Africa will likely leapfrog the top fintech regions if startups on the continent adopt new technologies, the Worldwide Fintech 2023 report by the Boston Consulting Group and QED Investors has stated. The report points to the African continentโs young population likewise as the projected population growth of 1.2 Billion more inhabitants by 2050.
Overcoming Africaโs Financial Exclusion Woes
Reportsย by the Worldwide Fintech 2023 report by the Boston Consulting Group and QED Investors, Africa and the Middle East are likely to leapfrog established fintech centers if they adopt new technologies. The report likewise pointedย outย that while cash is โstill kingโ in Africa, fintech startups are ideally positioned to solve the continentโs financial exclusion woes. By overcoming this, the fintechs willย assist make Africa one of the fastest- growing regions globally.
On how Africa is likely toย doย this feat, the report pointed to the continentโs projected population growth of 1.2 Billion more inhabitants by 2050. The report likewise cited Africaโs position as the continent with the youngest population universally. Nigeria, Africaโs most populous nation, is identified in the report as one example of the countries on the continent whose demographic profile makes it an ideal candidate to propel the fintech market in Africa.
Smartphones Present Major Fintech Opportunities in Lending and Payments
Asย forย the technology that isย veryย likely anchor the continentโs expected growth, the report stated smartphones โ which are already the primary way African residents access financial services โ attract wholeย lotย of fintech opportunities.
โ Thisย isย why, most Africansโ 1st interaction with the financial services sector couldย be through their smartphonesโpresenting major fintech opportunities in payments and lending for regional champions with full-stack attacker models,โ the report explained.
The report, onย theย otherย hand, acknowledged that telco fintech players have dominated the African fintech market. It alsoย mentionedย that these will likely retain their dominance even as more fintech startups switch to new technologies.
As shown by the reportโs data, revenue earned by African fintech startups is expected to grow 13 times and top $50 Billion by 2030, the fastest price by any region. Latin America has the second-highest projected growth with 12.5x, while Asia-Pacific is projected to become the largest fintech market by 2030.
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