Fintech, including mobile wallets that essentially function as bank accounts, is changing the way ordinary Africans manage and use money, albeit not in the same manner as developed economies. The continent’s fintech start-ups are building an entirely new infrastructure instead of adapting an existing one.
According to the latest Disrupt Africa Tech Start-Ups Funding report, fintech start-ups received the most financial backing in 2016, raising a combined US$31.4 million or 24% of the overall total. In the same year, close to 150 start-ups across the board raised more than US$129 million.
South Africa, Nigeria and Kenya continue to be the three most popular investment destinations, accounting for 80.3% of the funds secured. Egypt (which ranked fourth) saw more than 100% growth in fundraising.
Meanwhile, financial institutions are turning to technology to improve the effectiveness of their processes and reduce risk.
