Fintech startups and companies have over recent years experienced exponential growth and their impact on the economy cannot be denied or simply overlooked.
Fintech is the use of technology to solve transaction issues disrupting the traditional transaction processes, making it easier and stress-free in a secured manner.
The technology has been on the fast rise track affecting Business-2-Business, Business-2-Customer and Customer-2-Customer interactions over the years.
The overall effect of fintech is felt in every sector and by extension the economy.
The economy has greatly been improved by the technology as its innovations increased productivity level, financial development and advanced wealth creation as both the underbanked and unbanked are catered for in its service offers.
Also read, Digital Revolution: Fintech Revolution will transform payments
The economy of a country is simply the general production, distribution, use and management of resources within that country.
Fintech has greatly impacted and exerted several changes on the status quo in various sector of the Nigerian economy;
Payments
This used to be a herculean task especially for people conducting business over long distances however with fintech innovations like wallet, remittances, processors and even merchant services this payment issue has been resolved.
Organizations, Small and Medium Businesses, Institutions can now process and receive payments online.
Wealth and Asset Management
Individuals and organizations now own and manage digital assets. Various online platforms now present investment opportunities that have good ROIs.
Informed decisions can now be made by asset managers from the amount of data they gather online, this spurs diversification in most cases.
Lending
This is an area that has been greatly impacted by the technology, individuals and corporations can now access loans or borrow money with minimal effort.
Unlike the rigorous process of borrowing from the bank or loan sharks. Now even without collateral businesses can get funds from fintech platforms.
Savings
The technology has also improved the saving habits of many as there are strict disciplinary measures put in place by the saving platforms which keeps people in check.
For example, some fintech saving platforms have limited slots for withdrawals and charge a certain percentage of money when you want to withdraw your money when it is not on a withdrawal day.
Banks
Even the traditional banking sector were not left out, they are now integrating fintech services. Some banks now have mobile banking services and you can now perform various bank-related tasks without going to a bank.
POS, Mobile App and USSD codes are some of the most popular improvements to the traditional banking system.
Financial Management
There are fintech solutions that are solely for finance management, that is tracking of expenses, savings, budgeting and all other finance management activity people are prone to carry out. This has helped people maximize their income.
The effects of fintech in the economy cannot be overstated, fintech as we see it has an even greater future in Nigeria and the world at large.
As people are beginning to rely more and more on its services, it is prompting even more innovations around fintech.
About the author
Chibuzor Elizabeth Chijioke a graduate of Abia State University is a Nigerian-based entrepreneur and content writer. She trained as a digital marketer at Innovation Growth Hub. She is committed to teaching people how to apply technology to better their lives and businesses. She spends her leisure reading sci-fi and fantasy novels.
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