The pace of change in financial services has never been faster! As Financial firms strive to stay ahead of technology demands to preserve their bottom lines and grow their customer bases as well as stay on the right side of regulators is so alive. The incumbent banking and payment providers are facing a myriad of challenges.
In their report ‘THE FUTURE OF FINTECH 2019’, Business Insider analyzes the five most important megatrends reshaping financial services industry and examine the business model changes being employed among different categories of fintechs as they strive to embed themselves further in mainstream finance and prove sustainability. The report also considers which elements of the fintech industry are rapidly rubbing off on incumbent financial services providers, and what the future of fintech will look like.
Locally, this wave is fully experienced with intense competition witnessed between digital money lenders and banks –even Saccos. Digital credit in Kenya has experiencing an explosive growth.
FSD Kenya reported towards end of 2018 that 29 per cent of mobile phone owners in Kenya have borrowed from M-Shwari amidst a possible 49 loan apps in the country.
“In Kenya’s digital lending market share, M-Shwari is followed by KCB M-Pesa at twelve per cent, Equity Eazzy at four per cent, Tala at 1.8 per cent, and MCo-op Cash at 1.3 per cent,” reads part of the report.
The report further shows that 46 per cent of digital borrowers in Kenya save digitally while 18 per cent have never saved digitally.
Kenya remains the pacesetter in the mobile money services regionally and globally with digital banking and money lending correlated to mobile phone ownership and internet access, albeit not directly proportional to that.
Communications Authority of Kenya released a report that indicated a growth in mobile phones ownership in Kenya up from 45.5 million in 2017 to 46.6 million in 2018 and internet subscriptions rising by 2.7% from 41.1 million in 2017 to 42.2 million in 2018.
Looking ahead, the culture of banking inside of walls should be disrupted so that banks can on board un-banked Kenyans and to retain the competitive edge in this game of numbers. A mix of technological developments, and financial services globalization will promise to ignite more major developments in the fintech space even before the year ends.
Fintech keeps growing in scale and breadth buoyed by disruptive business models. CIO East Africa taps into this status quo to host a two-day one of a kind Fintech Summit for the East African Market, slated on the 22nd and 23rd May 2019 at the Villa Rosa Kempinski hotel in Nairobi.
TO REGISTER, CLICK ON THIS LINK. https://events.cio.co.ke/event/east-africa-fintech-summit/
The Summit will be packed with informative sessions, both plenary and panel alongside an exclusive CEO Roundtable session.
Up for discussions include Future of FSIs from Disruption to Innovation, Addressing the Dark side of Digital Financial Transformation and the Future of Threat Intelligence among others whereas the prominent high profile speaker portfolio comprises of Dr. Wangusi Francis the Director General for Communications Authority of Kenya, Dr. Bright Gameli Mawudor, Head of Cyber Security Services, Mr. Kamau Kunyiha, CEO CreditInfo, Rose Muturi, CEO Tala, Laura Chite, CEO CIO East Africa among others.
Fintech is no longer just about digitizing existing financial products but Integrating Financial Services into applications and services we use every day. It has emerged as a global phenomenon that cannot be ignored!