Financial Crime World

Supervision of FinTech in Africa: Key Developments and Trends

Introduction

The African fintech landscape is rapidly evolving, with a growing number of firms expanding their services across the continent. Leveraging remittances as a launch pad, these companies are offering new products such as health services payment.

Key Points

FinTech Penetration and Adoption

  • The widespread adoption of mobile telephony has driven FinTech penetration in Africa.
  • Many startups have developed products that don’t require smartphones.

Cross-Border Activities

  • Foreign-owned MNOs are operating across the region.
  • New FinTech players are emulating this trend.

Technology Enablers

  • Cloud computing facilities and other technological infrastructure play a crucial role in shaping the range of FinTech products and services available in Africa.

Regulatory Frameworks

  • Regulatory frameworks for mobile payments and e-Money services are robust in many African jurisdictions.
  • These frameworks promote a broader range of services and encourage the financially excluded to use them.

Public Policies and Initiatives

  • Public policies and initiatives can significantly impact developing a healthy FinTech ecosystem.
  • Identifying FinTech as a tool in national financial inclusion strategies is essential.

References

  • GSM Association (2021). The Mobile Economy: Sub-Saharan Africa 2021
  • World Bank (2021). Remittances Prices Worldwide
  • Catalyst Fund (2021). The State of Fintech in Emerging Markets