20°C / 22°C
  • Wed
  • 29°C
  • 15°C
  • Thu
  • 25°C
  • 15°C
  • Fri
  • 26°C
  • 14°C
  • Sat
  • 27°C
  • 16°C
  • Sun
  • 25°C
  • 14°C
  • Mon
  • 29°C
  • 14°C
  • Wed
  • 21°C
  • 14°C
  • Thu
  • 21°C
  • 14°C
  • Fri
  • 22°C
  • 14°C
  • Sat
  • 20°C
  • 14°C
  • Sun
  • 20°C
  • 14°C
  • Mon
  • 22°C
  • 13°C
  • Wed
  • 30°C
  • 17°C
  • Thu
  • 27°C
  • 16°C
  • Fri
  • 26°C
  • 16°C
  • Sat
  • 28°C
  • 17°C
  • Sun
  • 28°C
  • 16°C
  • Mon
  • 30°C
  • 16°C
  • Wed
  • 32°C
  • 16°C
  • Thu
  • 28°C
  • 15°C
  • Fri
  • 27°C
  • 14°C
  • Sat
  • 29°C
  • 17°C
  • Sun
  • 28°C
  • 16°C
  • Mon
  • 30°C
  • 15°C
  • Wed
  • 22°C
  • 18°C
  • Thu
  • 24°C
  • 18°C
  • Fri
  • 24°C
  • 19°C
  • Sat
  • 27°C
  • 20°C
  • Sun
  • 26°C
  • 19°C
  • Mon
  • 23°C
  • 17°C
  • Wed
  • 19°C
  • 13°C
  • Thu
  • 20°C
  • 12°C
  • Fri
  • 20°C
  • 15°C
  • Sat
  • 20°C
  • 15°C
  • Sun
  • 21°C
  • 16°C
  • Mon
  • 21°C
  • 14°C
  • Wed
  • 26°C
  • 8°C
  • Thu
  • 23°C
  • 10°C
  • Fri
  • 26°C
  • 10°C
  • Sat
  • 23°C
  • 12°C
  • Sun
  • 20°C
  • 10°C
  • Mon
  • 25°C
  • 7°C
  • Wed
  • 21°C
  • 12°C
  • Thu
  • 19°C
  • 12°C
  • Fri
  • 20°C
  • 12°C
  • Sat
  • 20°C
  • 14°C
  • Sun
  • 19°C
  • 13°C
  • Mon
  • 20°C
  • 12°C
  • Wed
  • 30°C
  • 18°C
  • Thu
  • 28°C
  • 17°C
  • Fri
  • 28°C
  • 16°C
  • Sat
  • 30°C
  • 17°C
  • Sun
  • 30°C
  • 16°C
  • Mon
  • 32°C
  • 15°C
  • Wed
  • 31°C
  • 14°C
  • Thu
  • 31°C
  • 12°C
  • Fri
  • 34°C
  • 16°C
  • Sat
  • 34°C
  • 15°C
  • Sun
  • 33°C
  • 14°C
  • Mon
  • 31°C
  • 14°C
  • Wed
  • 25°C
  • 17°C
  • Thu
  • 25°C
  • 16°C
  • Fri
  • 26°C
  • 18°C
  • Sat
  • 27°C
  • 18°C
  • Sun
  • 30°C
  • 17°C
  • Mon
  • 22°C
  • 15°C
  • Wed
  • 19°C
  • 11°C
  • Thu
  • 20°C
  • 9°C
  • Fri
  • 22°C
  • 10°C
  • Sat
  • 21°C
  • 12°C
  • Sun
  • 21°C
  • 13°C
  • Mon
  • 21°C
  • 11°C

The rise of Fin Techs

One of the critical challenges which banks and financial institutions across the African continent need to address is that of financial inclusion.

Given the enthusiasm with which most people in Africa have adopted mobile technologies, it’s perhaps no surprise that mobile has become key to the provision of financial services. Picture: Pixabay.com

One of the critical challenges which banks and financial institutions across the African continent need to address is the issue of financial inclusion. In response, a number of Fin Techs have built solutions to address this issue which is requiring traditional banks to respond appropriately or risk losing market share.

In addition to Fin Techs, the continent’s banking and financial services landscape is increasingly being encroached on by mobile telecommunications operators. Safaricom, for example, controls more than 60% of Kenya’s mobile market with around 31 million subscribers.

The company - of which both Vodacom and the Kenyan government hold a 35% stake, with a 5% stake from Vodafone - established the successful M-Pesa mobile money product. Safaricom partnered with Kenyan banks CBA Group and KCB, allowing the banks to lend to customers and take deposits via the M-Pesa platform. It has recently renewed a partnership agreement with Equity Group, Kenya’s second biggest bank by assets, to expand its digital financial businesses and revamp the M-Kesho banking application.

Given the enthusiasm with which most in Africa have adopted mobile technologies, it’s perhaps no surprise that mobile has become key to the provision of financial services.

Mobile technologies have been instrumental in deepening financial inclusion across Africa, says Sola David-Borha, Chief Executive of Standard Bank’s Africa Regions.

Mobile banking today is so ubiquitous, so convenient and so taken for granted, that it’s easy to forget how revolutionary it is. There’s almost no reason these days for someone with a smart phone to enter a branch. That’s an enormous change over less than a decade.

Sola David-Borha, Chief Executive - Standard Bank’s Africa Regions

According to the World Bank, sub-Saharan Africa is a global leader in mobile money innovation, adoption and usage, leading the world in mobile money accounts per capita, mobile money outlets and volume of mobile money transactions. The World Bank says close to 10% of GDP transactions are occurring through mobile money.

In fact, there are more mobile money accounts than traditional accounts in the region, according to the African Development Bank. In countries such as Gabon, Ghana, Kenya, Namibia, Tanzania, Uganda and Zimbabwe, more than 40% of the adult population use mobile money on an active basis.

In South Africa, certain external best practice regulations have a negative impact on innovation, says SA Banking Association MD Cas Coovadia.

SA tried to implement M-Pesa through Nedbank, but because it was subject to international banking regulations, it never succeeded here. Unlike Kenya which took the view that although it brought risk into the industry, they would manage that risk.

Cas Coovadia, MD - SA Banking Association

Click here to read more from the Driving Africa’s Development archive.

Click here to return to the 54 and 1 portal - brought to you by Standard Bank.

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

comments powered by Disqus