The document discusses how financial technology (Fintech) has benefited various sectors like healthcare, agriculture, transportation, e-commerce, education, and retail in East African countries. It highlights how Kenya is recognized as the home of mobile money in East Africa, with many companies digitizing operations to enable digital payments. Fintech has grown significantly in Kenya and Rwanda, contributing to increased financial access, while countries like Somalia have opportunities to collaborate more with banks to gain broader market access. The growth and collaboration between banks and Fintech companies in providing digital financial services has boosted financial inclusion across East Africa.

1. The State of
Due to the COVID-19 pandemic, many people are relying more on financial technology
(Fintech). Many of the East-Africa Nations are already taking advantage of the benefits of
Fintech for its citizens.
Fintech in East-Africa
By: Ali Mohammed
East African countries have numerous financial technology platforms that offer much more than
just cash transfers. The healthcare, agriculture, transportation, e-commerce, education,
and retail sectors have all benefited from the advances in financial technology.
Fintech
Healthcare
Agriculture
Transportation
e-commerce
Education
Retail sectors

2. Kenya is currently recognized as the home of mobile money in
East Africa. Many companies in the country have digitized their
operations, making it possible to send and receive payments digitally.
Kenya and Rwanda have the highest populations of accessing financial services in East
Africa. Tanzania, Somalia, South Sudan, Burundi, and Uganda follow, respectively. In
Somalia, there are several silo financial innovative services that are not popular outside
Somalia. They should collaborate with banks such as SomBank Ltd, Salaam Bank,
etc. to gain access to broader markets along with several other associated benefits
in Somalia and abroad.
Silo Financial Services
SOMALIA
SomBank Send & Receive
Money Globally
Any Where
Any Time
The Central Bank of Somalia has several initiatives, including Automated Transfer
Systems (ATS), National Switch for interoperability of retail payment systems, and
an advanced financial identification platform. That will ease the current KYC obstacles
and payments between Banks, MTO, MMO, and other business services. In Somalia, With
over 155 Mn transactions worth over $2.7 Bn mobile money record a month (2017), Mobile
Money has superseded the use of cash.
In Kenya, digital loan apps and mobile money service providers have recorded the highest
growth in terms of volumes and usage. The number of Kenyans using different types of
financial services has increased significantly between 2018 and 2020, reflecting
Inter-linkages between digital platforms, traditional commercial service providers,
and mobile money.

3. Being at the forefront of the Fintech sector, the value of mobile
money transactions in Kenya is 48% of GDP. Mobile money has
helped reduce poverty and has boosted economic growth in
East Africa. South Sudan and Uganda are expected to record
real GDP growth of 7%.
The provision of Mobile Financial Services in Kenya was
first started by the leading Mobile Network Operator,
Safaricom Ltd, through the provision of money transfer on
the Mpesa. The platform targeted the low-end customers and
is now a valuable tool for Kenyans. Those living in urban areas
can send money to their families living in rural areas, promptly
and at a low cost.
Today, there are more than 23 million mobile money users in Kenya. In 2008,
Vodafone launched Mpesa in Tanzania, and in 2009, MTN launched MTN mobile money
in both Uganda and Rwanda. M-Shwari account launched jointly by Safaricom and the
Commercial Bank of Africa in Kenya offers credit and savings facilities that can be
accessed entirely through Mpesa.
As of today, Safaricom has almost 30 million users in 10 countries. Safety and
efficiency for users have boosted this kind of transaction as it includes an affordable and
safe way to deposit, withdraw, and transfer funds. Furthermore, it allows the timely
transfer of small amounts of funds in times of financial distress. The government supports
the widespread use of the service in Kenya by digitizing payments even for government
services. About 90% of transactions of e-citizen, which is the official government payment
platform, are made using the system. Since its launch, Mpesa has expanded to
incorporate several features, including payment of bills, shopping, credit and savings
services, buying, and airtime transfer.
Compared to other sectors, Fintech has raised significant capital in the last few years.
The number of Fintech in East Africa has recorded a 24% compound annual growth
rate and is seen to contribute over $90 Billion to East Africa's GDP by 2022.

4. Initially, it had appeared as if fintech companies would
replace banks, but there has been a collaboration
between banks and fintech companies. Banks are
also setting up their fintech platforms and
incorporating them into their systems. For
instance, local banks are now allowing virtual
accounts opening, funds transfer, bill payments,
goods purchases, and loans.
Introduction of Umurenge Saccos, and the advent of agency banking, microfinance
institution branches together with modernization of financial services such as
automated teller machines, and mobile money have been the key drivers of financial
inclusion in Rwanda. The extensive adoption of mobile money services by underserved
groups and the full range of mobile money services, such as insurance and loan
products, have enabled regulatory environment for digital financial services, which
boosts financial inclusion.
Banks are now shifting transactions away from banking halls to digital platforms such
as Point of Sales, ATMs, mobile platforms, and the internet, and this increases
access to the population that had been traditionally excluded. The Motherland is on
the right path to digitalization in its financial industry, and several regulatory bodies
are onboard this trend while others are catching up.

5. If you are planning to transfer funds to and from Somalia from anywhere
around the world, T-Plus of SomBank provides the best way to transfer
funds. As well as purchase goods and services inside Somalia.
Benefits of using T-Plus
It provides a fast and reliable service. This means that there are no
delays, and all transactions are instant.
Your funds are securely transferred.
The App is user friendly and easy to use.