Fintech opportunities in Africa

1. EMERGING OPPORTUNITIES IN
THE FINTECH SPACE
It's not FinTech that moves into the banking business; it's the other way around

2. Origin of Fintech and What Fintech Is
(and Isn't)
Origin of Fintech
Fintech has its roots in the
intersection of finance and
technology, evolving to
enhance traditional
financial services.
What Fintech Is
Fintech encompasses a
wide range of financial
services, including
banking, insurance,
investment, and more,
leveraging technology.
What Fintech Isn't
Fintech is not limited to
just banking and financial
technology. It extends to
non-banking financial
institutions like insurance,
capital markets, and
lending.
Examples
Stipe: it offers software tools that enable businesses to accept payments, manage subscriptions,
and conduct e-commerce transactions seamlessly.
Coinbase: It provides a user-friendly interface for trading digital assets and offers additional
services such as cryptocurrency wallets and merchant tools.

3. Nigeria Fintech Map 2023
https://www.linkedin.com/pulse/nigeria-fintech-map-2023-segun-adeyemi-4dr5f/

4. Fintech Problems and Opportunities
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Limited Access to Credit
(Unbanked Population)
High Remittance Fees Slow & Expensive
Traditional Payments
Low Insurance
Penetration
Lack of Investment
Options
Inefficiencies in
Agricultural Supply
Chain

5. Fintech Problems and Opportunities
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Paper-based Trade
Finance Processes
High Cost of Saving &
Inefficient Savings
Options
Limited Access to
Financial Literacy
Fraudulent Transactions
& Identity Theft
Cash-based Payroll
Systems
Limited Access to
Budgeting & Financial
Management Tools

6. Fintech Opportunities
Financial technology, commonly known as fintech, is one of the most
popular areas among software engineering businesses today. Virtually
everyone deals with money and payments every day, and creative minds
can come up with tons of solutions to improve those interactions.
Solutions to people's finance-related needs can come in the form of
software.

7. Trends of fintech areas
The most recent advancements in financial technology are shaped by digital finance trends, often
propelled by emerging technologies such as AI, ML, and blockchain. These trends are responsive to
consumer preferences and shifts in regulations.

8. Buy Now Pay Later
Buy Now, Pay Later (BNPL) stands as a prominent fintech innovation, experiencing rapid growth,
according to Business Insider. This trend allows consumers to defer payments for online or in-store
purchases, and the global BNPL market is predicted to surge from $24 billion in 2020 to $67 billion by
2025.

9. Fintech Super App
The surge of fintech super apps is a significant trend, featuring versatile
applications that offer diverse services to a broad user base. These all-in-
one solutions are disrupting the fintech industry by capitalizing on
innovation opportunities.

10. Digital-only banks or neobanks
Digital-only banks, commonly called neobanks, operate exclusively online and provide various financial
services, including checking accounts, savings accounts, and loans. These banks are renowned for their
convenience, user-friendly interfaces, and competitive fees.
Neobanks offer round-the-clock accessibility through intuitive websites and mobile apps, disrupting the
traditional banking industry.

11. Blockchain Technology
Blockchain, a rising fintech trend, has significant potential. In a Deloitte
survey, 76% foresee digital assets replacing fiat money in 5-10 years.
It offers data protection, verification, identification, and enhanced
traceability. Decentralized finance (DeFi) challenges centralized systems,
reshaping finance from trading to insurance.

12. Regtech
Regulatory compliance poses significant challenges for banks due to the complexity and cost of
numerous regulations. Companies often incur expenses for legal support or face non-compliance fines as
the regulatory landscape expands. This fuels the demand for Regulatory Technology (Regtech), which
offers automated solutions to monitor the correctness and legality of financial operations.
Regtech tasks include client identification, data processing, protection, and financial risk analysis. It
automates extensive regulatory requirements for each business line through the integration of
automation, Big Data, and machine learning (ML).

13. Fintech Opportunities
Microloans, Alternative Credit Scoring,
SME Financing:
Branch (Nigeria),
Tala (Kenya, Tanzania),
Zidisha (Across Africa)
Cross-Border Mobile Money Transfers,
Blockchain-based Remittances
WorldRemit, Wave, MFS Africa (Across Africa)
Mobile Wallets, Digital Payments
Platforms:
Branch (Nigeria), Tala (Kenya, Tanzania), Zidisha
(Across Africa)
Micro-insurance Products, AI-
powered Risk Assessment, Mobile
Claims Processing:
Limo Insurance (Ghana), Bao (Nigeria), Asante
(Kenya)
Fractional Share Purchasing, Robo-
advisory Services, Localized Investment
Products
PiggyVest (Nigeria), Chaka (South Africa),
EasyEquities (South Africa)
Blockchain-based Tracking &
Traceability, Digital Marketplaces for
Farmers
Thrive Agric (Nigeria), Esoko (Kenya), TradeForce
(Ghana)
Digital Trade Finance Platforms, Invoice
Factoring
TradeDepot (Nigeria), Trade Ex Africa (Kenya), Lipa
Later (Kenya) Digital Savings Platforms with
Competitive Interest Rates, Gamified

14. Nigeria has so far been the biggest recipient of fintech funding across Africa, securing nearly half of all
investment raised by fintech startups in the region between 2019 and H1 2023