5 Reasons Fintech In Africa Is Different From The Rest Of The World
Africa leads the way in sector convergence
Africa is ahead of the rest of the world when it comes to convergence between different sectors. Because of the unserved demand for financial services, fintech is becoming relevant for players in other sectors. And the widespread use of mobile wallets is enabling companies that are already serving low and middle income segments to broaden their service offering to include other financial services.
Take the prepaid solar sector pioneered by M-KOPA Solar and others. They started out as prepaid solar businesses but they are now becoming consumer asset finance businesses. If you build up a loyal customer base in any sector, you will discover that you can offer financial services to them through your platform to create a more solid business model.
This is only set to increase over the next few years. Health companies will start launching health insurance, e-learning companies will start offering education loans. The barriers between sectors are eroding, and will continue to do so.