Developing an app without a clear multichannel strategy will result in more challenges than successes .
Andy Jury , Mukuru CEO
FinTech ’ s power lies in solving problems not just in delivering shiny apps
Andy Jury , Chief Executive Officer , Mukuru , explains pioneering effects of FinTech in Africa and why all too often , companies or entrepreneurs in the FinTech space find themselves in a mindset of ‘ building something that shines ’ and then expect that associated demand , commercialisation and scale will automatically happen .
FinTech is poised to continue disrupting financial services and is uniquely capable of driving formal financial inclusion on a mind-bogglingly large scale . However , there is a risk that in the pursuit of innovation , companies develop FinTech solutions for technology ’ s sake and not to address real needs , and that if real needs are not addressed , the solution ( s ) won ’ t gain traction .
All too often , companies or entrepreneurs in the FinTech space find themselves in a mindset of ‘ building something that shines ’ and then anticipating that associated demand , commercialisation and scale will automatically materialise . It doesn ’ t work that way in Africa for a variety of reasons , chief of which is that there isn ’ t a large , ready-made , fully digitised homogenous demand pool that you might find in other parts of the world and for the most part , ‘ cash is still king ’. The largest part of the addressable market is still in a cashintensive , informal financial services ecosystem .
Banks in Southern Africa are looking at a services-based architecture that will support differentiated products for customers , particularly in the app space . In terms of banked customers within the South African market , apps are certainly becoming more the norm . Even if banked customers don ’ t have access to the Internet in other ways , they have access to their mobile phones and so there is growth in the app-based market .
This certainly is a positive development , but an app will only live up to its promise if a company has
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