TRENDING
wave, digital disruptors will create
marketplaces for FSPs to offer a host of
services to an aggregated client base.
“Mobile’s power in enabling citizens
to make and receive payments more
seamlessly, simply and securely
makes it imperative for businesses
and governments to collaborate on
and invest in developing solutions
that harness the power of digital and
drive inclusive growth for Africa’s
citizens, particularly at the base of the
pyramid,” Malhotra concluded.
Key takeaways
from the report
Raghu Malhotra, President, Middle East and Africa, Mastercard
and increase trust. HomeSend, a
remittance solution developed by
Mastercard for example, allows
affordable cross-border money
transfers and payments to mobile
money accounts, payment cards, bank
accounts or cash outlets, helping to
displace cash in Africa and globally.
Additional mobile solutions are
changing the face of the financial
sector and Malhotra points out that
applications such as Masterpass QR,
introduced in Africa in 2016, are game
changers for merchants, removing
the need for traditional point of sale
terminals. He highlighted in the report
that access to these type of solutions
is having a significant and positive
impact on all Africans and resulting in
stronger economies.
“Going forward we expect digital
disruption to gain further momentum
and to lead to exciting new business
models in an increasingly converging
industry. A glimpse into the future
shows that platform companies
will emerge as key industry players,
creating marketplaces for a host of
financial services and blurring the
lines between financial services and
technology providers,” says Verster.
18
INTELLIGENTCIO
Following in the footsteps of Fintech
companies, insurtech companies
have started to shake up the
insurance market in a second wave
of disruption by leveraging some of
the technologies from the first wave,
such as mobile payments systems, to
develop insurance products targeted
at the BoP.
By adopting innovative approaches
to risk assessment, distribution,
payments, administration and
product design, these insurtech
companies are able to achieve the
scale required to service the low-
income mass market.
According to Verster, much of the
success of enterprises in the first
two waves of digital disruption
can be attributed to the fact that
engagement and distribution
channels, pricing and premium
structures and payment channels
are aligned to the needs of low-
income consumers in their respective
target markets.
The report identifies that the current
models for servicing the BoP will
lead to the emergence of a new
type of digital disruptor. In this third
A number of common factors
have contributed to the success of
unlocking the base of the pyramid
market in Africa by leveraging
digital innovations. These include:
· Partnerships: By developing
partnerships, companies can tap
into the partners’ existing customer
base and quickly and efficiently
increase reach, trust, access and
customer insights.
· Mobile: Mobile technology
contributes to the simplification
of the user interface and is device
and network agnostic. Consumers
are familiar with basic mobile
technology and hence the use of
it can increase trust and open new
avenues of customer engagement.
· Data analytics: Data analytics
allow companies to create a better
picture of the customer and to tailor
products to the customers’ needs.
· Cloud computing: Companies
that embrace digital technology are
able to scale their operations quickly
and efficiently by leveraging cloud
technology. Cloud technology also
allows companies to replicate their
business models in new markets at
low cost.
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