Browsing: Financial Inclusion

Financial digital transformation is key to Africa's financial inclusion. www.theexchange.africa

Africa moving to digitize regional financial markets

Banking

The African Development Bank (AfDB) has inked a massive grant agreement to the tune of $400,000 to modernize the regional financial market infrastructure in West Africa.

The funding is to be extended via the West African Monetary Union (WAMU) and among other things is meant to fund the creation of a digital platform to automate securities issuance for the regional financial market.

In a press release, the AfDB said the funding will also help reduce the holding period preceding subscription allocations and registration on the said digital platform.…

Mobile technology: Death of the bank branch?

Business

The financial services space is being disrupted by new entrants that are nimble and more innovative. The overwhelming result of this has been the closure of bank branches right across the broad spectrum of the banking sector and across the country. 

Whenever a branch closes press space is taken up by the banks running adverts citing the growth and advent of mobile technology to be the cause of bank branch closures. To the passive reader it would then look as though technological advancements, growth, and adoption together with the prosperity of banks with respect to their branch networks are mutually exclusive.…

[elementor-template id="94265"]

…

Africa’s Cashless Payment Revolution 

Africa

Africa’s Cashless Payment Revolution, According to World Bank data, more than two-thirds of Africa’s population has no access to the formal banking system. This is largely the direct result of challenges such as underdevelopment, financial illiteracy as well as a predominantly rural based population. 

These factors among others have led to a situation where banking is both inaccessible and overly expensive for the bulk of the population. Further, African economies are driven by an informally oriented economic climate; as a result, banking for many is not an option. 

This situation has prompted innovative approaches to avail financial services. Among the disruptions in financial services, there has been a rise of fintech to cater for payments outside of the banking system. Some of these include mobile money payment solutions and online payment/receipt platforms. 

Fintech Start Ups Attracting Investment 

This sector has become one of Africa’s fastest-growing in the digital …

Banks in Africa hasten use of technology for financial inclusion

Small Business

Just before the onset of Covid-19, banks in many parts of Africa were pushing for adoption of online-based financial solutions but with little pressure. Then came Covid-19 and changed how people access their finances; this has created an urgency of sorts to promote financial inclusion.

Some governments are currently providing incentives to pay for goods or services digitally, through mobile money or e-wallets. For example, Uganda has cut mobile money transfer fees; Egypt, Liberia, and Myanmar have increased transaction size limits, while authorities in Bangladesh, Cameroon, the Democratic Republic of Congo, Ghana, Kenya, Mozambique, Pakistan, Rwanda, Senegal, and Zambia have taken both sets of measures (cutting mobile transfer fees and raising transaction size limits) in response to the pandemic.

When Kenya reported its first case of Covid-19, the Central Bank of Kenya called a consultative meeting with Bank CEOs and immediately passed ways of ensuring that the country adopts use

…

APPROACHES TO FINANCIAL INCLUSION 

African Entrepreneurship

Financial exclusion remains a major issue especially in the informal sector. Expansion of services in this area by banks will not be very easy because of the special situation and needs. This article suggests that while structural solutions are expensive and nevertheless must be pursued, banks should think of designing a process response to the problem, drawing on the experiences and practices of the traditional lenders. 

Much progress has been credited to money transfer services that were introduced by mobile network operators (MNOs) in 2008. These services are also supported by a network of agents across the country offering a range of services and products, whereas the traditional bank-dominated financial system remains mostly urban-based and is still unaffordable for the vast majority of Tanzanians and their businesses. 

Where ordinary citizens once had to enter into risky arrangements to send money urgently to their families, mobile money services have almost eliminated

…

Video: The new normal of African development

Video

FurtherAfrica Insights – COVID19 series with João Sousa from Xynteo.

A conversation about the role of different stakeholders in the development process and the opportunities to reshape inclusion particularly from the private sector in a post COVID19 world.…

Why Innovation Is Africa’s Most Exciting Story 

Tech & Business

This period of unprecedented economic and societal upheaval is accelerating development of Africa’s digital future. What’s happening? What kinds of opportunities are out there for investors? Clearly, risk has risen. Nobody can predict what level of earnings companies in any geography will be able to generate when the COVID-19 crisis eases. However, we are encouraged by some of what we are hearing from sources around sub-Saharan Africa. I am advising clients to look closely at trends being accelerated as a result of the pandemic. Some African innovations will have global impact—we refer to this as African solutions to global problems.

Hard-won experience from HIV/AIDS, Ebola, tuberculosis and other diseases prepared African officials for rapid and strict containment of the novel virus. Contact tracing, mitigation, and reporting systems are already in place. So far, there’s no indication that the coronavirus has infected very large numbers of Africans—particularly the urban poor—although this

…

Nigerian fintech Aella picks up $10M debt financing for financial inclusion

Investing

Nigerian fintech start-up, Aella has raised a $10m debt financing round, from HQ Financial Group (HQF), Singapore-based private company specializing in new material science, semiconductor and blockchain financial investments.

This debt financing round is Aella’s second raise and will bolster the company’s commitment to serve the underbanked population in West Africa and other emerging markets. The FinTech is focused on improving financial inclusion for West Africa’s low-income segment.

Aella was founded in late 2015 by Akin Jones, CEO and Akanbi Wale, CTO in Lagos, Nigeria and has remained committed to building trustworthy credit for emerging markets with an initial focus on Nigeria and the Philippines, where the company is licensed to operate. Aella has made a visible impact on the lives of more than 300k borrowers across its Employer Backed and Direct to Consumer Verticals, who now have access to simple financial products.

For millions of poor and low-income households, …

9th Global Islamic Microfinance Forum to be Held in Lahore – Pakistan

Banking

9thGlobal Islamic Microfinance Forum (GIMF) will convene in Lahore – Pakistan on 11th – 13th December, 2019 under the theme of “Evidence of Impact and Financial Inclusion” to explore and discuss innovative financial inclusion strategies that can create clear pathways to poverty alleviation. This Apex event is organized by AlHuda CIBE in Association with Akhuwat and Sponsored by Islamic Corporation for the Development of the Private Sector- ICD. ICD is one of the premier Islamic multilateral financial institution for the development of the private sector.

More than 20 countries will be participating in this prestigious event and around 25 international speakers will be addressing in the event. Majority of the speaker are industry leaders and experts. AlHuda is striving for poverty alleviation through Islamic microfinance by providing advisory, consultancy, research and capacity building services and organized 8 annual events in different countries of the world. This …

African Fintech: Growth, Profit and Forecasts

Africa

With the growth of online banking and online currencies in Africa, the industry of financial technology has seen a growth of over 60% in the past years. Following up a surprising growth, the industry also managed to raise over $320m USD at the same time.

Investment in African Fintechs nearly quadrupled in 2018 to $357m USD, with startups in Kenya, Nigeria and South Africa accounting for the largest share, according to The Mobile Economy, Sub-Saharan Africa 2019 report from the GSM Association.

MTN announced in July that it had been granted a full Super Agent Licence in Nigeria for its Yello Digital Financial Services Limited subsidiary. This will enable the scale launch of MTN Nigeria’s Fintech strategy. Enabling it to convert its existing airtime agents, and recruit other small businesses, to distribute financial services. MTN’s group CEO Rob Shuter told Forbes correspondents earlier this year that “mobile will be at …