Achieving more inclusive financial solutions with Fintechs
The demand for smart and innovative solutions that facilitate seamless digital transactions has become more critical. How tech companies navigate and meet these expectations hinges on their profound understanding of marketplace challenges, combined with their astute ability to stay ahead of the curve through predictive intelligence and product engineering
Michael Stevens, 30, was leaving home for work when his smartphone beeped with a familiar Facebook message alert. It was a reminder for him to send monthly allowance to his 80 year-old mother living in Ijebu Ode, Ogun State.
His wife, Victoria, had reminded him the previous night of the allowance and how badly his mother needed the money to pay her medical bills.
Two payment options came to his mind. The first was to pay through internet banking platform of a commercial bank. The other options were to use Zest QR Codes, Quickteller or Paga network.
Few minutes later, he went for the Zest QR Codes option. Zest is a platform orchestrator connecting businesses and lifestyles to payments. It is the fintech subsidiary of Stanbic IBTC Holdings Plc.
Fintechs, such as Quick-teller, MoniDey, Baxi, PocketMoni, Unified Payments, Paga, Remitta and Cellulant, are now part of the financial system, offering banking services to both the banked, underbanked and unbanked.
In the Fintech space, Zest has a mission to revolutionise the e-payment sector and boost e-commerce penetration. Positioned to become the leading end-to-end fintech services provider, the visionary leadership of Ifeoluwa Adekunle-Yusuf, Zest Vice President, Products and Engineering, guides the company’s technological advancements.
Zest is a solutions-driven platform with a mission to reshape the e-payment landscape. Recently, the company unveiled a bouquet of revolutionary product offerings in key cities such as Lagos, Port-Harcourt, Kano, and the Federal Capital, Abuja. These offerings are meticulously designed to meet the e-payment needs of consumers, businesses, application developers, and other fintech service providers. Zest is primed to introduce game-changing innovations that will simplify the way businesses operate and enable individuals to navigate the financial landscape with ease.
Customisable solutions for every business
Zest is aiming to catalyse the next wave of growth in the financial services sector, benefiting businesses, consumers, and technology enthusiasts alike.
One of Zest’s key strengths is its ability to provide product design and development services tailored to the unique needs of each business. It is meticulously crafted to manage advanced software, optimising daily transaction volumes.
The platform offers customisable product offerings for e-commerce stores at no charge, providing increased visibility through the Zest marketplace, the central hub for all sellers. This commitment to customisation and ease of use sets a new standard for e-payment solutions.
Zest executes a resolution-driven platform orchestration strategy that serves consumers, businesses, and application developers. This approach eliminates barriers and simplifies the process for businesses looking to establish their online presence and for other fintech service providers.
By providing multiple payment rails through a unified gateway that includes cards, USSD, QR codes, and account-based payments, Zest offers unparalleled flexibility.
Equipped to manage payments in over 40 different currencies, Zest is a global solution. Consumers can easily download the app from both the iOS and Android stores. The bank-agnostic app provides various payment options, including cards, USSD, and wallets.
Innovative product design
Ifeoluwa Adekunle-Yusuf, the Vice President of Product and Engineering at Zest, with her exceptional skills and insights, leads a team that crafts products that meet businesses’ needs for innovative payment solutions with a flawless user experience. She is vast in digital payments product development, business expansion, and market penetration, with a deep understanding of the intricacies of payments and card scheme connectivity.
Driving Zest to emerge as the preferred end-to-end fintech services provider for businesses and individuals and to offer product design and development services tailored to the unique needs of each business, Ifeoluwa embodies the essence of professionalism.
Her background is in products and engineering, with extensive knowledge in MSO setup, MID configuration, and technical implementation. Ifeoluwa holds various certificates in Product Management, Fraud Management, Agile, Business Analysis, and Process Management. Her proficiency in Secure Payment Gateways and digital skills further underscores her commitment to excellence.
Zest translates business requirements into innovative product solutions through a logical and organised approach. With the spirit of innovation and change that defines Zest, it seeks to continually improve smart payment options, integration, and e-commerce functionality. Zest enhances payment options, makes integration seamless, and makes e-commerce platforms more efficient.
As technology continues redefining how we conduct financial transactions, Zest is a shining example of innovation with a purpose, creating customised solutions, enhancing the user experience, and breaking down barriers in the fintech landscape.
Understanding Nigeria Fintech industry
According to McKinsey & Company report, banking in Nigeria remains an attractive sector, with over $9 billion in value pools, but despite high levels of competition, the vast majority of consumers are underserved.
Lack of access to services, especially in rural areas, issues of affordability, and poor user experience all contribute to the frustration consumers experience right across the customer spectrum.
This has created an opening that Fintechs have been quick to take advantage of, with many stepping up to develop enhanced propositions across the value chain to address pain points in affordable payments, quick loans, and flexible savings and investments, among others.
One of the significant trends in Fintechs is the increasing adoption of mobile payments, which offers convenience for users to make transactions from their mobile devices. This service has bridged gaps in financial inclusion by providing basic banking services even in remote areas where traditional banking may not be accessible.
At the same time, a youthful population, increasing smartphone penetration, and a focused regulatory drive to increase financial inclusion and cashless payments, are combining to create the perfect recipe for a thriving fintech sector.
Nigeria is now home to over 200 fintech standalone companies, plus a number of fintech solutions offered by banks and mobile network operators as part of their product portfolio. Between 2014 and 2019, Nigeria’s bustling fintech scene raised more than $600 million in funding, attracting 25 percent ($122 million) of the $491.6 million raised by African tech startups in 2019 alone—second only to Kenya, which attracted $149 million.
The Central Bank of Nigeria (CBN) set N2 billion capital benchmarks for firms involved Fintechs and payment operations.
Those in the top category, dealing with switching and processing, as well as mobile money operation, will have a N2 billion shareholders’ funds unimpaired by losses.
According to a document conveying the guidelines, six categories of payment operators were newly approved by the CBN.
They include those involved in switching and processing, mobile money operators, Payment Solution Services (PSS), Payment Terminal Service Provider(PTSP), Payment Solution Service Provider (PSSP) and Super Agent licenses respectively.
The top category will escrow refundable N2 billion into a CBN account. The payment must be made in full single lump sum. Escrowed funds are to be invested in treasury bills, subject to availability of treasury instruments, which would be refunded accordingly.
For PSS, the CBN said an escrow of refundable N250 million must be deposited with the CBN, while for entities applying for the three licences will e: PSSP – N100 million, PTSP – N100 million, and Super Agent – N50 million.
The same conditions as the first category apply but with varying amounts. “All written applications should be addressed to the Director, Payments System Management Department, Central Bank of Nigeria, Abuja, accompanied by evidence of payments of application fee and other documentary requirements,” the CBN said.
For all of the aforementioned licences, the apex bank said all applicants would be required to pay an application and licensing fee of N100,000 (non-refundable) to the CBN, while a licensing fee of N1 million is to be paid before the issuance of the final licence, if successful.
Analysts insist that Nigerian fintechs do not pose any challenge to top-tier banks across the country.
According to industry experts, rather than compete, Nigerian fitechs should collaborate with Nigerian top-tier banks.
According to them, Nigerian banks have strong balance sheets and a dominant financial position in the market and what is needed between both is collaboration rather than competition.
They explained that Fintechs should leverage the backend infrastructure of traditional bank’s IT when they roll out new products and services considering the regulatory cost which might be expensive or difficult to meet but are already embedded in banking infrastructure.
Global Fintech industry
Fintech has been known in various forms since the very beginning of the 20th century, at that time we could witness the first innovative solutions implemented with the help of Fintech such as the first Automated Teller Machine, online banking, or platforms such as PayPal.
All from above, payment solutions have a statistically significant positive effect on customer experience, what increases comfort in use of financial technology.
Nowadays, innovative payment methods, such as biometric characters, are implemented to slowly replace cards, telephones, smartwatches, mobile devices, ECT.
IBAS World is currently working on developing a method enabling digital payments even without biometric signs. Both the Internet of Things (IoT) and Blockchain have had an impact on the world of financial solutions.
Leading countries in the Fintech space
Since 2012, the UK’s Fintech sector has received over $2 billion in venture financing and over £100 billion through mergers and acquisitions from financial services firms. The UK has one of the most technologically advanced financial services industries in the world as a result of these investments.
The UK government also makes significant investments in the FinTech industry through funding programs and regulatory changes that make it easier for fintech businesses to operate. It can be said that basically, investment drives economic growth.
Examples of FinTech companies on the UK market include Hydr, FreshPay, Triple Tied Out or CostTracker.
The US has a robust financial technology ecosystem. FinTech services have been simplified by companies like Stripe, Coinbase and Robi
