Seen as the best lever for financial inclusion on the continent, Fintech companies in Africa have been attracting massive global attention. The solution has also seen increase too, rising from 301 startups in 2017 to 491 presently. The major driver of financial technology meanwhile is growth in global digital payment market. Consequently before 2022, the market is expected to expand by around 24% to $309.98bn. That, however, is a massive opportunity for tech savvy innovators and entrepreneurs looking for areas of focus.
Overall Nigeria is expected to lead the charge for digital payment in Africa considering its present low level of financial inclusion. According to the Central Bank Nigeria, of the total $551 million foreign investment in Fintech startups on the continent, Nigeria financial technology solution providers received a whooping $439.2 million, which is 80% of the total funding.
Therefore various players are looking for ways to milk the sector. Nigerian banks are positioning for future windfall in that sector. Access Bank currently runs a fintech foundry aimed at incubating fresh innovators to provide fintech solutions that will drive the next phase of digital payment in Africa. Likewise Sterling Bank has been organising networking events for players, while the Security and Exchange Commission is looking at policies that will fast-track the growth of the sector.
As well, Enhancing Financial Innovation & Access (EFINA), an organisation devoted to increasing financial inclusion in the country committed $2 million to scaling 6 startups in 2018.
All the efforts are expected to drive robust innovation as well as attract new players to the sector. Leading players in the sectors are etranzact, Remita, ChatPay, CowriePay, Opay, Flutterwave, Piggybank, Paystack, Paylater, Kiakia etc.