Fintech apps are the future of banking - and GenZers in Africa are more excited about them than anyone else.
5 reasons why African GenZs care so much about Fintech
GenZs largely lead Africas booming creator economy. These African creators—freelance writers, designers, videographers, Tiktok content creators, bloggers, and podcasters make money globally and rely on fintech apps like Chipper Cash, Flutterwave, and Wise to make transactions around the world.
Here are five (5) reasons why African GenZs care so much about Fintech
Simple Interface and UX
Fintech apps are accessible and easy to use, and they are available on smartphone browsers, tablets, and laptops. The app’s mobile interface is simple and user-friendly, making it easy for anyone in Africa with an internet connection to use these apps.
Rewards and Use Cases
Modern Fintech apps let you do more than send or save money and have more advanced features. Apps like Carbon push instant notifications when you send money and when the recipient receives the funds.
Some Fintechs have more attractive offerings, benefits, and use cases.
For example, some have a referral system and reward you for participating in surveys or sharing the app with friends.
24 years old Ndidiamaka uses Carbon to avoid stories "it is Carbon for me because it lets me know when the money has entered the receiver’s account. I have receipts, so no stories".
With fintech apps, you can set money goals, keep a tab on your expenses, track your progress and automate your savings.
For 25-year-old Femi, the fintech company Cowrywise helps him focus on his savings goals. “I love Cowrywise because they forced me to learn discipline. Once the funds are locked, nothing goes out till the maturity date. I resent it when needing cash, but that money hits differently when it matures''.
Before Trove, RiseVest, Bamboo, and the likes, it was nearly impossible to invest or trade global stocks from Africa. But now, Africans can become shareholders of international companies right from Africa.
In May 2022, banks in Nigeria, including United Bank of Africa, Stanbic IBTC, and Zenith Bank, reduced the monthly dollar spending limit to $20. At the same time, some banks like Wema suspended the use of naira-denominated debit cards for international transactions. This was a huge setback for creatives and freelancers.
"I spend an average of $200 a month on tech stack, but the bank limit meant I couldn't pay my subscriptions and couldn't work". (Godwin 23 years).
Fintech companies like Chipper Cash and Flutterwave help to sort this so Gen Zs can make foreign purchases and receive payments around the globe.
GenZ is a generation that has grown up with technology at its fingertips. They've never known a world without smartphones, social media, and the internet. And they've never had to work hard to find information or learn new skills — everything they need is always just a click away.
It makes sense for this generation to rely on fintech apps to complete daily transactions and make long-term plans.
About BI Contributor
Goldie Iyamu is a passionate Pan-African entrepreneur and marketing campaign manager based in Lagos, Nigeria. He believes there's so much potential for Tech in Africa, and his big dream is to open up Africa’s limitless possibilities.
The views expressed are those of a contributor and do not necessarily reflect the views of Business Insider Africa.
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