Last Updated on February 2, 2021 by Ope Quadri
Africa is one of the most populated continents in the world, as such, it is one of the biggest potentials for business in terms of market. In this post, we’ll discuss how you can use innovations in financial technology to grow your business.
The 21st century has witnessed a huge wave of generational entrepreneurs who have played a huge role in Africa’s growth through the use of technology and we hope these acts are sustained in the competitive global market space.
Nigerian tech innovations such as ALAT (which eases mobile banking, savings and internet banking), Paystack (that makes payment of bills and performance of transactions as easy as ABC!) and lots more have shown that there are room for opportunities for business growth.
Increased access to technology has necessitated a certain level of transparency. For example, back in 2016, a CNN journalist first read about the story of Bukola Dawodu, a Nigerian entrepreneur who began her business, Benefits Aquarium, after all attempt to get a job after bagging her Master’s Degree from the prestigious University of Lagos.
After her feature on the popular AWP Network.com (a platform that powers small business for African entrepreneurs through training and support), the exposure pushed her to the frontlines; she was featured on the trendiest TV program CNN Startup Africa.
The continuous and increased utilization of different forms of technological tools and platforms will enable the rest of the world to recognize the rising number and the new generation of smart generation of Nigerian startups whose voice and presence ought to be known in the global space.
For every nation in the world, there are economic consequences when technological tools are failed to be utilized in the appropriate manner especially with regards to business transactions.
With over 150 million subscribers, Nigeria is undisputed the largest mobile market. Efforts by individuals, private bodies and the government are being made to encourage infrastructural-based development.
As these efforts continue, communication tools will help to build trust and more importantly, keeping all lines of communication open remains crucial to closing business deals.
Indeed more is still need to be done in the area of training, dialogues, collaborative commitments and efforts, mentoring, transparency, strategic networking sessions, respect for the rule of law and continued access to various technological tools will help build sustainability of businesses on the Continent.
Thanks to technology. Our nation has witnessed a continuous rise in the use of smartphones and this has massively influenced the behaviour of consumers.
Whether it’s making bank transfers or paying for goods online, Nigerians are so much better at handling their financial affairs online the same manner they conveniently update their Facebook status or open an email- Very Easy!
This is considered great opportunity for small and medium enterprise (SME’s) and it’s a major reason why a lot of business is experiencing a boost in sales and outreach.
Are you still left behind? Don’t worry we will walk you through ways you can use tech to grow your business in Nigeria.
But wait, if you find it really difficult to select a business you can make money from in Nigeria, you should read the Most Profitable Small Business In Nigeria And Africa Within N60,000 you can start today!
How FinTech Is Helping To Shape Businesses in Nigeria
Fintech in Nigeria has helped grow the following businesses:
- Financial Management
The introduction of ALAT by Wema Bank & GTBanks 737 has caused big disruptions in the Nigerian banking sector today. These cool innovations have made access to top-notch financial services possible without stepping into a bank.
As a business owner, you can take advantage of these by referring your customers to these platforms- in 5 min; you get a bank account and can fund it. Don’t also forget the referral bonus you get as you bring more customers to the platform.
In other words, you help transition “unbanked people” who desire to buy or sell online to “banked people” who now have full access to quick and affordable banking operations just by using a mobile phone. This helps your customers pay you on time, you earn MORE MONEY and everyone is happy!
Almost every business (small or big, new or old) has a website. In early 2000, the cost of integrating online payments to a website was over NGN150, 000(150K) but now FinTech has made the cost of accepting online payment Zero. All you need to get started are plugins and widget.
With Flutterwav and Paystack payment option and integration on your website, you can start accepting online payments with the click of a button- Very easy, right?
Technology has increased the growth of alternate lenders which offer bigger yields to investors and cheaper, faster and more approval on loans for borrowers compared to traditional banks.
Private lenders like Lidva, Paylater and QuickCheck continue to throw in hundreds of millions of Naira into the Nigerian alternative-lending space. This makes it very easy for anyone (graduate or non-graduate) to access quick loans (business or personal) when needed.
So, what are you waiting for? Go borrow that money that will grow your business now!
FinTech has been and is still changing the way we manage our money for the better. A lot of Fintech startups are introducing simple ways to manage and track your finances.
You no longer need to use spreadsheet or a pen and paper for your financial solutions; you can use digital financial solutions to manage your finances in real time.
Examples of the best startups playing excellently in this space are Invoice NG for expense management, Piggybank for saving and Kligr for invoicing.
The gradual rise in the use of FinTech has opened a world of possibilities for Nigerian business owners.
You can now offer more business services than ever for a fraction of the price of what it would have cost before.
In the future, other tech like data predictive behavioural analytics, driven marketing, artificial intelligence and machine learning will make financial decisions easier with no guesswork involved.
As an entrepreneur with business in Nigeria, you must be forward-thinking and keep up to date with FinTech developments as an important part of you and your customer’s daily life. This will also improve your business and help you stay one step ahead of competitors in your market.