FinTech (financial technology) is a catch-all term referring to software, mobile applications, and other technologies created to improve and automate traditional forms of finance for businesses and consumers alike.
Despite the recent misfortune that befell Silicon Valley Bank, SVB (a major financier of fintech), the world cannot but acknowledge the jaw-dropping growth of this sector.
This is because gone are the days of exclusive physical transactions when gigantic physical structures were built for the ease of trading.
Way back then, not much was known about financial technology (FinTech) players, who leverage applications (apps) development for the ease of doing business through online transactions.
Given the spate of unfolding new technologies emerge, people now heavily embrace the need to transact online businesses via the internet, without physical contact, which typically removes the risk of carrying physical cash from one location to another, while transacting single or multiple businesses.
This also removed the risk of travelling long distances by road, sea, or air, just to conclude business deals that ordinarily would have been transacted within minutes from the comfort of homes and offices, using online technology.
Thus, FinTech players and opportunists spotted and keep spotting the need to develop payment apps that will ease business transactions.
Notwithstanding the development, many merchants, business owners, and banks failed to see the need for such apps initially, until the COVID-19 pandemic struck and spread across the globe, and locked down economies in 2020.
The devastating effect of the pandemic, gave rise to a new normal where keeping social distance became the norm, and that was the turning point for fast-thinking FinTech players to begin to develop more financial transaction apps that enable people to trade seamlessly, without physical contact, via the internet.
The situation forced businesses to go online and it became a boom for FinTech players to rise endlessly in a bid to sustain online transactions that have cut across all sectors of the Nigerian economy.
VPD Money, a fintech firm, has said its transaction volume rose to over $200 million, which showed a 2,548 per cent increase since it started operations in 2021.
The firm stated that it had been able to onboard over 50,000 customers to date.
It said it had leveraged partnerships to introduce a unifying wallet, bank account, and AI-powered savings experience since it started.
In a statement, VPD Money’s Co-founder and Senior Product and Project Manager, Mohammed Liadi, said, “We have created a soothing platform for the unbanked and underserved.
"The unbanked people don’t necessarily mean they don’t have a job but the cost of entry to financial service is just too high for them.
"They have uncertainty about the benefits of being in the financial realm and of course, a rational decision, hence, they stay unbanked.”
He added, “With VPD Money, you can access your funds anytime, anywhere, and make transactions with ease.
“With VPD Money, individuals and businesses can carry out their financial transactions without the need for physical cash.
“Our platform offers instant notification of payments, reduced costs, and a better user experience; thus, making VPD
“Money is a reliable option for cashless transactions during this cash crunch.
“In a real sense, VPD Money is the only fintech at the moment really offering free transfers for our users.”
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