Skip to main content

Financial Services Digital Transformation Led by FinTech

If you thought that the upside potential for FinTech growth -- and the likelihood of a big disturbance within the banking industry status-quo -- was limited to North American and Western European markets, then you would be mistaken. This very significant intrusion is truly a global phenomena.

New research has uncovered data that suggests the FinTech sector in Africa is now poised for exponential and rapid growth that will challenge existing financial services providers, despite the fact that it's in the early stages of adoption relative to the rest of the world.

According to a worldwide market study by Frost & Sullivan, the FinTech industry in Africa may experience a similar disruption seen in Australia -- a country with financial services development comparable to South Africa.

African FinTech Market Development Outlook

A case in point: the financial sector in Australia is set to take $10 billion in revenues away from the big Australian banks and contribute $3 billion of new revenue from 2015 to 2020.

"The African continent has embraced mobile communications at a faster rate than other parts of the world, while also pioneering mobile technologies such as M-PESA, through which almost 50 percent of payments are being made by Kenyans," said Wayne Houghton, director at Frost & Sullivan.


Africa's under-developed banking infrastructure means that the FinTech wave will more likely be an enabler of financial inclusion than the typical disruption seen in more developed markets.

With at least 60 percent of the adult population on the continent still without a bank account, Africa offers significant opportunity for the industry.

Financial Services Ongoing Digital Transformation

Globally, an increase in the use of algorithm-based banking and robo-advice is set to significantly affect the financial planning market, and it's only a matter of time before these trends find application in Africa.

Artificial Intelligence (AI) systems are already being used in social media networks to manage the digital ecosystems of established financial institutions, enabling a more uniform consumer experience among diverse types of services.

For example, MyBucks is taking advantage of the power of AI systems to assess the credit-worthiness of customers in the African market, where the required data points for modeling default rates have previously been notoriously difficult to acquire.

MyBucks and TagPay have already joined the growing list of international companies to have taken an interest in Africa's FinTech industry -- competing with local startups such as Kenya Fintech, SnapScan and Rainfin.

According to the Frost & Sullivan assessment, their analyst predictions suggest that Apple Pay and Android Pay will be the next revolution in banking, with a number of bets being placed on the emergence of a Facebook bank. That being said, the global implications to the financial services sector could be a dramatic increase in new disruption from FinTech.

Popular posts from this blog

Demand for Quantum Computing as a Service

The enterprise demand for quantum computing is still in its early stages, growing slowly. As the technology becomes more usable, we may see demand evolve beyond scientific applications. The global quantum computing market is forecast to grow from $1.1 billion in 2022 to $7.6 billion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). That's a five-year compound annual growth rate (CAGR) of 48.1 percent. The forecast includes base Quantum Computing as a Service, as well as enabling and adjacent Quantum Computing as a Service. However, this updated forecast is considerably lower than IDC's previous quantum computing forecast, which was published in 2021, due to lower demand globally. Quantum Computing Market Development In the interim, customer spend for quantum computing has been negatively impacted by several factors, including: slower than expected advances in quantum hardware development, which have delayed potential return on inve

AI Semiconductor Revenue will Reach $119.4B

The Chief Information Officer (CIO) and/or the Chief Technology Officer (CTO) will guide Generative AI initiatives within the large enterprise C-Suite. They may already have the technical expertise and experience to understand the capabilities and limitations of Gen AI. They also have the authority and budget to make the necessary investments in infrastructure and talent to support Gen AI initiatives. Enterprise AI infrastructure is proven to be expensive to build, operate and maintain. That's why public cloud service provider solutions are often used for new AI use cases. AI Semiconductor Market Development Semiconductors designed to execute Artificial Intelligence (AI) workloads will represent a $53.4 billion revenue opportunity for the global semiconductor industry in 2023, an increase of 20.9 percent from 2022, according to the latest worldwide market study by Gartner. "The developments in generative AI and the increasing use of a wide range AI-based applications in data c

Industrial Cloud Computing Apps Gain Momentum

In the manufacturing industry, cloud computing can help leaders improve their production efficiency by providing them with real-time data about their operations. This has gained the attention of the C-suite. Total forecast Industrial Cloud platform revenue in manufacturing will surpass $300 billion by 2033 with a CAGR of 22.57 percent, driven by solution providers enhancing platform interoperability while expanding partner ecosystems for application development. ABI Research found the cloud computing manufacturing market will grow over the next decade due to the adoption of new architectural frameworks that enhance data extraction and interoperability for manufacturers looking to maximize utility from their data. Industrial Cloud Computing Market Development "Historically, manufacturers have built out their infrastructure to include expensive data housing in the form of on-premises servers. The large initial upfront cost of purchasing, setting up, and maintaining these servers is