
The outrageous hunger, for getting online, has only triggered an increase in entrepreneurship in Africa.
The number of Startups in Africa last year, grew by 32% and funding grew by more than 70%
All over the world, investors are beginning to rise to the potentials that lie in Africa and not only does that increase the funds for the Start-ups but also roots magnificent changes, for people across the continent.
Provides Better, Easier And Safer Living
The birth of famous and successful Fintechs established the roots of the transformation Fintech drives.
Fintech is, often, associated with the western world, however, banking is not only a western thing but a worldwide affair and it is amazing, to find out a vast number of people, who do not still have access to these functions.
Fintech enables people and communities, that have never had a bank account, to send and receive money, for essential needs and also for business purposes.
This is because, people have the option, of not carrying physical money, all the time.
It has reduced the risks of getting robbed of physical cash.
Many Nigerians are, for instance, opting for the use of Fintech facilities provided by the likes of Remita and VoguePay, as well as other Fintech outfits that provides similar services and they are credited, with the notable transformation of people’s lives in Nigeria.
This will, in the long run, rub off positively on the economy, in terms of growth.
Featured Image: Forexnewsnow
Don’t miss important articles during the week. Subscribe to https://techbuild.africa/newsletter-signup/ for updates.
