FINTECH

STRATEGIES FOR PARTNERING WITH BANKS AND FINTECH TO CREATE INCOME

Published

2 years ago

STRATEGIES FOR PARTNERING WITH BANKS AND FINTECH TO CREATE INCOME

Benefits of fintech and banking services. Banks are able to provide their customers with beneficial tools and services that they might not otherwise be able to provide without a huge investment thanks to partnerships with fintech companies. Application software interfaces (APIs) are used to add alternatives that can be incorporated with third-party banking platforms. Banks can still connect directly with their customers when using these APIs, allowing businesses to exceed and meet customer expectations and demands. In fact, the simplest local bank can handle initial customer verification, account opening, and sometimes even consumer lending through a digital front-end relationship without requiring the user to go to a branch.

Collaboration between the fintech industry and banks seems necessary if innovation is to benefit from it. For the best source of revenue, financial institutions need new prospects. This requires a significant change in how they prioritize digitization activities with fintech partners. It should come as no surprise that collaboration between banks and fintech is flourishing. The fintech sector has access to newer technologies that allow banks to expand their customer base for their services. People who want to use financial services in a semi-frequent setting turn to established fintechs companies like paystack as a payment alternative. online connection between people is growing. As a result, this allows fintech firms to use rapidly evolving technologies to keep changing the environment for the banking system.

The partnership between a bank and a financial technology startup is mutually beneficial. Win-win: This partnership enables financial technology companies to expand their operations and provide clients lower-cost services, while also assisting banks in offering their customers a handy service that will take years to build. Although there are chances for collaboration involving financial institutions and fintech firms, very few banks take advantage of these business opportunities.

Additionally, Partnerships are so valuable because of the difference between these two perspectives. more so, it has the stability of well-established financial services, reliability with authorities, and a patron that continues to trust banks; whereas on the other side, fintech startups have the opportunity for creativity and the flexibility to design customized solutions for specialized consumer segments.,

Most customers want their banking institutions to provide them with services and merchandise that are immediately tailored to their needs. With the help of successful cooperation between the bank and fintech firms. fintech companies can implement innovative technologies much faster than the bank alone. Fintech enterprises can introduce fresh products or services easily and quickly, as they are not limited by outdated infrastructures and legacy systems. Due to their agility, fintech companies can better meet customer needs, take advantage of new market possibilities or adapt to any market development.

According to investment data from Partech, 63 percent of Africa’s total investment capital went to fintech companies in 2021, making it the most well-funded tech industry in the region. However, there are many factors why fintech is popular in Africa.

There were 350 million unbanked adults in Africa at the last count. 70% of the US$1 trillion global digital payments economy is in Africa, However, the fintech industry is often seen as competitive in the traditional financial services industry.

Why include banking services in third-party apps/Fintech apps?

Banks can increase their accessibility for depositors and increase their market share by collaborating with third-party applications. There are no geographic limitations to integrated banking capabilities and fintech applications, and they can be customized to meet the demands of particular consumer groups or types of businesses. The implementation of integrated financial services for applications using publishing tools and workflows can happen in as little as 6-8 weeks thanks to the customization options and the use of these technologies by fintech institutions.

Expense and theft minimization priorities are misplaced as well. Partnership development, implementation, and expansion typically take time. Banks urgently need to cut costs and fraud.

It’s a shame because there is potential for banks to collaborate with fintech in order to increase income and set themselves apart from mega banks.

Benefits of fintech and banking services

Exchanges for Trade And Block Chain Software

Online investing in stocks, treasuries, T-bills, coins, and other commodities is made possible by financial technology firms and cryptocurrency exchanges. Both local and global, they are possible. They work with payment service companies to accept payments in your own currency for cross-border transactions. You can also track your investments through their portal. Customers can easily pay fees with money along with coins like bitcoin and Ethereum thanks to digital currencies like Bundle Africa, a global payment network for money and coins. In addition to trading, protecting your Naira from inflation, and making quick money with USDT, Bundle also offers a referral scheme that allows users to refer friends and earn commissions. Peer-to-peer payment apps such as Paystack, mobile banking apps, online payment software, etc. are some examples of these. These Fintech businesses support your ability to profit from sales. They offer user-friendly systems that make it easy to disperse services and collect payments. They provide paid services at significantly cheaper prices than conventional service providers. As a result, users will benefit more.

Financing and savings

They are numerous fintech area provides conventional banking systems, systems to save money in piggy banks, systems to invest in stocks, etc. In addition, they provide monitoring solutions that include linking to real savings accounts and analyzing daily income and expenses. The general concept is to help you lock in a person’s funds for a specific goal, such as raising funds for additional investments. Some sites also offer the chance to buy and save money, maintaining or even increasing the value of money, including during deflation.

Fundraising institutions and crowdsourcing

Instead of employing traditional investors, crowdfunding and fundraising companies can help you or your business raise money from ordinary people. These businesses provide platforms for donations to help various causes, including corporate charitable work. GoFundMe is one such instance. In essence, users receive the funds if the mission is found to be legitimate. Fintech companies are extensive and many. By using your goods and services, you can generate income in many ways.

How banks and fintech companies can work together to drive significant innovation

Traditional or conventional banks have historically been distrustful of working with financial technology companies and banks. However, recent years seem to be showing a change in this. As financial technology companies continue to innovate modern banking services, many commercial banks now realize how much they have to offer. And so far, it seems that these developments will soon slow down.

Here are some ways that collaboration between all financial institutions and fintech firms can be beneficial:

Banks can provide their fintech partners with APIs in addition to traditional financial services. In return, partnerships between fintech and banking institutions can give fintech firms the ability to expand their services and become a central hub for the convenience of their customers.

Banks can help their fintech partners get around the strict restrictions associated with the financial sector. This makes it possible for fintech companies to gradually expand their market share.

Direct access to the latest software or technology is another important benefit of banking and fintech partnership. These are typically provided to financial institutions and other organizations under a white label brand. In a nutshell, banks will greatly benefit from collaborating with fintech companies to create cutting-edge solutions. with less emphasis on building and maintaining your own in-house technology to save additional money and time.

Increase Brand Reputation: Collaborating companies can profit from each other’s positive brand reputation. Also, it can help to increase customer bases from all over.

In conclusion, partnerships between banks and fintech companies can accelerate growth and help avoid scaling difficulties. It can also expose financial institutions to new categories of consumers, helping to improve market credibility. In response, this contributes to increased revenue. Sometimes a fruitful partnership can be a wonderful approach to improving customer products. This could facilitate better technology convergence.

services for negotiating payments: Two problems with paying bills affect banks: Only 14 percent of customers use online bill payment services from their bank or credit union, and the majority are older customers. Why does it matter? Because paying bills through banking websites and apps gives banks the chance to help their customers make smarter financial decisions, which (ideally) encourages customers to be happy and be a part of it.

However, banks cannot provide bill payment advice if their customers do not use their websites or mobile applications to pay their bills. Moreover, over the past few years, they have tried unsuccessfully to reverse the trend toward direct payment behavior.

Investing in digital currencies: As of January 2020, the trading of Bitcoins, Ethereum, and other tokens has grown significantly. In February, it hit a new high and stayed there during the peak of the corona virus outbreak, which ran from March to May. About one in ten African adults owns some form of cryptocurrency, and half of them claim to have used it to buy goods and services. Although many banks prohibit their customers from using their bank accounts to buy cryptocurrencies, the integration of cryptocurrency investments creates new challenges for banks about whether to offer services linked to money. cryptocurrencies in general.

As a result,

More and more clearly, it is becoming clear that banks and fintech companies can collaborate to the advantage of both parties as technology advances. Banks are trying to take advantage of the flexibility offered by fintech firms. The purpose of fintech firms is to scale and enhance the customer experience of the existing banking industry. This has recently resulted in a series of explosive alliances. As these alliances grow, they provide more cutting-edge solutions that improve customer satisfaction and generate more money.

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FINTECH

Kazang Pay launches card acquiring service in Zambia

Published

2 months ago

Christopher

Kazang (www.Kazang.com), the prepaid value-added services (VAS) and card acquiring business within JSE-listed fintech Lesaka Technologies, has launched its Kazang Pay card acceptance solution for merchants in Zambia. Kazang Pay makes it affordable for merchants to accept card payments on the same Kazang terminal they use to sell prepaid products and services.

Kazang Pay launches card acquiring service in Zambia

The Kazang Pay enabled terminal in Zambia accepts VISA debit and credit cards as well as mobile wallet payments. Payments are settled to the merchant’s Kazang wallet on the same day. It’s as easy as letting the customer tap or insert their bank card and enter their PIN on the secure scramble PIN pad.

Kazang operates around 12,000 VAS terminals in Zambia. The goal is to enable the majority to accept card payments over the next six months. Benefits to merchants include low transaction fees and no monthly terminal rental fee for those that meet a modest monthly transaction threshold as well as the opportunity to grow their business through card acceptance.

Kazang is Zambia’s largest VAS point-of-sale terminal provider, enabling mobile money payments, bank and mobile money cash in and out, bill payments, airtime, Zesco, and many other prepaid services on one platform. The addition of card acceptance makes the platform even more comprehensive for merchants and consumers alike.

The launch of Kazang Pay in Zambia follows the introduction of the solution in South Africa, where around 60,000 small and micro merchants use Kazang Pay to accept card payments. In Zambia, there are around 3.8 million debit, credit and ATM cards in issue and 41,000 point of sale (POS) terminals in place. The value of POS transactions has grown to K 111.4 billion by 2022 from less than K 20 billion in 2018, according to the Bank of Zambia.

Says Leon de Wit, managing director at Kazang Zambia: “Zambia has made enormous strides in terms of financial inclusion, with card usage and penetration growing at a rapid pace. With Kazang Pay, merchants can now easily accept card payments on the same all-in-one terminal they already use for vending of VAS products.

“Card transactions help merchants to grow basket sizes and potentially attract more customers, and at the same time, reduce the risks and costs of handling cash. Moving towards digitalised payments will also enable merchants to track sales, manage cash flow, and create a footprint that could make it easier for them to access loans.”

Ashley Naidoo, director of Kazang Pay in South Africa says: “Our Zambian merchants have eagerly embraced our card acquiring service as a valuable part of our one-stop solution. Following the launch of Kazang Pay in Zambia, we have seen higher VAS sales across our merchant base and much-improved merchant retention and with our card acquiring solution we now appeal to a broader merchant base.”

Distributed by APO Group on behalf of Kazang.

ABOUT KAZANG:
Kazang (www.Kazang.com) is a leading provider of cash and digital solutions to merchants in Southern Africa’s informal economies. Our fintech solutions include a diverse range of value-added services (VAS), card acquiring, secure cash vaults and supplier payments platforms. Operating with a network of approximately 90,000 active devices, we process approximately 2.2 million transactions daily in markets such as South Africa, Namibia, Botswana, and Zambia.

We are dedicated to helping small and medium merchants grow and succeed, through increasing their sales, making their businesses more efficient and reducing their risks with its holistic portfolio of products and services. Kazang is a member of Lesaka Technologies (https://LesakaTech.com).

ABOUT LESAKA TECHNOLOGIES, INC:
The Connect Group and Kazang was acquired by Lesaka Technologies, Inc. in April 2022. Lesaka Technologies, (Lesaka™) is a South African Fintech company that utilizes its proprietary banking and payment technologies to deliver superior financial services solutions to merchants (B2B) and consumers (B2C) in Southern Africa. Lesaka’s mission is to drive true financial inclusion for both merchant and consumer markets through offering affordable financial services to previously underserved sectors of the economy. Lesaka offers cash management solutions, growth capital, card acquiring, bill payment technologies and value-added services to retail merchants as well as banking, lending, and insurance solutions to consumers across Southern Africa.

Lesaka has a primary listing on NASDAQ (NasdaqGS: LSAK) and a secondary listing on the Johannesburg Stock Exchange (JSE: LSK). Visit www.LesakaTech.com for additional information about Lesaka Technologies (Lesaka ™). $LSK / $LSAK

Bitcoin

Binance expands crypto access in West and Central Africa with mobile money integration

Published

2 months ago

Christopher

Binance expands crypto access in West and Central Africa with mobile money integration

This new service currently supports only BUY transactions, further simplifying the entry point for new crypto users in these regions

Binance (www.Binance.com), the world’s leading blockchain and cryptocurrency infrastructure provider continues to drive innovation and expand access to cryptocurrency in Africa, now allowing users in Benin, Cameroon, Ivory Coast, Democratic Republic of Congo (DRC), Togo and Senegal to purchase crypto directly through mobile money payments enabled through local partnerships.

This new functionality further strengthens Binance’s commitment to providing simple and secure access to cryptocurrency for users across the continent, reinforcing the platform’s vision of financial inclusion.

Samantha Fuller, Spokeswoman for Binance says “We remain focused on advancing financial inclusion and delivering user-friendly solutions for crypto adoption across Africa. This expansion into West and Central Africa is a significant step in our mission to increase crypto adoption, providing millions of people with more direct access to the global digital economy”.

This new service currently supports only BUY transactions, further simplifying the entry point for new crypto users in these regions, while providing them with a reliable and secure platform to acquire digital assets.

How to buy crypto:

Log in to your Binance app and select [Add Funds] from the homepage.
Choose your local fiat currency you wish to use by selecting the currency in the top-right column.
Follow the instructions to complete your crypto purchase.
Distributed by APO Group on behalf of Binance.

About Binance:
Binance is the world’s leading blockchain ecosystem and cryptocurrency infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. Trusted by millions worldwide, the Binance platform is dedicated to increasing the freedom of money for users and features an unmatched portfolio of crypto products and offerings, including trading and finance, education, data and research, social good, investment and incubation, decentralisation and infrastructure solutions, and more. For more information, visit: https://www.Binance.com

Risk Warning: Digital asset prices are subject to high market risk and price volatility. The value of your investment may go down or up, and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. Past performance is not a reliable predictor of future performance. You should only invest in products you are familiar with and where you understand the risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser before investing. This material should not be construed as financial advice. For more information, see our Terms of Use and Risk Warning.

BANKING

Financial Analysis: A Comprehensive Study of The Well-Being of A Country

Published

1 year ago

softchris4ol

Financial Analysis: A Comprehensive Study of The Well-Being of A Country

Understanding the financial stability of a country requires a thorough understanding of financial analysis. In order to offer insights into the overall financial stability and overall wellness of the country, it entails evaluating a range of economic indicators, financial performance, and market movements.

In this article, we will delve into the fundamentals and importance of financial analysis in evaluating a country’s economic situation.

Financial Analysis: A Comprehensive Study of The Well-Being of A Country

THE HISTORY ABOUT FINANCIAL ANALYSIS

Ancient Beginnings:

The roots of financial analysis can be traced back thousands of years. The ancient Mesopotamians, Egyptians, and Greeks were among the pioneers of documenting financial transactions, creating basic records of assets and liabilities. These early attempts laid the groundwork for the concept of financial analysis through the study of financial statements and ledgers.

Medieval Europe:

During the Middle Ages, Europe witnessed the rise of merchant guilds and the emergence of double-entry bookkeeping. Italian mathematician and Franciscan friar, Luca Pacioli, is often credited with formalizing double-entry bookkeeping, publishing his seminal work “Summa de arithmetica, geometria, proportioni et proportionalita” in 1494. The concept of balancing debits and credits within financial records formed the basis for modern financial analysis techniques.

Industrial Revolution:

The Industrial Revolution in the 18th and 19th centuries revolutionized business and the need for financial analysis grew rapidly. As companies expanded and diversified, investors began demanding more comprehensive financial reports to assess the potential risks and returns of their investments. The birth of limited liability companies further accelerated the need for financial analysis, as shareholders sought transparency in the performance of their investments.

Modern Era:

The 20th century witnessed significant advancements in financial analysis techniques. The advent of electronic computing in the mid-1900s enabled the processing and analysis of vast amounts of financial data, leading to the development of sophisticated financial models and ratios.

The Great Depression of the 1930s laid the groundwork for modern financial analysis as regulators sought effective ways to prevent future economic crises. The establishment of the U.S. Securities and Exchange Commission (SEC) in 1934 brought about standardized reporting requirements, including the filing of audited financial statements. This increased transparency and standardized financial reporting provided analysts with a more accurate and consistent basis for their analysis.

The Rise of Quantitative Analysis:

In the latter half of the 20th century, the growth of computing power and the availability of large data sets propelled financial analysis into new territory. Quantitative analysis, utilizing statistical models and mathematical algorithms, started gaining prominence. Financial analysts began incorporating complex mathematical methods to assess investment opportunities, risk management, and portfolio optimization.

Modern Financial Tools:

With the advent of the internet and the digital age, financial analysis has become even more accessible and data-driven. Sophisticated software programs, data analytics tools, and artificial intelligence have revolutionized the way financial data is analyzed and interpreted. In recent years, technologies like machine learning have been leveraged to develop predictive models that can assess future trends and make accurate financial forecasts.

MEANING

Financial analysis is the process of evaluating businesses, projects, budgets, and other finance-related transactions to determine their performance and suitability. Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to warrant a monetary investment.

Financial analysis is a fundamental tool that allows organizations and individuals to assess the past, present, and future financial health of a business or investment. Through a systematic examination and interpretation of financial statements, ratios, and other key indicators, financial analysis helps in making informed decisions, optimizing resources, and improving overall financial performance. In this article, we will delve into the meaning of financial analysis, its prominent components, and its significance across various sectors.

Financial analysis involves scrutinizing financial data to evaluate the performance and profitability of an entity. It assists in quantifying the effectiveness of financial decisions, identifying trends, predicting future outcomes, and benchmarking against industry standards. By analyzing financial statements, investors, analysts, and other stakeholders gain valuable insights into the financial position, liquidity, solvency, and operational efficiency of an organization.

FUNDAMENTALS OF FINANCIAL ANALYSIS IN A COUNTRY

Gross Domestic Product (GDP): GDP is a primary indicator used to gauge the economic performance of a nation. Financial analysts analyze GDP growth rates and its components, such as consumer spending, government expenditure, investments, and net exports. This analysis helps in determining the overall strength of the economy and identifying areas of potential growth.
Trade and Balance of Payments: Trade analysis focuses on a country’s imports, exports, and balance of payments. Evaluating trade patterns helps identify sectors driving the country’s economic growth, trade imbalances, and potential risks to the economy from external factors such as changes in global demand or disruptions in supply chains.
Inflation and Interest Rates: Analyzing inflation rates and interest rates provides insights into the stability of a country’s economy. High inflation erodes purchasing power, while high-interest rates can impact borrowing costs, affect consumer spending, and investment behavior. Financial analysts assess the impact of inflation and interest rates on an economy’s overall competitiveness and economic growth potential.
Government Debt and Fiscal Policy: Analyzing a country’s government debt levels and fiscal policy is crucial in understanding its financial sustainability. A high level of government debt may lead to increased borrowing costs, reduced investor confidence, and potential risks to economic stability. Evaluating fiscal policies helps determine whether a country is managing its finances effectively and implementing sustainable economic growth strategies.
Stock Market Performance: The stock market reflects investor sentiment and provides valuable insights into a country’s economic outlook. Analysts evaluate key stock market indices, such as the country’s primary exchange, sector-specific indices, and market capitalization trends. Monitoring stock market performance allows for an understanding of investor confidence, economic growth expectations, and potential risks to the financial system.
Banking Sector and Financial Institutions: A robust banking sector is essential for economic stability. Financial analysts assess the health of the banking system by evaluating indicators such as non-performing loans, capital adequacy ratios, and the overall stability and soundness of financial institutions. Understanding the well-being of financial institutions helps gauge the potential risks to the overall economy, including credit availability, liquidity, and financial contagion.
Regulatory Environment and Governance: The regulatory environment and governance play a critical role in attracting investment and fostering economic growth. Financial analysts assess the effectiveness of regulatory frameworks, transparency in financial transactions, and the overall credibility and efficiency of institutions responsible for enforcing regulations. Evaluating the regulatory environment aids in understanding potential risks and opportunities for sustainable economic development.

SIGNIFICANCE OF FINANCIAL ANALYSIS IN A COUNTRY

Financial analysis plays a vital role across various sectors, serving the following purposes:

Evaluating Financial Performance: By conducting a comprehensive financial analysis, companies can assess their performance, profitability, and financial stability. This, in turn, helps in identifying areas for improvement, developing strategic plans, and making sound financial decisions.
Assessing Investment Viability: Investors rely on financial analysis to evaluate the profitability and risks associated with potential investments. Through detailed scrutiny of financial data, investors can determine the financial health and growth prospects of a company, aiding in making informed investment decisions.
Facilitating Lending Decisions: Financial institutions utilize financial analysis to assess the creditworthiness of loan applicants. By analyzing financial statements, evaluating ratios, and assessing the risk profile, lenders can ascertain the borrower’s ability to repay loans and make sound lending decisions.
Supporting Strategic Decision-Making: Financial analysis aids in strategic decision-making, such as expansion, diversification, or mergers and acquisitions. Understanding a company’s financial position and performance provides a foundation for evaluating the feasibility and potential outcomes of such decisions.

CONCLUSION

Conducting a comprehensive financial analysis provides valuable insights into the economic landscape of a country. By evaluating indicators such as GDP, trade patterns, inflation rates, government debt, stock market performance, banking sector health, and regulatory environment, financial analysts can gauge the overall financial health, identify potential risks, and recommend strategies for sustainable economic growth. Accurate and timely financial analysis acts as a compass, guiding policymakers, investors, and businesses to make informed decisions and contribute to the overall prosperity of the nation.