Will a Fintech and Neobank revolution shake up Africa’s financial scene?

Established African banks have enjoyed profitable banking markets for decades but face growing competition from Fintech companies using the latest Blockchain technology. Only 43% of Africa’s population has a traditional bank account, creating huge opportunities for financial services providers that are able to tap this massive unbanked market. Providers are trying to gain access to the masses through mobile feature phones and increasingly through smartphones. African mobile phone penetration is high and sub-Saharan Africa (SSA) is the world’s fastest-growing mobile phone market. It is already the world’s biggest mobile money market.

The mobile money revolution is disrupting established banking in Africa, which traditionally has been one of the most profitable banking markets in the world. Fintech and paytech start-ups have been spawned in a number of countries – including Kenya, South Africa, Nigeria and Egypt – and are among the first unicorns produced in the region. The Covid-19 pandemic has led to a lot more e-commerce and accelerated the digitalization of African banking and financial services.