Gwamcee News
As Nigerians gradually recover from the brunt of naira redesign, brought about by the Apex Bank, the Central Bank of Nigeria (CBN), which strapped many naked (literally) it is important to recognise companies in the financial market that tried to make life easier during the trumma.
FinTech which encourages the use of digital technology in the formation and delivery of financial services through mobile payments, alternative finance, online banking, big data, Robo advisors, peer-to-peer lending, crowdfunding, and overall financial management created a niche in it’s service delivery as Nigerians were seen relying on them than the usual commercial banks.
The digital platform, an integral part of the financial sector in Nigeria that makes online payments and other transactions easier and better was gradually taking over the traditional financial institution after consumers’ bad experiences with banks especially at the recent cash crisis as many has preferred to keep on with them than the commercial banks.
An entrepreneur, Eunice Tundun told The African Brands that all through the cash crises, she relied solely on her Fintech service provider for transactions because they delivered efficiently.
The young CEO, Tundun disclosed that Opay App was the one that served her all through the season, ”their network was always fast unlike my commercial bank that I have to transfer severally with so much network issues before it goes. Most times, my money get stucked, so many issues while transferring. It’s either the receiver did not get it or something else. But, once I use my OPay app for transactions, it’s always fast and the receiver gets them immediately.”
Similarly, Arikawe a user of Kuda App, also commended the swift delivery of its services compared to commercial banks and urged Nigerians not depend on them in putting huge money because it could be hacked like it was in USA in 2019-2020.
Lack of customer support, outrageous charges, and lack of access to services, especially in rural areas, contributed to why Nigerians prefer fintech services especially during the naira crunch.
Fintech companies have really disrupted traditional banking services in Nigeria because you can make your financial transactions without stepping out of your house, especially the long queue, it has also made payments very easy.
Fintech companies have made payments very easy. Flutterwave and Paystack were the leading platforms that make businesses and individuals accept online payments by just clicking a button.
The first Fintech company, said to be the most prominent but not the only Fintech companies in Nigeria at the time, ‘SystemSpecs’ was founded in 1991 by John Obaro. Mitchell Elegbe founded Interswitch in 2002, while Valentine Obi established E-transact in September 2003.
These early fintech companies paved the way for startups to rise. Now we have Flutterwave, Paystack, Paga, Remita, Piggyvest, Kuda, etc.
Opay also joined on the list of top Fintech services in Nigeria with its innovative and swift services which was highly commended during the cash crunch crisis in Nigeria.
Marketing Edge reported how Opay Network Services paved way in service delivery and growth. Opay’s PR & Communications manager, Femi Hanson in the report attributes the platform’s success to it’s innovative and proactive thinking.
He noted that long before the cash scarcity struck, Opay began to make aggressive investments in infrastructure. He added that the company built a resilient infrastructure ahead of time.
“We have significantly invested in our payment infrastructure to ensure our system can withstand a cashless environment.
“We believe that peer-to-peer payments are the future of payments in Nigeria, so we were not caught unaware, we were prepared for new users and built the technology infrastructure that supports it,” he said in a recent interview.
Thanks to Opay’s excellent performance during the crisis, it became the darling of many Nigerian micro and small business operators and its customer base increased rapidly.
Hanson confirmed that the cash redesign had a positive impact on the business. “We have seen the strongest metrics, from transaction volume to DAU & MAUs.
“We currently have over 26 million app downloads, and in the last few months, we have gained a significant number of first-time users. We will keep growing as more consumers come to trust OPay as a reliable, fast, and safe platform.”
Research firm, Frost & Sullivan said, revenue from Nigeria’s fintech industry is expected to increase from $153.1 million in 2017 to $543.3 million in 2022, a growth rate of 57%.
The recent Naira redesign in Nigeria immensely contributed to the growth of Fintech, both urban and rural areas as long as you are an Android user, Fintech penetrated with a download of any of the Apps on your phone at your purchase.
Fintech in Nigeria started when banks began to incorporate technology into their systems to promote smooth operations. The Structural Adjustment Programmes (SAP), which was introduced in the 1980s, led to increased competition in the banking sector.
However, SAP ended in 2007 when the Central Bank of Nigeria (CBN) started the Payment Systems Vision 2020. It was the first time the CBN put forward a clear policy for a future cashless society which was eventually launched in 2012.
