There’s no doubt in anyone’s mind about the untapped potential on this continent. It is abundantly clear that there are large underserved populations in Africa yet to be empowered to unlock their potential.
This is where fintech has been a game-changer on the continent. However, we are far from having arrived at a place of full formal financial inclusion, which means leading financial services companies underpinned by the best fintech technology must continue to champion digital transformation across the continent’s financial ecosystem.
It starts with a deep commitment to interoperability. In our world, interoperability means you are agnostic towards the type of money that people use.
So, whether it’s cash, digital wallets, or cards, it starts with opening your network to all the players in the ecosystem.
In our business, this philosophy underpins our belief in a “two-sided network” wherein customers and enterprises alike stimulate flows through initial payment interactions, which in turn stimulate subsequent flows and through network effects increase the speed at which the payment fly-wheel turns!.
Interoperability ensures that the customer has a voice, and the consequence of this is that weak propositions get overlooked at best and squashed in the theatre of public opinion at worst.
This interoperable customer-centric approach stands in stark contrast to the walled-garden mentality that has plagued some financial institutions, where – it could be argued – the focus is on maintaining control rather than serving the needs of the people.
When considering the bigger picture of unlocking the untapped growth potential in Africa, the vision of a leading financial services provider needs to extend beyond the non-negotiable interoperability and encompass the vast opportunities presented by the continent.
Africa continues to be a huge focus for us at Mukuru precisely because it is a massive untapped growth area, and so the orientation is geared towards continuing to monetise this potential.
We are constantly asking ourselves: How do we continue to capture more and more of the existing, and growing, remittance flow and secure it in a formal context?
This requires constant innovation and a finger tightly on the pulse of what the customers are saying and asking for. This cannot be overstated.
In a sector awash with well-used jargon, digital transformation will continue to be front of mind. This is because digitisation is sweeping across the African financial landscape.
Of course, certainly, from our perspective, we have witnessed a massive shift in the numbers of people adopting a digital store of money and interacting and transacting with the digital economy.
This should always remain front and centre – walking the journey of financial inclusion with customers… but, as already mentioned, only if it is built on giving customers solutions to their existing problems. There is little logic in creating a shiny service and hoping to create demand.
No discussion about the flow of money in Africa is complete without understanding the importance of mobile wallets. From our perspective, working towards having a wallet in each market where we operate ensures seamless operations.
This is strategic in addition to being pragmatic, as it enables a unified customer experience, which – when good – drives customer loyalty and trust.
Our business is also pragmatic, in that it recognises the importance of addressing the demographic shifts and labour shortages in the global north, where an ageing population and a dearth of workers in certain sectors create a demand for migrants.
By facilitating the flow of remittances and fostering financial inclusion, we work to capitalise on this dynamic and drive sustainable growth in the region, while also playing a big part in ensuring critical funds reach families for basic requirements such as food, education and housing while helping these customers take incremental steps on their digitisation journeys.
Leading fintechs will know that if you want to go fast, go alone, but if you want to go far, go together.
This is why, as a business, we are actively pursuing strategic partnerships to bolster our brand association and position ourselves as a leading player in the industry.
Innovation is at the centre of everything, and we are close to signing transformative deals that will have a marked impact not only on Mukuru but on the broader industry in Africa.
The fintechs that go the furthest in terms of unlocking Africa’s immense potential will be the ones that remain deeply committed to driving digital innovation and fostering financial inclusion while capitalising on the vast opportunities presented by this diverse, vibrant continent.
We believe that by embracing true interoperability, digital transformation at its most granular level, and by investing in strategic partnerships, next-generation financial services platforms will continue to be trailblazers in the evolving financial landscape in Africa. The potential that will be unlocked will be nothing short of awe-inspiring.
