Africa To Become The FinTech Land In The Upcoming Years
RegulationBit News Today1 min read
Since 2014, the biggest push for financial inclusion in the sub-Saharan region has come from the rise of mobile money, not traditional brick-and-mortar banks. Sub-Saharan Africa now leads the world in mobile money, with over a fifth of the adult population having a mobile money account.
The increasing role of mobile money accounts
Mobile money has rapidly increased in prominence in the sub-Saharan region.
A regional milestone was reached when mobile money accounts surpassed traditional bank accounts in several sub-Saharan African economies, a February 2019 International Monetary Fund analysis noted. Sub-Saharan Africa has more mobile money accounts per capita (both registered and active accounts), mobile money outlets, and mobile money transaction volume than any other region.
However, the COVID-19 pandemic has heightened the urgency of using digital financial services and consumer protection for the most vulnerable people, such as those with limited educational attainment or financial experience.
Risks associated with digital financial services
The data trails created by digital financial services can expose users to unauthorized disclosure, misuse of personal data, and discrimination.
As African governments push to digitise financial services, fintech is already helping them send cash transfers or other forms of financial assistance directly to citizens during the pandemic, on top of reaching businesses with emergency liquidity through safe, efficient digital transactions. "We started receiving phone calls from businesses desperately in need of digital payment solutions," she says.
According to a 2019 World Bank report, while Sub-Saharan Africa has made progress towards financial inclusion, women are still less likely than men to have basic financial services.
