In 2012, the Central Bank of Nigeria (CBN) launched the cashless policy to reduce the amount of physical cash circulating in the economy. The introduction of this new policy saw an incredible push for utilising electronic payment channels -such as online shopping portals through mobile phones or PCs- alongside cards among many other innovative options that exist today.
All efforts focused on improving transparency and reducing extra expenditures associated with cash handling processes, thereby promoting more accessible banking services for everyone everywhere, including remote communities across different Nigerian provinces.
Upon implementation, there has been a break from the somewhat unreliability and inefficacy of traditional banking services which mainly depend on physical presence or cash deposits.
The policy, which initially targeted Lagos, recorded great success which led to an extension throughout other states within the country, with a surge in digital payment adoption rates among Nigerians being the result. The cashless policy has also paved the way for the rise of fintech companies in Nigeria like Havvest.
The Rise of Fintech Companies in Nigeria
In Nigeria, fintech firms have upended the financial services sector by offering creative solutions that make banking and financial activities more simple, inexpensive, and accessible. Fintech businesses cater to Nigerians, who have historically been underserved by traditional banks, by utilising technology to deliver financial services.
The rise of financial technology companies operating within Nigeria has been exponential over recent years providing users with broad access to different types of innovative products like mobile payment technology options or online banking systems along with seamless investment opportunities amongst others.
Looking at upcoming projections, experts estimate that these projects will have a value of around $553 million by 2022, with a steady compound annual growth rate (CAGR) of approximately 22.7%. As the industry evolves further, it is expected to drive this growth rate even more significantly.
The Future of Commercial Banks: Partner, Acquire or Compete?
The growth of fintech businesses has shaken the conventional operating structure of commercial banks in Nigeria. With their innovative products and services, fintech companies have challenged the dominance of commercial banks in the financial services industry. This has forced commercial banks to rethink their strategies and find ways to level up with the service rendered in order to compete with fintech companies.
Some commercial banks in Nigeria have chosen to partner with fintech companies to leverage their technology and expertise. Others have opted to collaborate with fintech companies seeing an opportunity to tap into their technical expertise and gain access to specialised tech resources.
However, some commercial banks have chosen to compete with fintech companies by developing their own digital banking platforms and offering innovative products and services designed to capture customer attention in a landscape characterised by swift innovation.
Investment Opportunities in Nigeria’s Fintech Sector
Nigeria’s fintech sector presents significant investment opportunities for investors looking to tap into the country’s rapidly growing economy. Fintech companies are disrupting traditional financial services by providing Nigerians with innovative solutions tailored to their needs. This presents opportunities for investors to invest in companies that are driving innovation and growth in the financial services industry.
There are also opportunities for investors to partner with or acquire fintech companies that have proven their viability and scalability. Investors can provide the capital and resources needed to take these companies to the next level and expand their operations.
The Potential of Fintech in Nigeria (Havvest)
Havvest, a fintech company in Nigeria, is shaking up the traditional banking sector by offering innovative financial solutions that are more accessible, efficient, and affordable. One of the obvious advantages of Havvest is that it provides users with a user-friendly and convenient platform for financial transactions and investments. With Havvest, you can open a savings account, invest in assets such as real estate, and even earn interest on your savings.
Moreover, Havvest leverages technology such as Artificial Intelligence and Machine Learning to offer personalised financial advice to users, based on their financial goals and risk tolerance. Traditional banking rarely offers this level of tailored service.
To put this all together, Nigeria’s cashless policy has paved the way for the rise of fintech companies in the country. These companies have disrupted the traditional business model of commercial banks and are providing innovative solutions that make financial services more accessible, affordable, and convenient.
As the fintech industry in Nigeria continues to grow, there are significant investment opportunities for investors looking to tap into this rapidly growing sector.
Overall, Havvest achieves success in the fintech industry by offering users convenient and personalized financial services. Havvest is revolutionising the way Nigerians access financial services, and it is certainly a company to watch in the rapidly evolving world of fintech. So join us today by registering, saving and investing!
