In recent years, Africa has seen a rise of Fintech ecosystem. Fintech Startups are creating groundbreaking innovative solutions that are closing the wide gap of financial inclusion. However, so many will ask if this rise is a fad or is there more to look out for in the African fintech space in the coming years?
The fact remains that FINTECH is the FUTURE! “Fintech in Africa will continue to expand thanks to growing investments,” comments John Mitchell, CEO of payment software provider Episode Six. “New technology will leverage mobile services and will allow for financial services to become more readily available across the continent.” Unlike other parts of the world where fintech has disrupted well-established banking systems, the cash economy still largely dominates in sub-Saharan Africa. More than 80% of the continent’s population is either underbanked or has no access to banking services. African startups are essentially building from scratch, filling countless gaps in the financial system and providing new means of financial inclusion.
“We are building a new bank entirely within a virtually ignored space. The middle class in Africa haven’t been effectively banked to date and we look to change this dynamic on a permanent basis,” says Tim Nuy, CEO of MyBucks, a Luxembourg-based fintech operating in 12 African countries.
Nothing can stop the growth of African fintech—or so it appears. Investment in African startups quadrupled from 2017 to 2018, totaling $725 million across more than 50 deals. Fintech companies accounted for 93 of those deals, including half of the top 10 deals, and 40% of the total funding generated last year.
Indeed, the future of Fintech in Africa is very bright!
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