FinTech Software Development in Africa
FinTech is rapidly becoming one of the most critical and transformative sectors in business today. FinTech is short for financial technology and covers an entire industry of disruptive innovations. FinTech software solutions include a wide array of categories such as:
- Payment processing
- Money transferring
- Blockchain technology
- Digital insurance
- And more!
According to Deloitte, the global Fintech market has doubled in size since 2017 and has now become a $100 billion industry. This is an industry with the power to transform and improve the lives of everyone. In Africa, FinTech is booming. In this blog post, we will look at the current status of FinTech software development in Africa, its challenges and opportunities, its impact on financial services, and the latest trends and technologies shaping the future of FinTech in Africa. Read on!
Conditions of The FinTech Software Development in Africa
Currently, the landscape of FinTech software development in Africa is swiftly expanding, largely due to the popular response to the Covid-19 pandemic of accelerating towards digitization in all fields. In 2021 alone, over 1.6 billion U.S. dollars were invested in FinTech development across 153 deals in Africa. Also, between 2020 and 2021, the number of tech start-ups in Africa exploded to 5,200 individual companies.
African FinTech software development is bringing greater access to financial services not just in Africa but across the whole world. As this industry is growing, Africa is seeing more jobs and economic growth.
Challenges and Opportunities for FinTech Software Development in Africa
FinTech software development in Africa faces many similar challenges to that of the rest of the world. Finding and retaining talent is challenging in such a dynamic environment, where the right skills are highly valuable. If your organization is struggling to find the team members you need to achieve your goals, consider working with a reputable partner who can provide staff augmentation services.
Although there are challenges, there are also many opportunities for FinTech software development in Africa. $1.3 billion USD was raised in 2021 alone by FinTech startups across Africa. Experts are predicting rapid growth in this area that is likely to be beneficial for individuals and communities across Africa.
The Impact of Software Development on Financial Services in Africa
The impact of software development on financial services in Africa is transforming the way people in Africa handle money. In South Africa, some banks that utilize FinTech have been launching with zero fees. Additionally, African FinTech platforms for customers can be up to 80% cheaper and provide 3x greater interest on savings than traditional solutions. Not only is FinTech changing the way citizens transact, but the expansion of the FinTech industry is also creating new jobs and opportunities for businesses and individuals alike. Additionally, new trends driven by emerging technologies are reshaping African culture.
Trends and Technologies Shaping the Future of FinTech in Africa
For just one example of how FinTech in Africa is driving trends, consider the use of mobile cell phones for transferring money. The Covid-19 pandemic paused travel for a few months, causing people in Africa to find cashless methods of making transactions, and they began using cell phones to do so. The trend has stuck around and will continue to shape the future of the FinTech software development industry. Additionally, the greater use of cell phones, the cheaper cost of internet networks, and the rise of remote work are vital factors that are expected to boost FinTech in Africa to an even greater level.
The SovTech Heartbeat
The African FinTech industry is exploding. Several exciting companies are at the forefront of this revolution. Budding entrepreneurs are defying the odds and breaking into one of the most lucrative industries. As events unfold, we at SovTech want to make sure that encouraging stories of success are shared and told. That’s why we’ve created the SovTech Heartbeat – to highlight the remarkable efforts of new companies that are working to expand access to financial services and create more secure and convenient ways to transact. If you agree with our mission to inspire innnvoation and want to learn more about the people changing Africa for the better, head to our SovTech Heartbeat and learn about the top 100 Fintech platforms in Africa.