Fintech can be refered to as all technological advancements that aid implementation of financial /monetary activities in better ways to achieving goals. The birth of new paradigms, new operations, new rules, new scopes have finally seen the coming together of two powerful industry in the world Social-Economical Sphere. They are the Financial world and the world of Technology.  Therefore giving rise to FINTECH. Lets define the individual terms according to what make up the Financial Technology according to Wikipedia.

They are Financial Management and Technology.

Financial management refers to the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization. It is the specialized function directly associated with the top management.
Technology (“science of craft”, from Greek τέχνη, techne, “art, skill, cunning of hand”; and -λογία, -logia) is the collection of techniques, skills, methods and processes used in the production of goods or services or in the accomplishment of objectives, such as scientific investigation.
Therefore, joining both definition, we have this definition below. 


Financial technology, also known as FinTech, is an industry composed of companies that use new technology and innovation to disrupt the marketplace of traditional financial institutions and intermediaries in the delivery of financial services.
By disruption, It means events that results in a displacement or discontinuity of a system.
The magical combination of geeks in the Tech world and venture capital that has disrupted other industries has put financial services in its sights. From payments to wealth management, from peer-to-peer lending to crowdfunding, a new generation of startups is taking aim at the heart of the industry and a pot of revenues that Goldman Sachs estimates to be worth $4.7 trillion. 

Like other disrupters from Silicon Valley, “fintech” firms are growing fast. They attracted $12 billion of investment in 2014, up from $4 billion the year before. Many of these businesses are long past the experimental phase. Yes!  They have passed the experimental phase because many startups have proved to be successful and widely accepted. Many of you know about the MMM story.
Unlike Digital Currency (Crypto-Currency). The fintech firms are not about to kill off traditional banks. The upstarts are still tiny: Lending Club has arranged $9 billion in loans through its marketplace, small change compared with $885 billion of total credit-card debt in America alone. They have yet to be properly tested in a downturn. No fintech product comes close to matching the convenience and security of a current account at a bank. Also, banks will gain from many of the innovations. That is not saying that we will not see varying degrees of improvement in the future that will threaten banks financial services. I am saying this because most FinTech firms have been proven to satisfy customers than Banks worldwide.
“Whatever you choose to pursue, make sure your customers and supporters feel a value exchange at the end of the day.” I stumbled on the write-up below this morning on Forbes website.
Let’s quickly browse through history, with the hope of tracing the birth of FinTech industry 
Fintech is a very broad sector with a long history. Most people hear fintech and think about the latest mobile app which can help them pay for their morning coffee without ever swiping a card or touching currency. But technology has always played a key role in the financial sector in ways that most people take for granted and might not ever see. In examining the timeline of fintech developments, the last 65 years paint a picture of continued innovation and evolution.
The 1950s brought us credit cards to ease the burden of carrying cash. The 1960s brought ATMs to replace tellers and branches. In the 1970s, electronic stock trading began on exchange trading floors. The 1980s saw the rise of bank mainframe computers and more sophisticated data and record-keeping systems. In the 1990s, the Internet and e-commerce business models flourished. The result was the introduction of online stock brokerage websites aimed at retail investors, replacing the phone-driven retail stock brokering model.
These five decades of developments have created a financial technology infrastructure which most people never think about, but use almost everyday. It is also important to note that throughout that 50 year period, fintech developments were also creating more sophisticated risk management, trade processing, treasury management and data analysis tools at the institutional level for banks and financial services firms. While these systems are not apparent to retail banking customers, they make up a multibillion industry aimed at supporting the needs of the financial services sector.  Bloomberg , Thomson Reuters TRI +%, SunGard and Misys MUSJY +% are just a few of the players that make up the existing set of large fintech companies that have built this institutional infrastructure.
What is striking about the last 65 years of development in these technologies is that while they became mainstream and widely used by banks and their customers, the banking sector was not threatened. On the contrary, banks grew. In looking at the U.S.’s FDIC data, from 1950 to 2014, the number of bank branches in the country grew from approximately 18,000 to over 82,000
Fintech Services Today.
In the early part of the 21st century, retail financial services are being further digitized via mobile wallets, payment apps, robo-advisors for wealth and retirement planning, equity crowdfunding platforms for access to private and alternative investment opportunities and online lending platforms. These fintech services are not simple enhancements to banking services, but rather replacing banking services completely.  So, fintech can be thought of in two broad categories, consumer-facing and institutional. It is these consumer-facing fintech services that are quickly gaining customers and competing with banks.

In the last couple of years, many fintech sector commentators and watchers have pointed to the coming demise of banks. Several have questioned whether banks will exist in the future. As the data shows, retail banking has flourished up until now. But this most recent evolution in fintech may change the banking landscape in some markets.
Most Valuable Ambassadors I want you all to know that FinTech has not only been solid in the developed world. But also in developing and underdeveloped countries. 
M-Pesa is probably the most successful example of such an app. In Kenya, the company touts a very strong user base, and the mobile wallet has become a daily used utility for purchases. This eliminates the need for a bank account among those users who don’t have complicated finances. Similar fintech apps may become the de facto savings pool for those without a bank account.
In the US there are two major FinTech brand that has stolen the show… 

fintech apps such as Venmo and Apple AAPL +1.57% Pay provide convenient and secure payment methods. They are faster and cheaper than transferring money between bank accounts and using cheques.
In the same USA there exists Lending platforms such as Lending Club and Prosper, provide lower interest rate personal loans with a maximum limit of $35,000. 
Also,  Robo-advisors are providing an alternative to traditional financial advisors.  Companies such as Betterment or Wealthfront provide a data driven automatic investment plan for retirement planning and wealth management. All of these fintech companies are strong contenders who are increasing their market share and competing with retail banking services.
At some point, consolidating services through a bank account becomes an attractive option. While there is no doubt that consumer focused fintech startups are capturing market share through the efficiency and speed they offer, it is difficult to imagine a future where banks completely disappear in developed markets.
The concern on many interested fellow minds now,  is not far from the fact that they wish Nigeria finds her place in the global FinTech sphere. Truth be told that Nigeria is over ripe for FinTech startups and a full blown industry. In fact, many startups in this industry have actually started operations and KPMG has reported that over $200M have been sunk into this emerging industry in the past two years. We have some startup brands like
SunTrust Bank – A newly approved bank in Nigeria that is based on peer-to-peer deals driven by technology. 

Cellulant –  Mobile ATM /ATM in Transit. –  A mutual funding platform where funds can be raised for Outreachs and projects. 

Pay with capture –  Powered by Access Bank with the Aim of facilitating social contributory scheme. 

Webpay –  This is an Internet portal that allows for payment of goods and services. 

Many other innovative FinTech brands that are making waves includes :

Vogue Pay





Simple Pay

Osusu mobile




*Consequences and prospects of the Emergence of FinTech.*
FinTech will see to the extinction of disciplines that are old fashioned. 
Many Job losses in the banking sector, Accounting and Book-keeping will be obsolete, most front desk jobs owners will be in a disadvantaged position, book literacy might be substituted for computer literacy and many more
The prospects includes
People oriented financial operations 

Solution to certain financial stress (Bank Queue) 

Enhanced functionality

Efficiency in Financial services 

Quick results

Financial services will perpetrate more to remote areas 

Wealth for most.
The FinTech industry is very new in Nigeria and there are several opportunities for everyone. Expecially those are in Finance, IT, Business  Management, Economic world
As either a Startup, Entrepreneur, employee or investor. The industry is a Virgin one.
I’ll be discussing more on FinTech later in the future. Because we at Explanet are seriously working hard to get a good slice in the FinTech industry cake. 
This industry is emerging in our generation as youths,  so we must take advantage of its limitless opportunities

FACILITATOR: Victor Enamudu (President, Valuex Network)
COMPILED BY: Valuex Information Management Department

© *_Explanetworks_*


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