As of July 2020, there is an estimation that there are about 210-250 fintech operators/companies operating in the Nigerian space source. There are indications that this statistics are going to be on the rise in the coming years.
According to Investopedia, Fintech which is a combination of the words "Financial technology" is used to describe new tech that seeks to improve and automate the delivery and use of financial services. Fintech was created with the core of enhancing companies, business owners and consumers better manage their financial operations, processes, and lives by utilizing specialized software and algorithms that are used on computers and, increasingly, smartphones.
It is not an overstatement to say that Financial technology is one of the new waves of disruptions in the financial sector, that is fuelled by the internet of things and the increasing digitalisation of the world.
Thus, Fintech also covers the development and use of cryptocurrencies such as bitcoin, Ethereum, Hive among others. Technology had come to stay and influence all faucets of life and the financial sector was not left behind. Financial technology also apply to any innovation in how people transact business, from the invention of digital money to double-entry bookkeeping.
With the growing insecurities within the national economies, many people are losing trust in security agencies to protect human lives and what they own, thus, handling money in their bulky state became a concern. Many started using the bank for bulky transactions, yet, there are many stories of trailers even from within the financial institutions.
Years ago, the Nigerian government began the legislation on a cashless society, yet, the citizens had not been well assured of the safety of their finances in the hands of financial organizations following their meddling in politics and many other reasons. Many preferred to bear extra costs for making physical transactions.
However, the realities of the corona virus pandemic has scaled the importance of financial technology services which has become the most selling and lucrative business in the urban areas and suburbs. Within the past four months, I have made cash withdrawals from a fuel station nearby the house due to movement restrictions.
Is this a case made for Cryptocurrencies?...
Nigeria has fleets of laughable stories each day. A few weeks ago, a renown Access Bank was accused of deducting customers' funds to the point of causing a social media campaign against them which led to the reversal to the transactions Read full story here. Many alleged to close their accounts with the bank as this was following their 2 Billion Naira "uncelebrated" donation to the Nigerian government to fight Covid-19.
truth be told, many Nigerians have lost trust in traditional financial service providers for several reasons raging from fraud, trails and unaccounted deductions. At this point, many are seeking the est alternatives to hold their funds.
While Cryptocurrencies seem to be a good alternative, most people are skeptical due to the non-regulation of crypto operations in Nigeria. The few who are involved are caught up in ponzi-like outings like the ETH Forsage as they have not learnt the art of asset organic growth.
While Hive could be a very safe place to be, there are several hindrances ranging from entry sophistication to lack of tangible backing. This therefore makes a case for communities to see the need to create tangible value for their tokens in lieu of the coming of Smart Media Tokens which will be the grand of innovation within the crypto world.
Let's hope for the better.
Posted Using LeoFinance