Without further ado let us get right into this week’s topic for discussion!💃🏾💃🏾
In recent years, the world has seen an increase in technology, particularly in the financial services sector aka 'fintech' Africa witnessed a boom in FinTech startups in 2015 and is presently home to over 300 startups.
34.2% of these startups are based in Southern Africa and 34% are based in West Africa. Specifically, Nigeria, South Africa and Kenya are at the forefront of the rise in start-up activity in the continent’s FinTech sector.
Before we go further into it, what are the various fintech solutions that intrigue you?
What is fintech? It is an abridgement of finance and technology. It refers to the technological enhancement of conventional applications, processes, products and business models in the financial industry.
Fintech was birthed from the financial crises of 2008, when opportunities arose for a disruption in the banking sector and it indeed distrupted the sector. In 2018 U.S fintechs raised over $12.4 billion in funding!
The concept is driven by tech startups and companies evolving financial processes and activities established by traditional financial institutions such as banks & investment houses.
Fintech's aim is to fill the widening gap between the provision of financial services and consumer satisfaction by reforming orthodox transactional structures through AI, P2P lending, commerce, investment, payment infrastructure, asset management, settlement of securities, etc.
The fintech ecosystem is not perfect, the industry currently faces a number of challenges including; cyber-security, data protection, fraud, lack of regulation & poor funding. However, the future of fintech promises solutions to these problems at times even through more fintech.
The future of fintech in Nigeria?
The Data Protection Bill; The bill has far-reaching consequences for players in the Nigerian fintech ecosystem. It proposes to regulate the collection, use and protection of data in ways that might potentially shake up the industry.
The Data Protection Bill; The bill has far-reaching consequences for players in the Nigerian fintech ecosystem. It proposes to regulate the collection, use and protection of data in ways that might potentially shake up the industry.
New Kids on The Block: It is likely that industries that we never imagined would compete against each other to provide similar services.
New Kids on The Block contd.: It would be interesting to see how this would be managed by both industry-specific regulators and other regulators especially with the introduction of the Federal Competition and Consumer Protection Act, 2019.
The future also promises advancements in bots and AI technology, Insurtech, rounds of funding, cryptocurrency speculation and regulation and the beginning of many startups.
Wow time flies when you are having fun! It has been an interesting hour discussing Fintech. However, we have only scratched the surface so watch this space for more discussions on fintech and other emerging markets.
@threadreaderapp enroll please
