Abdullahi introduced me to Cowrywise in 2018, I fell in love with it. I still use it. Ever since these fintechs emerged, life has been easier for people like me.
I can receive and withdraw money anytime without any bank charges. Nobody is asking me to bring NEPA bills and queue before withdrawing my money.
Nobody is ordering me to pick Form A downstairs and check back in the next 10 working days. Haba! Who no like easy access to customer care service?
Why would I have a platform that can provide me with all these benefits and still keep my money in a traditional bank? I was still enjoying Cowrywise when I heard of Piggyvest and Kuda.
In less than two years of operation, Kuda has become the fourth most downloaded app in Nigeria. Tell me, what is another illustration of disruption?
I get daily significant interest for saving my money. Piggyvest gives me the kind of savings interest rate that no bank will ever give me. Every day I wake up, a little amount has been added to my savings.
There was a day I was so broke that I had to withdraw all my accrued interest from Piggyvest and went straight to Mama put. I gave myself an if-I-perish-I-perish stomach care.
Why should I continue with the frustration of stamp duties, ATM card maintenance fees, transfer charges, and the likes, when I can make 25 free transfers with my Kuda account?
If you have a bank account in Nigeria, you will agree with me that nothing is as annoying as receiving debit alerts for sins you did not commit.
I once paid bank charges of ₦50,000 for a single foreign transaction when I could easily use the Barter App.
My Trove App serve as my virtual Bureau de Change. Instead of trading the fiat dollar note with an Hausa man in Sabo, I simply exchange my money between my naira account and my dollar account.
Frankly speaking, if you use any of these fintech platforms, you will agree with me that the speed of transaction is faster than that of most banks.
Almost at the speed at which #Obedient supporters attack Reno Omokri on social media.
Before you eat in any restaurant make sure you make your transfer payment first especially if you use a UBA account, else you may end up washing plates or embarrassing your lineage.
But with a fintech app, you have a higher assurance that before you lift the second spoon of rice, the waiter has received the credit alert.
With fintechs such as Bamboo, Chaka, and Risevest, you can become a shareholder in companies like Facebook, Microsoft, MTN, and other stock-selling companies for as low as ₦1,000.
One day, I got a mail from Netflix notifying me of the Annual General Meeting for all shareholders to discuss the prevailing challenges in the company.
For someone who has no Netflix subscription account, yet has some shares (no matter how small) in the company, I felt like a motivational speaker.
In a digital world and a cashless generation, contactless payment is bae. Download an app. Sign up and get a virtual card for easy online transactions. Seamless lending and insurance too. Mehn! What a great time to be alive.
Nevertheless, fintech is a double-edged sword. As much as these fintech apps are solving a major problem, they are also creating more problems.
The lack of physical branches is a minus, especially when a major problem needs to be solved. Most of these fintech apps make use of social media and email to resolve customers’ complaints.
Sometimes ago, a client sent money to my Kuda Bank but it didn’t reflect in my account. I sent a complaint email to the helpdesk but I did not get a response until after 48 hours.
Before they eventually replied to my email, we had already resolved the issue via Twitter DM. What if I wasn’t on Twitter? What if it was a time-sensitive transaction?
Most fintechs are struggling to meet rural demands. This is why they deliberately exclude a set of people who have no access to the internet.
If you peradventure travel or relocate to a village that has terrible internet networks or a poor mobile signal, fintech apps may not be the best option for you.
How long will you have to travel to the town just to make a transaction on your phone?
More than ever, cyber security has become a major issue in today’s digital world.
Personal data and privacy invasion may not mean much to you until your money and sensitive information becomes a lucrative tool in the hands of the big boys.
Despite the use of blockchain technology, biometric authentication, and data encryption algorithms, the security of user data is still at risk.
Fintechs are the primary targets for hackers. Fintech companies are constantly suffering from data leakage.
The more technology and preventive measures that are developed, the more cybercriminals are studying and innovating counter-measures to beat the systems and discover loopholes in new software and apps.
For instance, some cybercriminals feed on the insecurity and instability that trails the use of public Wi-Fi access points.
According to VMWare, cyberattacks against fintechs increased by 238 percent between February and April 2020 only. A report says that there is a new cyberattack occurring every 39 seconds.
As at 2017, Nigeria was ranked third in cybercrimes globally behind the UK and the U.S. Between year 2000 and 2013, Nigerian financial institutions lost about ₦159 billion to cyber fraud.
Unlike traditional fraudsters, if you use fintech apps, not only are you more vulnerable to cyber hackers, your money and personal data are at stake too.
It means you can wake up one morning to find out that all your hard-earned money has been stolen.
To minimize the possibility of fraud and money laundering, fintechs have become one of the most regulated sectors for most governments across the world.
If the government shuts down Opay temporarily or permanently due to non-compliance or poor regulatory compliance, many people will be in a mess. Not just Opay, but any fintech app that you use.
FinePay is a licensed Fintech startup in Nigeria. In July 2018, A Post No Debit (PND) restriction was placed on its bank account on the instruction of the Nigerian Police Force due to an ongoing investigation into an alleged fraudulent transfer.
That bank account had over ₦500 million. People’s money!
In July 2022, it was reported that Kenya seized $56.7 million from Flutterwave due to suspicious financial transactions and failure to comply with financial regulations in Kenya. Flutterwave was only one of the seven firms ensnared.
$56.7 million! People’s money!
Revolut got flagged by UK regulators. The Nigerian government temporarily froze the account of some fintechs in 2021. One policy and you are gone.
One thing you should always have in mind is that no tech system is infallible.
Any platform that is dependent on technology can shut down at any time. Whether social media platforms or fintech platforms. This is my biggest fear.
The last thing you want is to have a big bill day or a purchase you need to make, only to find that you cannot access your financial accounts because the system is down.
While I have to help you see the great benefits and red flags, whether or not to japa from fintech apps is solely your decision eventually.
© Kingsley Ndimele
Your Reliable Consultant
Disclaimer:
The author of this post has no affiliation with any of the companies mentioned nor is this a marketing campaign for any of the companies mentioned. The opinions shared are entirely his, based on personal experiences too. This post is not a guaranteed reason to patronize any of the companies mentioned. If you do, you do that at your own risk.