For a lot of Nigerians, Fintech looks to have made payments way easier. They make wealth management more convenient and they also make them more relatable too.
They are both collaborating with, and competing against other financial institutions and this includes Paystack, Kwikmoney, Piggyvest and more. They have an impressive level of user adoption and they are actually faster too.
Where does the Problem Lie?
The problem actually lies with the sustainability of Nigeria. It’s going to require emerging and existing markets to access the capital market. Fintechs really do need to be able to raise the capital they need by making long-term investments.
They also need to trade equity-backed securities. Of course, government bonds and other assets are also available, and if they are able to bring their modernising prowess to the industry then this could mean great things for everyone.
The Industry as a Whole
It’s important to know that tech companies are struggling, but that being said, businesses are thriving. This may sound ironic but small businesses are in a better position than ever before.
Take NetBet for example, they are working hard to break through the Nigerian casino market, and they have done so successfully.
This is even when you look at the fact that the area has a poor level of internet connectivity. That being said, something needs to be done so that other businesses in the same industry can thrive and prosper without having to invest more money than they actually have.
The Nigerian Capital Market
A report has been released and it identifies a number of areas in the Nigerian market. It also shows where financial companies can play a role, while also facilitating much easier registration for operators and securities too.
Fintechs could eventually become trusted with the tech aspects of the market and the operation of it in general. This would make the process easier for individuals and it also makes the market seamless and way more efficient. Fintechs could easily deepen the level of market penetration they have, and they could also foster a much higher amount of inclusion too.
Another aspect of the financial market is whether data could build on technology such as the blockchain.
Artificial intelligence would be included in this as well, especially when you look at the insurance, finance, public welfare and personal programs.
When you look at the open banking initiative you will see that they are working on a framework for banks and this would make data available. This would need to be checked and even balanced by the SEC.
Regulation technologies would need to cater to things like privacy, fraud detection, consumer protection and so much more.
Part of the need for regulations like this would need to take consumer risks into account and they would also need to support competition as well.
Only time will tell if this is ever going to happen but right now it looks like things are moving in the right direction.