Why the question of the importance of FinTech in Nigeria?

According to Statista, there were about 144 Fintech startups in Nigeria at the end of 2021. This shows a rise in this industry in the country. This rise can be credited to the increase in demand for FinTech companies and services.

Furthermore, the increase in demand is tantamount to the relevance and importance of FinTech in the Country’s financial sector.

But what is FinTech? And why is it important?

READ HERE:

https://cynbanews.com/the-importance-of-fintech-in-nigeria/

6 reasons for collaboration between banks and fintechs in Africa

Recent business trends in the industry have seen banks and fintechs collaborate to solve problems for each other.

Why banks should care about fintechs
The fintech industry in Africa has grown significantly over the years with different products that have matched the needs of massively growing digital users.
Ajayi said;

We have seen that they are here to stay; they are no longer just upstarts. If you think in terms of revenue or valuations of customers, they are fintechs in Nigeria that get more than $100m in revenue that did not exist five years ago.
You think in terms of valuation, there are at least three fintechs in Nigeria that have crossed a $100m valuation mark.
Ajayi points out that fintechs are here to stay, and it's time banks start paying attention. The fintech investors listed three reasons banks should care.

Unrivalled customer satisfaction
Ajayi said that being digital natives, fintech founders have focused so much on customer experience and technology, making customer satisfaction superior to what banks often provide.

Having worked at Wise, Ajayi said the fintech company at a time had an NPS score of 71 compared to 21 of its traditional competitor Western Union.

He said;

No need to think about what people will use. I don't have these numbers for banks in Nigeria, but I think it will be an interesting experience if we do the NPS score for Nigerian banks and the NPS score for some of the Fintechs.

2. Faster growth

Another point that Ajayi made was that fintechs grow at much faster rates than banks. He said;

These companies grow really really fast. Like I said, companies have achieved $100m in revenues in less than five years. They don't do committees to make decisions; they just do it when they feel like it and move very fast.

3. Age of super fintech

Ajayi said that fintech companies offering multiple products should be of considerable concern to banks. He called these fintech companies super-fintech.

These fintechs, he said, came into the market with a single product line but soon introduced more products immediately they formed relationships with the customer. He said;

https://blog.fincra.com/why-fintechs-and-banks-have-to-care-about-each-other/