Why Are Investors Turning to Africa’s Fintech Sector?
Fintech is transforming the financial sphere across the world, but there’s one continent which is particularly benefiting from Fintech, and that continent is Africa. With around 66% of the adult population in Africa referred to as the unbanked, Fintech has the power to drive huge change in the region and serve a continent that has for so long been has had their financial needs neglected.
Innovative Fintech start-ups are rising rapidly in Africa. Businesses such as M-Pesa, Jumo and Kuda are prime examples of FinTechs who are serving those excluded from accessing financing or were underserved by traditional banking companies.
The Rise of Fintech in Africa
The combination of rising mobile phone usage with the bank’s reluctance to provide people with access to its services, meant that Fintech was always going to be a hit in Africa.
Many countries in Africa are now embracing Fintech, but it is in countries such as Kenya, Nigeria and South Africa where Fintech has been instrumental. For example, in Kenya, M-Pesa has revolutionised how people manage their finances. Users can now pay bills, transfer money, and even receive salaries, all without having a bank account.