Incumbents, investors combine to support Africa’s thriving fintech space
- Financial services incumbents and venture capitalists are playing leading roles in supporting Africa’s growing fintech sector.
- Fintechs have advantages over banks in terms of customer focus and agility.
- Collaboration between banks and startups is increasing, but challenges remain in terms of payment fragmentation and regulatory differences.
The fintech sector in Africa is experiencing growth with support from financial services incumbents and venture capitalists. However, startups require more regulatory support to facilitate scaling. Fintechs have demonstrated advantages over traditional banks in terms of customer focus and agility. Collaboration between banks and startups is increasing, but challenges related to payment fragmentation and regulatory differences persist. Although fintech has attracted significant funding, there is still a need for more investment in the sector.
