NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Africa is fertile ground for new fintech services which are leveraging the power of communities and social media to make financial services more relevant, while using data to deliver more meaningful financial services on an ongoing basis.

Fintech and economic growth

This mushrooming industry can be directly linked to innovations that meet the needs of historically under-serviced market – the unbanked. Fintech itself has become a facilitator of economic growth in Africa. It is lowering the barriers to entry for consumers by playing a development role and helping to reduce financial exclusion. And financial inclusion combined with a strong financial sector is the backbone of any thriving economy.

While infrastructure development, internet penetration and access to finance remain real barriers to economic opportunities in many parts of Africa, the continent has overall experienced strong economic growth and made major inroads into poverty. An improvement in the quality of economic governance has also played a role. The costs of starting a business have fallen, as have the delays in starting a business.