FINTECH

TOP ONLINE BANKING MYTHS

Published

1 year ago

Internet Banking Online Payment Technology Concept

TOP ONLINE BANKING MYTHS

What are online banking myths? Online banking myths are people’s false ideas and perceptions about online and digital banking. Not only do they have these thoughts, but they also share them with others, and it becomes widespread.

Have you noticed that primarily the younger generation now patronizes digital banks? Typically, shouldn’t it be the younger ones that should be more skeptical? So, why do the older generation stick to traditional banking while the younger ones are open to digital banking?

These are questions that many people are trying to answer. But, you cannot get these answers from the comfort of your room. So, since you are wondering why the older ones are not open to the idea of online banking, you need to meet them and ask these questions.

Internet Banking Online Payment Technology Concept

We’ve seen that older people have a wrong perception of digital banks. So, we decided to reach out and get some of these myths and give a clearer perspective. The goal is for people, especially the older ones, to see things as they are instead of relying on misinformation.

What people think about online banking:

They are stressful

What could be more stressful than going to a physical location before you can carry out transactions? We often hear older people say that digital banking is stressful and leaves us confused. But upon further discussions with them, we realized that their assumptions stem from online banking being technology-based.

Now, allow us to clarify that you do not have to be a tech guru before you would know how to use a digital bank. All you need is an open mindset, and you’ll get the hack of it in no time.

Interestingly, most digital banks have factored that people might find it hard to navigate their applications. So with the user in mind, they present an easy-to-use interface. Even if we cannot vouch for other digital banks, we can assure you that Mintyn Digital Bank has one of the most simplified user interfaces.

So, you can send money, receive money, save, buy airtime, pay bills, and carry out other banking transactions from the comfort of your home.

If you are in doubt, a trial will convince you. Online banking isn’t stressful in any way. Thus, do not let anyone stop you from experiencing this good and easy life.

They don’t have a physical location, so you can’t resolve complaints.

If you have ever interacted with an older person about online banking, you will hear this as their first complaint. Most of them stick to traditional banking because there is an identifiable physical location, and most banks have physical locations nearby. But when it comes to digital banks, they mostly have one physical place that serves as the headquarters.

So, if the office is in Lagos, those in Akwa Ibom can’t easily access it. Therefore, people begin to wonder what happens if and when they have complaints.

However, that shouldn’t be an issue as digital bands have accessible and effective customer complaint channels. For example, if you go on the website of most digital banks, you are sure to see a chat box where you can make inquiries and resolve complaints.

In addition, there are also customer care numbers, and these people are almost always available. Yes, most digital banks have customer care agents handy 24/7. Therefore, you can always speak to someone if you have complaints.

The fact that there is no accessible physical location shouldn’t stop you from migrating to online banking, as that doesn’t hinder efficiency. After all, even your traditional banks have integrated online banking into their system.

They can run away with your money.

It is always laughable when people give this reason for not using digital banks. They say that it is easy for digital banks to run away with your money. It has to be one of the top online banking myths.

We are not saying that this can’t occur. However, the same probability that a digital bank has of running away with your money is the same probability that occurs with a traditional bank also folding up and making you lose money.

We have seen instances of many traditional banks that have shut down operations. Yet, this has not stopped people from transacting with traditional banks. Thus, the same grace one would extend to traditional banks should also be extended to digital banks.

Banking, in general, is a risk, and we are sure everyone is aware of it. However, life is about growth, and we must keep evolving. Therefore, we wouldn’t return to the old ways of saving money at home. But, even if you do that, there is still a risk of the money getting lost.

So, the chances of losing your money to a bank should be a general fear and not peculiar to only digital banks.

Identity theft

Another top online banking myth we hear from people is that transacting with a digital bank leaves you prey to identity theft. They believe that because you put your details online, anyone can access them, making you lose your money.

Again, allow us to repeat that everything in life entails taking risks. The fact that you are putting your details online doesn’t automatically mean that you will be hacked. Yes, digital banks are aware of this risk factor. However, they ensure that systems are in place to protect their customers as they would not want to compromise their systems or want anything to hurt them. You would often find cybersecurity and risk experts working with these digital banks, ensuring to protect the customers.

Did you know that you are also exposed to identity theft when using traditional banks? Yes, it is another factor that isn’t only peculiar to digital banks. In the case of traditional banks, the bankers have your details, leaving you more exposed.

To ensure that identity theft does not occur, you must use a reliable bank, be it digital or traditional. We recommend Mintyn Digital Bank as one of the best banks to avoid such an issue.

It’s only for the younger generation.

We’ve also seen the older generation shy away from using digital banks because they believe it is only for the younger generation. Of course, this is a myth, as anyone can use online banking. We have seen older people who are ambassadors of online banking. It shows that anyone can use a digital bank.

Yes, we know that the younger generation is the digital generation. But, there is nothing overly complicated about online banking. We had earlier mentioned that most digital banks have accessible interfaces. Therefore, you do not need to be tech-inclined before you can use them.

As long as you have an internet-enabled device, you can carry out digital and online banking. This system’s goal is to remove the stress people often associate with banking. You do not need to feel tired when carrying out any transaction.

Online and digital banking is for everyone, regardless of generation, race, or gender. However, if you are looking for an easy and stress-free banking process, it would be best to opt for online banking.

If you believe online banking is for only the younger generation, wouldn’t you also want to feel amongst them?

What are people asking about online and digital banking?

Below are some of the commonest questions gotten about online and digital banking:

What is the concept of digital banking?

The concept of digital banking entails the digitalization of all banking transactions. The idea is that you can now bank from your home or anywhere you find yourself. The goal is to make the banking process easier, fasting, and better.

Who invented digital banking?

Interestingly, digital banking has been around since 1998. ICCI Bank first introduced it.

Why is digital banking better than traditional banking?

We are not here to downplay traditional banking. Understandably, people should pick their preferred style of banking. However, one pro digital banking has over traditional banking is its ease. You can now say goodbye to long queues when transacting with digital banks.

The next time you hear any of these myths about online banking, you should laugh, shake your head, and educate people on what online and digital banking entails.

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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.