When will we take the Fintech leap? — Opinion — The Guardian Nigeria News – Nigeria and World News
The cashless policy coupled with the change in the naira note has been a huge challenge for individuals and businesses. People try to withdraw the new naira notes but are offered the old notes or even coins. It’s a brouhaha in a city already frustrated with the delivery of financial services. Despite the enormous prospects of fintech, the question remains when we will take the leap. The great leap towards financial inclusion driven by financial technology.
It is nice to see bread vendors, vulcanizers, roadside food vendors and petty traders asking for bank transfers – people are coming to terms with the new dispensation and it is expected that this should be the time for the right turn. But this has not been easy for many people and businesses to adopt, with many struggling to come to terms with transferring money to pay for beans and bread, Nigerians have been a cash-based economy, but reflecting on the ongoing problem if we were going to struggle with this new arrangement and push towards financial technology adoption.
Should we struggle now as Nigerians and as consumers so that we can take that leap or do we wish to continue pushing our suffering (and dependence on cash) for the future. From a personal point of view, I think it is important to start pushing for these drivers.
As previously reiterated in my post, it is expected that this cashless policy will be well adopted and key stakeholders will act. However, it seems we are not ready. The central bank has not provided enough for the new cash, banks are struggling to cope with demands and even POS operators are not excluded from this mess.
I would like to acknowledge what Moniepoint is doing in capitalizing on this sentiment. Nice to see what those entrepreneurs do to receive payment via their banks. Nice to see employees paying their employees directly into their bank account. This is an attempt to reduce dependence on cash.
While there is a clamor for cash, the politicians asking for a postponement to the deadline, the Supreme Court and ministers intervening, I am of the opinion that we should take this lemon and make lemonade. The deed has already been done, everyone is stranded and now we have to start pushing for the digital transformation we need in the financial sector. People need to see the huge benefits of a cashless economy, we need to see the prospect of fintech and embrace this digital transformation for our own sanity.
While recognizing the inherent challenges of financial services in Nigeria – financial exclusion, rising bank fees, internet connectivity to process wire transfers and low technology adoption in Nigeria, individuals and businesses must act and respond to this struggle by changing consumer behavior and improving their business operations.
I think we need to recognize that we have taken a step back by not leveraging this struggle to make the much-needed leap forward towards fintech-influenced financial inclusion. Going forward, I believe that things should be done right now and not delayed, and stakeholders must take more responsibility.
First, I expect individuals to start patronizing those who want wire transfers. Intentionally ask if you can transfer the money, ask if they have a POS, ask if you can pay with a wallet. Let’s start this conversation, change people’s orientation and use it to bring them into the financial system.
Second, companies should start exploring the possibilities of going beyond cash; it is nice to see that Danfo now accepts cowry cards. The days of bringing just your transport money and joining people to share the change are coming to an end. Businesses must see the benefits of integrating digital payments into their businesses.
Third, fintech companies need to rise to the occasion and use this time to push their agenda. Submit your message as the solution to this problem. Let people know what they can achieve in a cashless society. Let people know what they can benefit from fintech. This is the time for fintech companies to shine and showcase their innovative solutions for individuals and businesses.
Four, the traditional banks should not rest on their laurels; the fintech people make big businesses. While the traditional banks may still be dragged with demands for cash, they need to start intensifying their efforts to change consumer behaviour. There is a need for more education, an offer of alternatives and a focus on digital transactions. These banks will be expected to invest in the much-needed infrastructure to handle the growing demands.
Five, policy makers and regulators need to strengthen this education and awareness, especially in the rural areas with limited access to cash. How do we get a palm wine tapper to have an account? How do we ensure that the palm wine bottler can accept payment to his account? How do we ensure that the palm wine bottler can confirm receipt of the payment? This verification has often been presented as a problem for cashless transactions, and there is a huge onus on the banks and their technological innovations to get things right.
Although the inherent dark side of cashless economy cannot be ignored, it is important that we start by exploring the huge prospects, especially in a country like Nigeria with huge potentials. I conclude by asserting that this is a task for all the most important stakeholders – the customer, the banks, Fintech and central banks. How do we ensure that people take this technology and use it well? It’s the vicious circle, if the infrastructure is not supported, people will feel trapped in spending cash and further make it difficult to invest in the technology, and then we continue to delay when to take the leap.
Mogaji wrote from the UK.
