We don’t need banks. We need banking.. …Bill Gates
The FinTechs may eventually provide all the banking we need.
Someone posted on facebook.
Banks and fintechs: Enemies, frenemies or friends?
This is in respect of the CBN licensing of FinTechs and the news that MTN Is To Acquire Banking Licence In Nigeria, coupled with the increasing proliferation of Mobile Money Operators.
Collaboration is the way out of this new digital world. Instead of thinking competition, you embrace collaboration to survive
But how do you collaborate with people truly eating your lunch – or minimally sharing your lunch?. Everybody is addressing the same market.., the players are becoming more, and with each new FinTech licensed the available shares become less.
Logically there is less to go round everybody.
If a FinTech can offer me a loan with absolutely no paperwork -within five minutes, or gives me far better rates as interest on a deposit that I can access whenever I wish, then the banks truly have something to worry about the way they are currently conztituted .
Couple that with the Fish seller.in Lokoja being able to receive payments though her “palasha” phone – without necessarily owning a bank account, and the disruption is complete with (the Telcos making a foray soon….)
I see more banks going under… SkyE / Polaris, Diamond, KeyStone – banks that that are already floundering can only undergo the final throes of death .
With FinTech and the attendant reduced need for physical branch networks and personnel, I am truly afraid for banks, bankers and those that depend on the banking infrastructural paraphernalia…..
A player in this market adds her opinion,
Unfortunately, many banks are stuck in the analogue era and immobilized with the fear of the impending disruptions.
They lack the knowledge / capacity to appreciate what going digital truly entails, and how they can collaborate with Fintechs as partners and collaborators to build an extended enterprise. Despite having the funding capacity they can’t even strategize along this digital tangent.
FinTechs are expanding their horizon relentlessly, competing with the traditional banks in bill payments, airtime and tv subscription topup.
They are even going into importation business indirectly, with Paga Having Secured Exclusive Partnership Deal With Orange Mall., Paga’s customers will be able to shop globally and pay locally, increasing the utility of their Paga wallets.
Quickteller on its own part, says,
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Competition is truly the soul of business
At the end of the day, this should augur well for the entire economy, and widening the financial inclusion dragnet to capture the unbanked and underhanded..