Fintech, a fast growing Industry in Africa. Sika dives in.
Highlights from statista.com depicts the massive growth and opportunities in the financial technology Industry specifically in Africa and the Middle East. In 2016, the collective transaction value in the Financial Technology market amounted to USD 53,222 million, and transaction value is still expected to show an annual growth rate of 23.12% resulting in the total amount of USD 122,308 million in 2020. The market’s largest segment is Digital Payments with a total transaction value of USD 51,937 million in 2016. The figures below clearly indicate the growth and customer types.
From the year 2006, there has been a gradual uprise of financial technology (fintech) companies dominating the Ghanaian market. Companies like DreamOval (SlydePay), SMSGH(mPower), expressPay and many other players took their mobile payment systems to market, with the Telcos jumping in a few years ago with the disruptive mobile money system bringing on with it the mostly forgotten mass (the unconnected) these systems have not backed down since then, convenience was is constantly handed over to the regular Ghanaian mobile payment consumer and the story has improved positively over the past 10 years. There is still a lot of work to do in this industry but what we truly appreciate the growth that has and is already taking place. It’s phenomenal.
With the end user as the main focus and incredible innovations, Ghana can definitely reach the goal of becoming a cash-light economy in the next five years or less. How cool will it be to have cards and/or mobile applications you can use to pay your taxi, groceries, make purchases online, make transfers both locally and internationally, in fact do every payment transaction on your mobile device in any currency. Our previous blog post; Bank is a Waste of Time — a conversation with Ghanaian taxi drivers, gave us insights as to the pain most users (in this case, taxi drivers) continue to experience.
Our interactions with taxi drivers in preparing that blog post and many other end users in various sectors made us understand the dying need for fintech breakthroughs in Africa and Ghana to be specific.
Generally in the Ghanaian financial technology industry, the common goal is “promoting and maintaining a cash-light economy” as well as creating innovative technological platforms that will make the accessibility and usability of financial systems faster, easier and more convenient without compromise on security.
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