While fintech companies are using technology to provide easier ways for customers and client to manage their finances, there is nothing to suggest that the commercial banks are losing out, as commercial banks remain widely used in Nigeria, according to some financial experts.
With the growth in smartphone penetration and greater pervasiveness of the internet, we see the convergence of the online channels with more consumers opting to use digital channels to send money home as they see the convenience of doing so from the comfort of their homes and not having to queue to make the transaction in addition to the affordability of the online option.
Fintech companies like Paystack, PiggyVest, Kuda Bank and others are innovating past traditional institutions by making digital financial services like lending, savings, or investing readily available to people. They have been able to recognize the pain points for users, which have not been addressed by commercial banks.
Femi Oshinlaja, the COO of Cassava Fintech, a pan-African Fintech Group that enables digital financial services for Africa’s mobile consumers, said it’s highly unlikely that Fintech startups would replace commercial banks any time soon, for a number of reasons.
For Adewunmi Ojo, MD/CEO of PayNow, another fintech firm, banks need to leverage on their strengths and register their digital presence.
