The National Information Technology Development Agency, NITDA, has stressed the need to encourage Financial Technology, FinTech, start-ups even as it encourage banks to grant loans to such Small and Medium Enterprises, SMEs.
Director General of NITDA Kashifu Inuwa who disclosed this in a webinar organised by FinTech explained the importance of lending to start-ups, this according to him would help promote inclusiveness in the country.
He noted that traditional banks lending process has long been a barrier to assessing finance for SMEs in Nigeria, describing this development as having negative impact on the operations of these SMEs.
He however advised banks to come up with innovative ideas to assist vulnerable SMEs as the world’s economy faces a down turn in during the coronavirus pandemic era.
He said, “The COVID-19 pandemic has disproportionately impacted SMEs around the world, Nigeria inclusive. Traditional bank lending process has long been a barrier to accessing finance for SMEs in Nigeria.”
FinTech is the technology and innovation that aims to compete with traditional financial methods in the delivery of financial services. It is an emerging industry that uses technology to improve activities in finance.
The use of smartphone for mobile banking, investing, borrowing services, and cryptocurrency are examples of technologies aiming to make financial services more accessible to the general public.
Financial technology companies consist of both startups and established financial institutions and technology companies trying to replace or enhance the usage of financial services provided by existing financial companies.