Kenya, South Africa and Nigeria are the main fintech hubs according to a report by the State of the Fintech Industry in Africa 2020 speak Africa FinTech Summit alongside EFG EV Fintech. The 3 countries are home to 450 companies and are driven by strong demographics such as early regulation, increased connectivity and proactive governments.
South Africa has been an early adopter of fintech regulation and development, spurring digital innovation and creating e-money solutions since 2009. Estimates give South Africa over 200 fintech companies spanning multiple insuretech, richtech, lending, and cryptocurrency products.
Loan fintechs seem to be the most popular, with some of the most prolific being Lulalend and Fundrr, among others. Savings and investment fintechs are such as Prospa and 22Seven.
Nigeria is home to Africa’s most diverse fintech ecosystem, with a population of over 200 million, and the continent’s largest fintech ecosystem with around 200 stand-alone companies. Fintechs in Nigeria are among the largest on the continent, like Interswitch and Flutterwave.
Loan apps like Renmoney and Carbon use alternative credit scoring algorithms to provide instant, unsecured, and short-term loans. CowryWise and PiggyVest are prolific savings and investments alongside personal money management.
The development of fintech in Kenya was mainly driven by MPesa allowing users to deposit, transfer money, withdraw, access credit and savings. Mpesa has an active user base of 30 million people out of a population of 52 million.
The 63 pages Africa FinTech Report 2020 was dedicated to regulators, innovators and thought leaders driving the growth of the continent’s fintech industry.