Banks backed by digital platforms are said to be offering larger loan sizes and broader product offering.
According to a recent Fintech report by Genghis Capital, banks are said to be adopting Fintech at a fast rate, and with a large capital backing, coupled with regulation of the credit apps, therefore, enhancing competitiveness.
‘’The standalone apps seem more ‘popular’ with the general populace despite their higher cost of credit than banks with digital platforms.’’ The report says.
Adding that due to the banking apps being tied to their existing bank ecosystems, which rely on their existing customers. ‘’However, some banks have ventured out of their platform to address new customers. This is opening up a way for other commercial banks to venture and compete with the standalone apps’’
The report also shows that Fintech opportunities have come from the strong demand for quick and easily accessible loans, failure of formal lending channels to provide credit to large, fragmented and under-banked populace, shifting preferences for convenient and efficient financial services Leveraging existing data (big data) and analytics to expand services and product offerings.
‘’The large number of transactions shifting outside the branch, will require a more efficient system of records processing and keeping. Blockchain technology will enhance operations efficiency and cost, and collection of big data. Big data is a big opportunity in the era of artificial intelligence’’ the report says.
The report comes at a time when mobile penetration, according to the Communication Authority is reported to have hit 95% between January and March of 2018.