Money Lessons

FinTech aims to enhance the provision and usage of financial services. Fintech has aided in services including money transfers, at-home bank deposits, online credit applications, and software-assisted investment management. The notable examples include Mobile money transfers, cryptocurrency and stock trading apps etc.

Mobile Money Transfers.

The steps that Safaricom took years ago mark them as the gold standard company of our time. Opting into the unchartered territory of mobile money transfer in 2007 by launching M-PESA marked their presence. 15 years later they have over 52 million registered users on M-PESA. However that number might just stay there or even reduce because people are sorting to online transactions now. Mobile money transfers is the big thing in the global financial market. Data even estimates that around $1 trillion was transacted across mobile transfer platforms in 2019. The reasons for this are platforms such as AliPay and PayPal. The growth of online transactions has been aided by the rise of freelance jobs like Academic Writing. Finance managers are adapting to these changes. Businesses now accept transactions done online.

Cryptocurrency and Block chain.

Cryptocurrency is a form of digital cash where a transaction can be made anonymously. The transactions are more secure and transparent. By mid this year it was estimated that over 4 million Kenyans have some form of cryptocurrency. Kenya, consequently has the highest figure in the whole of Africa for cryptocurrency holding block chain related transactions . CBK governor Patrick Njoroge has said in the past that they are under pressure to use crypto as the reserve currency. The major issue however is crypto cannot be easily regulated. According to the KenyanWallstreet the central Bank is contemplating a legal framework to incorporate crypto in some way.  Despite all the drama, managers at organizations such as Nuria Store in Kenya are now accepting payments in form of Bitcoin.

Stock Trading Apps.

Buying and selling stocks on markets in the world has been easily facilitated by stock trading apps like Hisa. Traditional brokers are being rendered irrelevant by these apps. The expansion of the Nairobi Securities Exchange can be attributed to these apps. The apps are even more appealing to consumers as they can buy stocks even from the New York Stock Exchange.

Artificial Intelligence in portfolio management.

AI is taking over from traditional finance managers in choosing the optimum portfolio for investment companies. The AI are built by experts in computer and finance to help in deciding on what investments to take part in. Artificial intelligence has been used successfully by J.P. Morgan and Chase enterprises to deter fraud and generate other types of information utility for customers and prospects.

Budgeting Software.

The advancement of FinTech has allowed companies and individuals to outsource the budgeting functions to apps like QuickBooks.In fact nowadays it is most of the time a job requirement to be conversant with such accounting software for finance managers. The development of this sector has been crucial to reduce expenses on human resources which is not encouraging for finance managers.

What the future holds.

Companies and finance managers that have not reacted to new developments are being driven out of the market. However, some businesses have modified their strategies to incorporate the new methodologies. For instance, the investment bank Goldman Sachs just expanded its activities to the United Kingdom after launching the credit administration platform Marcus in 2016.

With time the changes shall be seen taking place in Africa and specifically in Kenya.

By Ansias

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