Fintech Startups: Disrupting Traditional Banking Model in Nigeria

Nigerian fintech entrepreneurs are using technology to provide creative financial services, which is seriously upending established banking structures to reach underserved communities, they are taking advantage of the growing use of mobile phones and the internet. These firms offer services that are frequently easier to obtain, more effective, and more efficient than traditional banking services, such as digital wallets, mobile payments, digital loans, and microfinance. In addition to changing the way financial services are provided, this disruption is promoting financial inclusion by serving small enterprises and those who were previously underbanked or unbanked.

Cynthia Azutalam, Softcom Heresaid Scaling digital products businesses, particulatly fintech products for global markets, is a critical focus for Africa from mobile money platforms to digital lending solutions, fintech products are reshaping the financial landscape, empowering individuals and business to unleash their full potential and participate actively in global economy.

With over 60 percent of the African population lacking access to formal banking services, fintech emerges as a powerful enabler of financial inclusion, democratising access to banking, payments, and credit facilities for underserved communities to enhance their services or developed their digital platforms to compete effectively in the market.

According to a World Bank poll from 2021, Fintech companies played a major role in the rise in the proportion of adults in Nigeria who had access to formal financial services, which went from 16% to 45%. Fintech firms enable people and small businesses to engage in the formal financial system by providing accessible and affordable services.

Unquestionably, the rise and quick development of Fintech companies has fundamentally changed the banking environment in Nigeria. These creative businesses have upended conventional banking procedures by providing state-of-the-art technology and user-focused solutions that meet the demands of a demographic that was previously underserved. With ongoing assistance from stakeholders and regulators, these innovative businesses may promote economic growth and build a more robust and inclusive banking system.

Unquestionably, the rise and quick development of Fintech companies has fundamentally changed the banking environment in Nigeria. These creative businesses have upended conventional banking procedures by providing state-of-the-art technology and user-focused solutions that meet the demands of a demographic that was previously underserved. These revolutionary enterprises have the potential to further propel economic development and build a stronger, more inclusive financial ecosystem for the future of the country with sustained support from regulators and stakeholders.

Traditional banks have been forced to modernise their operations and embrace digital technologies by the disruptive presence of fintech companies. Many banks have improved their digital platforms to effectively compete in the market or worked with Fintech startups to expand their services in response to the changing landscape.