Study: Africa Likely to Leapfrog Leading Fintech Regions if It Adopts New Technologies
Africa will probably leapfrog the highest fintech areas if startups on the continent undertake new applied sciences, the Global Fintech 2023 report by the Boston Consulting Group and QED Investors has mentioned. The report factors to the African continent’s younger inhabitants in addition to the projected inhabitants progress of 1.2 billion extra inhabitants by 2050.
Overcoming Africa’s Financial Exclusion Woes
According to the Global Fintech 2023 report by the Boston Consulting Group and QED Investors, Africa and the Middle East are prone to leapfrog established fintech facilities in the event that they undertake new applied sciences. The report additionally famous that whereas money is “still king” in Africa, fintech startups are ideally positioned to unravel the continent’s monetary exclusion woes. By overcoming this, the fintechs will assist make Africa one of many fastest-growing areas globally.
On how Africa is prone to obtain this feat, the report pointed to the continent’s projected inhabitants progress of 1.2 billion extra inhabitants by 2050. The report additionally cited Africa’s place because the continent with the youngest inhabitants globally. Nigeria, Africa’s most populous nation, is recognized within the report as one instance of the nations on the continent whose demographic profile makes it a perfect candidate to propel the fintech market in Africa.
Smartphones Present Major Fintech Opportunities in Lending and Payments
In phrases of the know-how that’s prone to anchor the continent’s anticipated progress, the report mentioned smartphones — that are already the first manner African residents entry monetary providers — convey important fintech alternatives.
“Accordingly, most Africans’ first interaction with the financial services sector may be through their smartphones—presenting major fintech opportunities in payments and lending for regional champions with full-stack attacker models,” the report defined.
The report, nevertheless, acknowledged that telco fintech gamers have dominated the African fintech market. It added that these will probably retain their dominance at the same time as extra fintech startups swap to new applied sciences.
As proven by the report’s knowledge, income earned by African fintech startups is predicted to develop 13 occasions and prime $50 billion by 2030, the quickest fee by any area. Latin America has the second-highest projected progress with 12.5x, whereas Asia-Pacific is projected to grow to be the biggest fintech market by 2030.
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