FINAL WORD
Can African fintech leverage AI , taking payments to the next level ?
Building on the progress enabled by cloud , Africa is undergoing a wave of transformation driven by AI and businesses do not need powerful computers to benefit from technology , with most of the compute power available through cloud providers , says Lillian Barnard at Microsoft Africa .
It is difficult to imagine a time before the widespread adoption of mobile technology in Africa , particularly where financial services are concerned . For millions of unbanked people , transactions were limited to cash , postal services or even the barter system . Now , in much the same way as mobile payments completely disrupted the status quo , AI has the potential to propel the fintech industry into a new era of financial inclusion .
And perhaps most exciting of all is that Africa is not simply catching up with AIpowered developments , but surging ahead with innovative solutions that have considerable implications for the underbanked . Already , homegrown fintech companies have completely changed the way people in Africa transact , helping to reduce reliance on cash transactions .
Innovative payment solutions have revolutionised access to essential services , such that millions of people can now afford everyday necessities like airtime . In fact , research from McKinsey , has shown that these items are now available to lower-income households at up to 80 % less of the cost associated with traditional banking players .
And when one considers that half of Africa ’ s population is still unbanked or underbanked , we can begin to appreciate just how dramatic an impact the fintech sector has had on the very nature of financial services in Africa .
The net result in Kenya , for example , is that the adoption of digital payment solutions helped increase financial inclusion by as much as 25 % in just 15 years .
78 INTELLIGENTCIO AFRICA www . intelligentcio . com