FINTECH NEED TO SPEND MORE TIME THINKING AND PLANNING THEIR PRODUCTS AND MUST BE TIGHT IN TERMS OF THE RELATIONSHIPS THEY BUILD WITH THEIR CUSTOMERS .
INDUSTRY WATCH
FINTECH NEED TO SPEND MORE TIME THINKING AND PLANNING THEIR PRODUCTS AND MUST BE TIGHT IN TERMS OF THE RELATIONSHIPS THEY BUILD WITH THEIR CUSTOMERS .
At this time of the year there is usually a flurry of articles attempting to lay out trends to look out for in various industries over the coming months . This is a good exercise as it gets one thinking about industries broadly and technology specifically . However , it would be remiss to embark on this exercise without first taking stock of where we are now .
Challenges ahead into play in 2025 will effectively form the framework within which e-money capabilities will be governed .
Opportunities and drivers
Let us take a moment to appreciate how this looks in the broader African context . Firstly , it means there is significantly less money knocking on the doors of new and innovative businesses that need investors .
The fintech ecosystem is currently in a period of stress , less so for incumbents but noticeably for newcomers .
This stress is a direct result of macroeconomic pressures piling up to generate headwinds for new market entrants . As we all know , when the macro picture is less than rosy it affects play out on the ground . In summary , there is less money floating around , less money from investors and most notably , less disposable income in the hands of consumers .
Regulation will continue to play an important role in how the industry evolves . The FATF ’ s grey listing earlier this year has had a significant impact on businesses such as ours .
We are under increasing scrutiny , not because anyone thinks we present any more risk than before , but because accountable institutions must demonstrate that they are confident money is not being laundered or used for nefarious purposes . The result is that fintech need to spend more time thinking and planning their products and must be tight in terms of the relationships they build with their customers .
Regulation is also expected to present immense opportunities , especially in Southern Africa . South Africa , for example , lags other regions in the realm of mobile money . Legislation which is expected to come
Just recently , a payments processor headquartered in France lost 53 % of its value , this kind of scenario has a knock-on effect across borders . However , there is a massive opportunity for fintech that have bootstrapped themselves up in the uniquely African context .
What does this opportunity look like ?
For starters , there continues to be a great deal of disruption in the market . FinTech , mobile network operators , MNOs and banks will approach the challenges and opportunities differently . The ones that emerge from this phase in a strong position will be those that have thought about the economics of their proposition carefully , because the opportunity that presents itself in tough times is likely more scalable from an addressable market perspective .
On the other hand , those who react will focus on price .
A war on price is a race to the bottom . On the contrary , the businesses and fintech that get through the tough times will be those that focus on customer experience , CX . It may be considered an intangible that sits between the bricks and cogs of a business , but it is crucial .
In difficult conditions , every business focuses on customers returning and using their products and services more frequently . This is not easy , or
Andy Jury , CEO Mukuru
www . intelligentcio . com INTELLIGENTCIO AFRICA 65