According to PWC 2017 FinTech Survey Report, over 62% of customers will use mobile applications to access financial services within the next 5 years.
The word FinTech is a combination of the words “financial technology”. While the term has been around for several years, it seems that 2015 is really the year that this fledgling offshoot of the larger banking industry has finally come into its own.
But what is FinTech, and how is it impacting business growth in Nigeria?
Financial Technology refers to the new and innovations that disrupts the traditional way of transacting financially.
Below are 5 of the various effects FinTech has had in businesses:
These lending services provide novel new approaches to personal loans, providing more people with lending options and faster, easier application experiences than possible through traditional financial institutions.
Other innovative mediums have been harnessed in businesses with the help of FinTech. Some of which are: PayPal, Amazon, Paystack, etc which makes payment very easy and less stressful.
Wealth Management/ Automated Investing Services
Automated investing services make use of machine learning algorithms and large amounts of data to make investing easy and not expensive by cutting out the costly human advisor element. Different brands like Betterment or Wealthfront have made investment really easy for an average person to follow up transparently.
The transparent and real‑time operation of FinTech innovations, such as blockchain and digital currencies, are generating new value streams — not just in financial services but across the economy. It helps business owners invest more in digital currencies and reinvest in their business.
Great Customer Experience
In as much as we say a lot of benefits FinTech has for a business or start up, FinTechs are not only good in developing new technologies, but they are good at fixing business problems creating a better customer experience. Your customers go through less stress and all.