The rise of fintech in Africa: How digital banking is changing the game for young people

How many young-looking people did you see the last time you stepped foot in a bank?

Or better yet, when was the last time you visited a bank?

The facts are that Millennials and Gen Z just aren’t visiting brick-and-mortar banks like their predecessors.

But why is this so?

Tech!

The speedy advancement in the financial technology world, also known as fintech, has made digital banking more convenient — predominantly amongst younger people.

But first…

What is Digital Banking

Digital banking is the digitization of banking services so that they are accessible purely online.

Unlike traditional banks which have branches, digital banks employ online platforms like apps and websites to facilitate branchless banking.

With online/digital banking apps you can access regular banking services remotely. These include:

• Making withdrawals and deposits
• Checking your bank balance
• Requesting bank statements
• Monitoring your financial records

What Do The Stats Say About Digital Banking and Traditional Banking?

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The BAI Banking Outlook Special Report in 2021 reports that less than half of Gen Zers and Millennials use the same bank their parents use.

Many other research reports from companies like Forbes, Insider Intelligence, LinkedIn, and more, point out that millennials and Gen Zers make up the biggest portion of smartphone users today.

Being that this large chunk of the African population is accustomed to digital convenience, the youth are forcing banks to move many of their services online.

The Benefits of Digital Banking

Quick look

• Convenience
• More banking features
• 24/7 access
• Heightened security
• Encourages paperless banking
• Allows for automatic payments

1. Convenience

Convenience is the biggest aspect of digital and online banking apps.

Who wouldn’t want to make transactions where they are?

With just an internet connection, anyone anywhere can use digital banking apps.

Above all, getting started is easy. Fingo Africa even lets you set up in 4 minutes. The app also comes with in-app support to ensure you always get the support you need.

2. More banking features

Unlike traditional banking which leaves other financial responsibilities like budgeting to you or as premium services, digital banking doesn’t.

Many digital banking apps have features like budgeting and expense monitoring tools to help improve your financial well-being. Fingo Africa even lets you cultivate a saving discipline for free with saving goals that you can monitor and automatically save towards while being rewarded for doing so.

3. 24/7 access

We’ve all spent what felt like eternities in banking halls waiting to be attended to; Or; Rushing to the bank before it closes.

It’s super frustrating.

Using digital banking apps such as Fingo Africa, you get round-the-clock service at your convenience.

4. Heightened security

The world of digital banking has introduced enhanced security measures that weren’t there in the banking industry before.

Some of these security and privacy protections include encrypted data and two-factor authentication (2FA).

5. Encourages paperless banking

Traditional banking is riddled with a lot of paperwork which makes monitoring and record-checking quite tedious.

Branchless banking services, e.g. Fingo, tap into the aspect of digital records to give you a painless time with records and easy access when need be vs. waiting days for your physical file to be retrieved..

6. Allows for automatic payments

To add, digital banking apps can help you automate payments to your utilities like Netflix, DSTV, rent, electricity bills, and more. This way you can make timely payments without the hassle of trying to remember when they all fall due.

Conclusion — The Growth of Digital Banking Apps

The Millennials and Gen Z generation have a tight bond with the digital world.

From working, content creation, shopping, ordering food, and accessing entertainment, just to mention a few.

Therefore, it’s only natural that they’d want a similar experience when it comes to banking as well.

As a result, many financial institutions are migrating some banking services online to cater to this highly digitized group.

Fingo Africa sets itself apart with a branchless Android and iOS banking app that’s personalized for the youth.

With an elegant interface, reduced costs, interactive messaging features, and more, Fingo Africa revolutionizes your digital banking experience by making it more captivating yet still incredibly functional.

You can join the waiting list to download the youth-focused banking app in just 4 minutes at https://fingo.africa/en.

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