Why ‘FinTech’ could be crucial to the growth of African economies

Friday, October 23, 2015

Mobile payments have revolutionized the financial industry in Sub-Saharan Africa, where more than two thirds of people have a cellphone, but only around one-third have bank accounts. Cash is still king in the region, and the financial architecture of bank branches, payment cards and transfer services that are ubiquitous in the West are lacking.

Yet, people still need to buy, sell and get paid, while the large remittance market means moving money internationally is a huge business.

Stand-out success stories, such as M-Pesa — the Kenyan money transfer system now used across Africa — have changed the way that consumers, banks and investors see the growth of banking and finance on the continent. Now an increasing number of homegrown companies are trying to build on the opportunities that this mobile revolution has created.

FinTech Africa, which connects start-ups with investors, is holding a conference this week in Cape Town, for which it has longlisted a number of companies which it believes are particularly innovative.

Here are, among them, 5 that might contribute to changing the financial landscape in Africa.


Source: CNN (link opens in a new window)

financial inclusion, mobile finance