TRENDING
DATA CAN DRIVE FINANCIAL INCLUSION IN AFRICA
We are in an era where transactions in Africa still happen in cash and the challenge is merging the cash and digital economies effectively , describes Sandy Rheeder at Mukuru .
Even though the world has embraced digital transformation , financial and economic inclusion still remain a significant obstacle . This is especially the case in Africa . According to the FinMark Trust 2022 report , most workers are still paid in cash , community merchants rarely access digital payments , and access to banking or ATM facilities is limited and costly .
But this means there are significant opportunities to be had especially when it comes to leveraging data to drive financial inclusivity across the continent .
First , let ’ s examine the challenges . Many merchants dread the administrative hoops of digital registration , part of these entail having to close the business , albeit temporarily , to register . Of course , there is also the shift in cash flow dynamics that digital settlements can cause . Adding further to this complexity is that even
It requires going on a journey with the customer to understand their pain points and develop solutions specifically designed to address those .
getting the basic documentation , such as proof of residence , can be a significant obstacle to register the business for digital payments .
Fintech can position themselves to provide a solution that can help those still sitting at the edge of digital inclusivity to become more active . As indicated , we are in an era where many transactions in Africa still happen
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