What Does the Future Hold in This Thriving Ecosystem?
For five years now, FinTech has been growing by leaps and bounds; such is the analysis and study made by Mastercard in 2021, which was published in the form of a white paper at the Mobile World Congress (MWC) specifying that FinTech startups in Africa grew by 81% in 2021. The white paper, entitled "The Future of Fintech" with its fixation on rapid growth, attracts smart capital. Unsurprisingly, the study cites South Africa, Nigeria and Kenya as the continent's FinTech hubs. This makes sense, given that most of Africa's most successful startups, as well as investments, originate from there.
By growing from 311 to 564 FinTech startups in Africa, Sub-Saharan Africa has written its name into the annals of this still new sector on the continent, with growth of almost 894% per year and $1.56 billion in fundraising. So, can we say that he has had a triggering effect on this growth in sub-Saharan Africa?
Between the challenges of digitizing services and financial inclusion, the white paper attributes this boom in financial technology innovation to the need to resolve multiple structural problems. The continent's low level of bank penetration and the massive adoption of mobile money over the past decade or so have in fact created an environment conducive to fintech solutions.
Africans have succeeded in creating and developing an ecosystem around this, as can be seen from Flutterwave, Chipper Cash, Kuda Bank, Jumo, Intouch and Wave, some of the best-known and most successful companies in African FinTech. The Fintech boom is well and truly underway in Africa.
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