By Rarzack Olaegbe
Fourteen years. Arsenal Football Club has not played in the UEFA Champions League for 14 years. The club has qualified for the quarterfinal stage this year. It hopes to beat all opposition to win the coveted Champions League trophy. Winning the Champions League will increase its commercial value, its reputation, its squad strength, and brand name.
A Champions League title is the highest achievement in European club football. Besides winning the Champions League, the winner qualifies for the UEFA Super Cup. The winner will face the Europa League champions in a one-off game. It will be the UEFA representative in the following FIFA Club World Cup.
On the one hand
Fintech firms want something like this. They are not satisfied with playing on peripherals. They have up their game. The Fintech firms have to do that. Otherwise, it is game over. Let us rewind. The Fintech firms came with the mindset to disrupt the financial services space. Press the button. Offer digital service. Personalise it. Deliver it fast. But traditional banks struggled to match this approach.
Nevertheless, traditional banks have some advantages: Regulatory support. Stability. Existing client base. Traditional capital sources. Broader financial solutions. And more. To become more and rub shoulders with banks, some Fintech firms have acquired microfinance bank (MFB) licenses.
On the other hand
The MFB license offers fintech the advantage to manoeuvre and play in the Fintech Champions League. Who are the winners? Let us see. Piggyvest is licensed by the CBN as a microfinance bank. It has the leeway to play like a bank. To provide customers with savings and investment tools. Ditto VFD and Moniepoint. As icing on its cake, Moniepoint has a Switch and Processor licence.
FairMoney is now a microfinance bank. FairMoney processes over 10,000 loans daily. Carbon got one, too. It can dance like a bank and issue debit cards. Kuda, Eyowo and Sparkle are fully licensed MFBs. These fintech-turned-banks will extend the boundaries of financial inclusion by making it easy for Nigerians to access financial services.
In the long term
It is game on in the Fintech Champions League! Traditional banks do not own the turf anymore. Traditional banks cannot play God anymore. Pre-MFB license period, the traditional banks held the ace. No, not anymore. These fintech start-ups have upped the ante. They are improving the status, value, reputation, and patronage of the MFB.
These Fintech firms are also offering a certain level of assurance to customers: Your money is safe with us. Come. We will treat you with dignity.
In the short term
With the CBN backing the Fintech firms, they and the Gooners can win the Champions League!
