FinTechs to disrupt Nigeria's retail banking - PwC

Nigeria’s retail banking and payments sectors will be most disrupted by FinTech solutions, according to the PwC Nigeria FinTech Survey 2017.

The survey aimed to assess the rise of FinTech in Nigeria's financial services industry, their potential impact on market players and the opportunities that may exist following their adoption. The survey found that retail banking and funds transfer have the highest likelihood of disruption, at 92% and 85%.

PwC said:

"Their offerings range from competing financial services such as alternative lending, to additive solutions atop existing banking services, to enabling technologies for the banks themselves. Capitalising on the latest mobile, cloud and digital technologies, Nigeria is increasingly becoming home to many FinTech firms who are trying to shake up and be secretive to the banking value chain."

The PwC survey also found that Nigerian financial services firms see changing customer needs as a key factor in the changing landscape, with up to 60% of respondents indicating that up to 40% of financial services business will be at risk of standalone FinTechs by 2020.

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PwC Nigeria Advisory Partner and Chief Economist Dr Andrew S Nevin said:

"FinTechs are empowering customers by providing services that are delivered via technology applications on customer's mobile devices. This allows consumers conveniently initiate and complete transactions, connect to third party entities and access information without restrictions. All over the world, the increasing momentum of FinTechs and their success is challenging financial services players to devise a spectrum of strategic responses. However, not all FinTechs pose the same threats or opportunities. In some cases, FinTechs will be viewed as enablers to traditional innovation and continuous improvement."