The Impact of Fintech in Promoting A Savings Culture
The proliferation of Financial Technology (Fintech) across the globe has continued to play a significant role in promoting a savings culture amongst many users.
By leveraging innovative technology, to provide access to micro-savings, mobile banking, and digital lending, Fintech has simplified transaction processes which has helped people manage their finances. This has also made the act of savings more engaging for individuals.
Many Fintech apps incorporate savings functionalities with their comprehensive financial services, which provide users with a holistic view of their finances, making budgeting and savings more efficient.
Some go as far as integrating retirement planning tools, encouraging individuals to save for long-term financial stability and retirement readiness.
Also, several Fintech platforms make use of Educational Resources, where they offer financial education and literacy components to enhance users’ understanding of the significance of savings and provide guidance on effective savings strategies.
Notably, the use of behavior economies is prevalent amongst many Fintech where they leverage behavioral economics to encourage savings. Features like visual progress tracking, incentives, and gamification techniques are introduced to make saving more interactive and rewarding.
In Nigeria, Fintech has transformed the savings landscape, by offering accessible user-friendly, and technologically advanced solutions that encourage individuals to save and build financial security.
These Fintechs have popularized mobile wallets in the country, making it convenient for individuals to store and save money on their mobile devices. These innovations have contributed to increased financial resilience and a growing savings culture in the country.
Experts in Nigeria have disclosed that the launch of several Fintech platforms in the country has immensely improved the savings culture amongst Nigerians.
Check Out Some Fintech Platforms Promoting The Culture of Savings in Nigeria
1.) Cowrywise: Cowrywise is a Fintech platform that provides users with tools to save and invest money, including automated savings plans, mutual funds, and fixed-income investments.
Launched in 2017, the platform has become one of the top saving platforms in the country. It boasts a user-friendly interface and interest rate calculator, that provides users with interest rates of up to 10-15%, which vary according to the user’s personal choice, thus giving both high and low-earners the freedom to save at their own pace.
2.) PiggyVest: Piggyvest is a popular savings and investment platform in Nigeria that allows users to save automatically, invest in various options, and earn interest on their savings.
It offers users personalized and adaptable plans with up to 10-15% interest rate on savings and 25% on investments that allow four withdrawal dates. The platform also has a fixed savings feature that enables users to lock money away for a fixed duration without having access to it until maturity.
3.) Renmoney: Renmoney is a fintech company in Nigeria that offers personal and business loans, savings, investment products, and other banking services.
With a Renmoney Fixed Deposit account, users can start with as low as N10,000, and enjoy an attractive interest rate.
The platform offers two savings products that utilize compound interest: RenFlex, which offers up to 10% per annum with no interest penalties on withdrawals, and Fixed Savings, which offers up to 18% on deposits.
4.) Carbon: Carbon is one of Nigeria’s most transparent and secure digital banks. Founded in 2012, it is a multi-dimensional VC-backed company. Although more famous for its zero-collateral loans that reach up to N1 million, it also offers users a 16% interest rate per annum when registered users invest in its Payvest product.
Additionally, its user-friendly app allows users to pay bills, make low-cost, hassle-free transfers, recharge airtime, and a unique free credit report that shows their credit history in all financial institutions.
5.) Kuda Bank: Kuda Bank ranks as one of Nigeria’s most popular leading digital banks, known as the ‘bank of free.’ While primarily a digital bank, Kuda offers savings and budgeting features within its mobile app. Users can create savings goals, set aside money, and monitor their financial progress.
It is free of the obscene fees that conventional banks frequently impose on their consumers. This software makes budgeting, saving, and intelligent spending easier.
6: Fairmoney: FairMoney is a product of Fairmoney Microfinance Bank, and the company is known for its cheap loans, bill payments, and transfers.
The platform has two savings products FairLock and FairSave. FairLock is like a Fixed deposit, while FairSave is a flexible savings option. FairSave offers 10% interest per annum while offering up to 18% per annum. With FairSave, users can get to earn up to 14% interest per annum. This interest is credited to their FairSave wallet daily.
Conclusion
The launch of Fintechs across the globe has no doubt made saving more convenient, engaging, and accessible, thereby promoting a savings culture among individuals of all income levels.
One notable thing is that it has empowered users to take control of their finances, build emergency funds, achieve financial goals, and plan for a more secure future.
