A healthy, robust regulatory FinTech ecosystem will enable growth opportunities for many sectors, including software, data analytics, payments, platforms, e.g. (peer-to-peer lending and trading), particularly mobile banking which has been the backburner of the growth of gambling in Africa.
A sign just how significant FinTech has become a global investment jumped three-fold between 2014 and 2018, reaching USD34.4 billion according to Statista. By some estimates, that investment will at least double again by 2022. Although most FinTech investment is currently in the US, which captures 80% of this spending, relatively little investment has occurred in Africa that could and should change many of the necessary elements that exist in Africa to develop FinTech ecosystems.
There is a good reason that the region has the collective will to give rise to these ecosystems and reap their broader economic benefits. A perfect, example is South Africa has the highest number of crypto users in the World. Another country is Nigeria; the use of bitcoin is popular among youth. Establishing and nurturing a FinTech is difficult given the level of sustained collaboration that is necessary among stakeholders in the sector the governments, financial institutions, and entrepreneurs. For a FinTech ecosystem to function, it is imperative that each participant clearly understands its role, as well as the benefits it stands to gain from involvement. Building a sustainable FinTech government must implement and enforce policies and a regulatory environment that will ease the development of the FinTech ecosystem. Doing so, relax all business activity and hiring by financial service and technology firms, the gambling sectors, among others. It also improves overall competitiveness.
Further, many of these financial institutions in Africa are stimulating their innovations by establishing a partnership with FinTech firms-to-Business owners.
These partnership is strengthening the competitive position of financial intuitions, for example, the gambling sector the time frame for transactions is quickly flexible and the freedom to access the services anytime, anywhere even if you are on the go is one of the great benefits of the FinTech ecosystem in Africa.
