Start-ups on the African continent, with a focus on financial technology, (fintech), have stolen the show, on the continent’s start-up space.
African Fintech start-ups, in the last three years, have secured more funding and investment, than any other sector. There appear to be obvious reasons for this.
Through the creation, of the tech-based solutions and products, in their abundance, such as lending platforms, mobile money and making an online payment, the fintech start-ups have played a major role in facilitating financial transactions, without resorting to making trips to banking halls.
Fintech start-ups are bridging the very huge gulf that exists, in the local financial industry.
With, not less than 60% of the continent’s adult population remaining unbanked, the fintech ecosystem, has a big opportunity to expand, beyond its present state, while driving the financial inclusion narrative, beyond the present banking structure.
In Kenya, for instance, the M-Pesa platform allows its users, to withdraw, deposit and transfer funds, conveniently, through their mobile devices.
M-Pesa, has gone ahead, to be at the forefront of mobile money platforms, on the continent. Millions of people that have limited bank access, or, none at all, now have access, to financial services, through their mobile phones.
As of December 2018, data from the Communications Authority of Kenya indicates that, the country had, not less than 30 million active mobile money transfer service users, with M-Pesa, leading the market, with 25.57 million users.
In Ghana, MTN had launched a mobile-money-based IPO, in 2018 and going ahead, to raise more than $200 million.
Coming down to Nigeria, another West African country, in early 2019, Flutterwave, got a partnership deal, with Alibaba, a global e-commerce platform, to allow merchants on the African continent, secure payments from Alipay.
What more can be said, of African fintech start-ups, that have come up with initiatives that are centered, on leveraging mobile technology, to solve the financial inclusion challenge?
With Africa’s teeming unbanked population, coupled with the increased rate of mobile phone usage, the role of fintech organizations, in providing financial services, cannot be overemphasised.
With this potential, Angel Investors and Venture Capitalists, cannot, but keep an eye, on the African fintech ecosystem.
Featured Image: techbullion
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