Africa - The Fin-tech Frontier
Why Africa will Lead the Worlds FinTech Revolution
Africa, the dark continent or the brightest shining star in the payments and banking tech universe?
The continent of Africa contains about 1.2 billion people, 16% of earth’s population, and three times the US population. Currently, 800 million people are without access to basic financial services such as a bank account or the ability to send and receive money or make electronic payments such as bank transfers or credit/debit card transactions. Business enterprise cannot exist in a financial desert. This has been an impediment to economic growth that would otherwise improve the political instability and human suffering that is epidemic across the continent.
The continent of Africa now also contains over 400 million mobile phones users. With today’s technology, broadband internet and mobile communication networks are being deployed across Africa rapidly and at low cost relative to the communications infrastructures of earlier advanced parts of the world.
The remittance market to Africa from other parts of the world is about $70 billion annually and is the most expensive market to send money to from the US.
Emerging payment systems such as M-Pesa in Kenya, population about 40 million, are processing over $15 billion annually, 1/3 the GDP of Kenya, after just 3 years of operation. The system functions similar to MoneyGram in the US.
Nigeria, population about 180 million, recently passed law that paves the way for banks to act as money transmitters. This opens the opportunity for domestic and international electronic funds transfers, and a wallet solution to enable the un-banked to transfer funds electronically. The ATM networks in Nigeria are adopting card-less technology, the ATMs interact with mobile phones instead of cards.
My conclusion is that banks in Africa will rapidly adopt the world’s most advanced financial services technology platforms and take advantage of what is clearly shaping up to be the largest growth opportunity in the financial services industry. Electronic banking, billing and payment platforms that are software only, don’t require plastic or paper or special hardware so that they can be adopted by download or accessed online. More secure, lower cost and faster payment systems that will eventually displace traditional payment systems in the US and globally.
MyECheck provides customized electronic banking and payment platforms for banks. Our solutions enable real time funds transfers on mobile devices via email, text, Facebook and other social medial apps, MS Outlook app, ATMs, and mobile app.
Originally published by Ed Starrs, Founder & CEO, MyECheck, Inc. at https://www.linkedin.com/pulse/africa-fin-tech-frontier-ed-starrs