Today i joined a twitter live chat session Organized by Ecobank for its EcobankFintech Challenge, it was primarily centered around Financial technology in Africa, speaking about challenges, regulation, role of government, the state of the ecosystem now and a few others. I have collated my submissions here for your information.
A3. Africa has small and very fragmented #fintech markets with many and diverse regulatory regimes existing on the continent. You can hardly build a business model in Ghana that would work in say Kenya without tweaking one rule here or there. #EcobankFintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A3. There is also the issue of a lack of funding, in 2016 African #fintech attracted an investment of only $31.4 million, just a fraction of global investment in the space, Many ideas exist yet lack financial backing. #EcobankFintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A3. Also until recently regulations haven’t been too sound for the ecosystem, #Fintech s with their customers need sound regulatory regimes that would not handicap innovation and growth and at the same time create a safe and secure regime to drive fin inclusion #EcobankFintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A3. also the sense of mistrust on both banks and #fintech sides that prove challenging when looking to partner. Fintech companies are afraid of losing identity & autonomy within a larger org while banks seem fearful of doing biz w innovators and “disruptors” #EcobankFintech…
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A3. …it is important for both parties to understand the value each brings and determine how a partnership would be mutually beneficial. #EcobankFintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A4. Some are thriving, talk of the MPESA, Mobile Money (Being run by MTN, Vodafone, Airtel etc), yet there is a lot of work to be done #EcobankFintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A4. FinTech presents opportunities that have not existed before. The introduction of mobile money and #fintech solutions has played an important role in… #EcobankFintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
…reducing the number of unbanked people in Kenya, Ghana and Tanzania yet the number of thriving #FinTech businesses across the African Continent remains low. #EcobankFintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A5. Programs like the #EcobankFintech challenge helps with creating the harmony between #FinTech startups and banks. A harmony that should have long existed is made palpable here.
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A5. Also while acting as a source of funding for #fintech startups, programs like this show the openness of banks to fintechs and their readiness for disruptive innovation #EcobankFintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A6. #Fintech would definitely build a lot of confidence in our financial markets and bring access to banking solutions to the door step of the elephant in the room who are mostly ignored by the traditional banks. #EcobankFintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A6. It is refreshing to know that a telco recently allowed its customers to buy its shares via Mobile money. It tells a lot on how #fintech is doing a major part in Financial inclusion #EcobankFintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A6. In some of the largest economies in Africa, banking penetration is only at 36%. The main reason for this is because of the geographic challenges Financial Institutions have in reaching the unbanked population located in rural areas… #EcobankFintech #FinTech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A6. …yet recently mobile money accounts in Ghana for instance had reached over 30m accounts surpassing the total population #EcobankFintech #fintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A6. Millions of Africans remain unbanked, yet now everybody can transact, In many African countries, mobile financial wallets out number bank accounts, however a large portion of the African population still doesn’t use formal financial services #EcobankFintech #FinTech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A6. Although over 50% have no access to branches, 80% have access to a phone, so mobile offerings are absolutely key in this market, though consumers are running faster than banks and fintechs are #EcobankFintech #FinTech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A7. It is a yes and no…
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A7. Some of #Fintech startups are operating in a space not yet regulated by governments through their central banks. As a result many institutions in this space are finding their way around regulation#EcobankFintech #Fintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A7. A typical example would be the recent interoperability move by the bank of Ghana through its Ghana Interbank Payments and Settlements Systems GHIPSS office empowering consumers to have the freedom of moving money across the board #EcobankFintech #Fintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A7. Central banks may be doing their best to regulate #Fintech tho sometimes slow compared to the disruptive style of the Bank/Fintech harmony who are also slow compared to the demands of consumers… #EcobankFintech #Fintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A7. …hence regulation is almost always passive and correctional than active and preventive. #EcobankFintech #fintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A8. With Facebook’s chatbot it shouldnβt be herculean to explore the options for allowing consumers to perform banking transaction in their chat rooms and easily send monies to persons they are chatting with, while considering ussd integrations as well. #ecobankfintech #Fintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A8. Either directly or indirectly, new products should focus on targeting customers typically excluded from the formal financial system. #ecobankfintech #Fintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A8. Fintechs need to capitalize on the power of Blockchain, Artificial Intelligence, Cloud Computing etc for innovative technologies to address real needs. #ecobankfintech #Fintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A8. Blockcahin has brought a lot to bear on the face of recording information from identity (KYC), transactions, assets etc. It definitely holds a lot for the #Fintech Space as long as we are ready to explore its possibilities. #ecobankfintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A9. Always ask yourself, how can we make financial services better, cheaper, exciting and inclusive with no boundaries? #ecobankfintech #Fintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A9. I have heard it said before that “In a fast paced world think slowly” slow down your thoughts and notice the tiny, everyday moments, you will find the greatest innovation in those moments of slow & steady, u get the opportunity to digest things better #EcobankFintech #FinTech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A9. Collaboration is a strategy in this quest, as #FinTech moves into content and platform innovation, each player needs what the other has, but has found difficult to emulate #EcobankFintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A9. Africa has one of the most exciting banking industries in the world with a market size expected to grow to over $129B by 2020 with Kenya alone forecasted to reach over $10B by 2020… #EcobankFintech #Fintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A9. …Africaβs #FinTech market is massive. If startups could start working together and develop solutions that will unify different industries, theyβd all benefit. #EcobankFintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A9. Thereβs no way small, fragmented #fintech companies with low funding can disrupt the industry in Africa. they need to work together. #ecobankfintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
A9. Research, Research, Research. Before developing a solution, find out what your market needs. The only way to develop a true workable solution is to know what the problem is. Many #fintech startups develop solutions without an idea of what their market needs #EcobankFintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
Others
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Very Much So. While #Fintech startups were busy building apps to sit on high end smart phones, Telcos stepped in with the basics USSD and targeted the elephant in the room who are mostly left behind. #EcobankFintech
β Koku ο£Ώ π¬π (@Fkoku) August 23, 2018
