Africa is a major adaptor of financial technology and has seen a significant increase in the number of start companies over the past 5 years. From a paltry 12 companies in June 2008, the industry currently comprises 240 companies operating across the financial services value chain, from digital wealth management and credit-tech, to payment and remittance platforms as well as bespoke digital Banking platforms amongst others.
According to the Central Bank of Nigeria the Fintech industry in Africa attracted more than $400 million in investments in 2019 alone, enabling the country rank amongst the top three destinations for Fintech investments in Africa (alongside Egypt and South Africa).
This rise and adaptation did not just occur overnight; the disruption commenced in the early 20th century in Nigeria and climaxed around years 2015, when Africa startups became the second most popular destination for Venture Capital investment. In that year alone, the continents Fintech startup received around $320 Million up to year 2018. By this time, banks and conventional retail outlets had awakened to the global digital economy and had begun to overhaul their digital banking offerings and technology services.
It is impossible to speak about Fintech disruption in Africa without mentioning Interswitch, the company that pioneered the first digital transaction switching and electronic payments processing in Africa. Established in 2002, the company also owns Quickteller, an online payment and wallet mobile app and Verve, a pan-African chip and pin payment card and lastly, by November 2019, the company was valued by the African Private Equity & VC Association at $1billion following a $200 million investment (for a 20% stake) by Visa.
