The Role of Fintech in Deepening the Digital Economy

Fintech has been growing for the past decades and with the stabilization of the digital economy, one will want to know how the two help shape the economy. 

Speaking extensively on this issue, Musty Mustafa, the chief technology officer/Co-founder of Kuda Technologies Limited has praised the roles Fintech plays in deepening the digital economy for Small and Medium Enterprises (SMEs) to enable them to operate in strategic non-oil contributions to national socio-economic growth.

He also applauded the federal government's digital economy policy as the right step for growing startups in the Nigerian economy. He also stated that the nation's GDP will be impacted by cashless payment systems with fintechs assisting in pushing the policy.

“The key thing that we cannot shy away from is the impact of the cashless policy on the overall economy stating that If we can enhance it, we can harness the positives that it brings to the table for the Nigerian economy. I think fintech has a crucial role to play in that area,” he said.

Musty Mustafa further added that with Digital platforms and e-payment systems, Nigeria's financial ecosystem is becoming fast and reliable in funding businesses. He also thanked millions of Nigerians who prioritize the method of payment and have continued to give good reviews.  

He also noted that this has changed the climate on how Nigerians run transactions of which thousands of persons now run PoS which is now a source of wealth creation.

His statement partly reads: “What I see happening to businesses and more innovative solutions are evolving. Small businesses can now collect payments effectively in the easiest way and in a very cheap, affordable manner.

“Also, consumers can make payments with ease and also in a cheaper and affordable manner because these two things are very important – accessibility and affordability. If we can achieve these things in our payments industry, I think they will have positive ripple effects on the economy as a whole.”

Musty Mustafa, the CTO of Kuda also acknowledged that Nigeria's fintech industry has grown significantly in the past years thereby giving room to many startups to begin operation in the country. These startups have grown so big that they now run international transactions which has improved the nation’s traditional banking and financial ecosystem.

He also said that the Federal Government of Nigeria needs to put laws that will foster the growth of the fintech industry. In the same vein, he pleaded for robust collaboration between fintech and traditional banks, a strong credit system, financial literacy, and a strengthening of the cybersecurity space.

“There are three key things we expect to see in terms of policy change and intentionality from the government and to foster growth that we are seeing in this sector,” he said.

Mustafa also said that Kuda is committed to its goal of making financial services easy, affordable, and accessible to Nigerians. He also said that Kuda supports consumers, retailers, and businesses thereby providing digital solutions that give them convenience and affordability to attain their specific goals.