Fintech and Financial Inclusion in Botswana: A Review

Fintech and Digital Payments

Revolutionizing Financial Data Collection and Processing

Fintech is transforming the way financial data is collected and processed, changing traditional methods of saving and borrowing. Mobile payment services are gaining traction in Botswana, although at a slower pace compared to other Upper Middle-Income Countries.

• Digital Payment Adoption: 41% of the adult population in Botswana conducted digital payments in 2017, higher than Sub-Saharan Africa (34.4%) but lower than Upper Middle-Income Countries (62.2%).

Financial Inclusion in Botswana

Beyond Account Ownership

Modern financial inclusion definition considers factors beyond just account ownership, including usage, convenience, affordability, consumer protection, and target group.

• Account Usage: 9.8% of accounts owned by adults were not used in the past one year, higher than Sub-Saharan Africa (5.5%).
• Targeted Strategies: Financial inclusion strategy should be targeted towards access as well as usage to effectively promote financial inclusion.

Fintech and Payment Services Providers

Extending Financial Inclusion Services

Fintechs play a significant role in extending financial inclusion services, allowing innovation to achieve full financial inclusion while some markets are more cautious.

• Access to Formal Financial Services: As of 2019, 76% of the adult population in Botswana had access to formal financial services.
• Targeted Approaches: Strategies that target not only access but also usage are necessary to promote financial inclusion among the unbanked population.