Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

FinTech

East Africa Com: Fintech collaboration key to regional growth

Article Image
Absa Bank Tanzania's CEO, Abdi Mohamed, speaking at the virtual East Africa Com 2022 conference, said that the collaborative effort between traditional banks, telecoms companies and fintech companies is important to East Africa's technological advancement.

Historically, banks and telcos were very separate entities – customers walked into branches and did their transactions, and a lot of legacy systems were used back in the day, Mohamed said.

However, there has been exponential digitization growth both from a banker's perspective as well as from operators. Initially, the relationship between banks and telecoms companies was competitive but over time the relationship has become more collaborative, he added.

"There has been a lot more partnership in the last few years and the bigger role that fintechs have played in creating the interaction between telecommunications companies and financial institutions is very vital. Even though a lot of progress has been done, there is room for interfaces to be developed to allow for more innovation as the continent moves along," Mohamed noted.

History of innovation

The East African region is ahead with innovation of mobile payments he said, due to Safaricoms M-Pesa launch back in 2007, which has meant the region has had over 15 years of working and developing innovative mobile payment solutions.

He also mentioned that regulators in East African countries are supporting innovation, while the age of the population has also played a pivotal role in keeping East Africa ahead of the game.

"Because we are dealing with a younger population, the level of adoption towards innovation is likely to be higher. Today, we are in a place where the banks and telcos as well as the fintechs all understand the need for collaboration and the need to disrupt together because the continent is still largely cash based," the Absa Bank Tanzania CEO explained.

He said it is imperative for all the stakeholders to work together to get those still using cash to be digitized.

East Africa Com 2022 continues and you can still register for free here to watch live or get access to on-demand content from the event.

Related posts:

*Top image source: Man with phone photo created by DCStudio - www.freepik.com

— Matshepo Sehloho, Associate Editor, Connecting Africa

Innovation hub

Story

Hot startup of the month: Rwanda's Smart Ikigega

This month's hot startup, Smart Ikigega, wants to revolutionize the rural agricultural trade ecosystem in Rwanda by helping farmers access finance and harvest insurance.

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

More Innovation hub

Sponsored video

More videos

Flash poll

All polls

Latest video

More videos

Africa Tech Perspectives

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

Story

Challenges and opportunities for women's tech careers

A new survey reveals that COVID-19, the cost-of-living crisis, skills shortages and a lack of mentorship have negatively affected women's career development over the past two years.

Story

Survey: Opportunities for Women in Tech

Take our new survey for women across Asia, Europe and Africa looking at the biggest challenges and opportunities for women-led enterprises and trends in tech careers for women.

More AfricaCom perspectives

Guest Perspectives

Story

Omdia View: July 2022

By Omdia Analysts

Kenya and Zambia move towards 5G with new spectrum allocations while Tunisie Telecom plans to shut down its 3G network - that and more in this month's Omdia View.

Story

Omdia View: June 2022

By Omdia Analysts

5G was the major news trend across Africa in June, as Orange became the first operator to launch 5G in Réunion and operators in Senegal accelerated their 5G plans despite spectrum delays.

More Guest Perspectives

Industry announcements

More Industry announcements

Partner perspectives

All Partner Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up