Last updated on June 9th, 2019 at 08:01 pm
Fintech technology (fintech) is penetrating African continent because that’s the future of business and finance globally.
As financial products and services grow, reaching users and prospective users beyond borders, the need for more innovative ideas has culminated into bringing technlogy into finance.
In this post, we’re going to look at the effort of the continent on fintech and how it’s impacting businesses, SMEs and large scaled enterprises.
Already, Kenya is exploring cross-border mobile payments, which has extended to six Ethiopian banks.
That isn’t just happening in Kenya, Nigeria, South Africa, Ghana and others are seriously collaborating in exploring fintech to push for ease of doing business and developing their economies.
In Nigeria, there are already more than 15 online lending platforms, using GPS technology as one of the criteria for granting loans.
That in itself has proven that the country is embracing technology as one of the means of business financing, conventional financial institutions may have to upgrade to this kind of digital lending if they are to remain relevant in the Nigerian financial space.
There is already a community of entrepreneurs, bankers, investors and tech experts called fintech Nigeria, where like minds network.
Apart from paylater.ng and other online digital lending fintech platforms, there is now open banking initiative.
How does Nigerian open banking work?
Launched in April, 2018, the Open Banking Nigeria initiative is the brainchild of a group of fintech experts and researchers on how to improve businesses and fincial services in Nigeria.
The initiative is powered by the Open Technology Foundation, a not-for-profit, group in partnership with eMaginations, Flutterwave, Teamapt, 2i Lab, Kinexus, Wallet and Paystack.
The Open Banking Nigeria initiative is aimed at enhancing and improving banking experience through technology.
Alat by wema bank, has changed the perspective of many Nigerians about the “old” system of its operation.
Just like South Africa and Nigeria, there are lots of fintech startups that are already doing fine in the country’s financial space.
Some of them include:
- Express Pay
- Invest Mobile
DigiTeller: As the name sounds, this fintech platform makes banking transaction easy using chat services. Account owner simply initiate a chat with his bank to carry out financial transaction.
The good part of DigiTeller is that the conversations via its app is encrypted.
Express Pay: Its technology incorporates various payment options, making it easy for users to instantly fund any bank account in Ghana.
One of them that’s also worth mentioning is BTCGhana.
BTCGhana: Going by the penetration of cryptocurrency, particularly bitcoin, into the World financial space, a Ghanaian fintech firm came up with BTCGhana.
This platform makes it easy to receive funds in bitcoin directly into mobile money account which is then converted into Cedis.
Fintech South Africa
When it comes to technology, South Africa has always been in the forefront, and it has been pushing for aggressive fintech innovation.
As part of the country’s efforts in fintech, its apex bank, South African Reserve Bank (SARB) constituted a three-man fintech unit in January, 2018.
They were saddled with the responsibility of monitoring the impact of new technology developments on the traditional banking sector.
“Given the rapid developments in financial technology it is evident that we are potentially facing one of the most severe innovation and technology-driven disruptions to products and services, particularly in the financial sector space,” SARB deputy governor Francois Groepe was quoted as saying by the Fintech Switzerland
There are other fintech projects going on in the country. One of such is the October 3 and October 4 2018 FinTech Africa Conference, holding at Finance Indaba Africa at the Sandton Convention Centre.
Fintech in Africa is growing at a pace that is encouraging, making the continent a good market for fintech startups.
One day, products will tell potential buyers how much they are sold. Technology can make that possible!