The Fintech space more than ever has been doing a lot of upgrading in recent time, some of which has starred controversial questions that suggest the possibility of the startups evolving to become digital banks
Well, even if there is a possibility for any of the fintech startups to go in the direction of ‘digital banking’, then it is most likely not going to be any moment soon. At that, Fintech startups have rather been working on several upgrades that will allow their respective platforms to stand the test of time, especially during the period that the space becoming flooded with new entries.
Also, to remain outstanding in the space, there is a need for platforms to offer new tools that will make operation even seamless, just as in the case of Cowrywise, and PiggyVest who recently added a new related feature on their respective platforms.
Sometimes towards the end of the month of July, Cowrywise added a feature to its platform. Namely ‘Stash’, the feature offers users the opportunity to transfer funds from their traditional account to their Cowrywise account without having to go through the rout of the usual online payment platform. At that, the service will only cost users as little as ₦25 per transaction, a considerable amount which is more than 50 percent lesser than interbank transactions.
While the new development took place about two weeks ago, PiggyVest, also introduced a similar feature a while after. In its own case, it referred to its newly-introduced feature as ‘NUBAN’. And like Stash of Cowrywise, the NUBAN also enables users to fund their wallet from multiple channels which include Internet Banking and Bank transfers.
On the note of rolling out the NUBAN feature, information reaching us also revealed that the new development by PiggyVest was made possible via a partnership with a CBN-certified fintech company known as TeamApt, and at that also needs support from Providus Bank, which is reportedly offering the ‘NUBAN’ tool.
Utmostly, the new feature are designed to allow more integration with the traditional banking system, and apart from making transactions a lot seamless, it will also help some of the startups to camouflage as a digital banking entity, which is the reason for the controversies in the first place.
That been said, do you think it is reasonable for any fintech to transform into a digital banking platform, or rather stick to the ‘Piggy Banking’ medium to avoid ruining there respective businesses? Please share your opinion in the comments below.