FinTech and the future of banks and financial services in Africa

This chapter examines the role of financial technology (FinTech) in transforming the delivery of banking and financial services and its potential in promoting financial inclusion in Africa. The chapter discusses the main types of FinTech which include mobile money, mobile banking, crowdfunding, and blockchain technology and cryptocurrencies and their market developments in Africa. FinTech has introduced the use of new technologies that minimise the costs of providing banking and financial services, creating market access opportunities for new entrants, broadening access to new segments of the market and customers, and impacting on the competition structure of the existing financial service providers. The chapter then looks at the challenges facing FinTech in Africa as well as the impact of the COVID-19 pandemic on Africa’s FinTech space. The chapter also highlights the importance of optimum regulation, which should be beneficial to innovations as well as participants—providers and users.