In recent years, we’ve seen a ballooning of activity in the fintech scene, where financial companies and startups use artificial intelligence (AI) and other tech in their day-to-day processes.
As consumers increasingly turn to alternative, digital methods of managing their finances, tech-savvy startups and traditional financial institutions (FIs) alike are diving into the fintech industry. And investors would be wise to take note of this digital shift.
In Fact, The Global Fintech Market is anticipated to grow at a CAGR of around 20% over the next four years. The market value is expected to reach around $305 billion by 2025, according to GlobeNewswire.
Additionally, this year marked a watershed moment for the fintech sector, with the once clear distinction between fintechs and financial services now blurred significantly.
Virtually every incumbent financial institution is now looking inward and engaging in an innovation drive, spurred on by competition from fintechs amid the coronavirus pandemic. As such, incumbents are now actively investing in, acquiring, and collaborating with their fintech rivals.
With all these going on, Fintechs also continue to play a major role in helping us achieve quite a number of the 17 SDG Goals and Vision 2030. While many may argue that the FinTech Sector Lacks a Long-Term Vision, from blockchain, to mobile money and digital lending platforms, the contribution of fintechs has helped in one way or another, directly or indirectly achieve a number of SDGs Goals.
For example Building Blocks (BB) is a World Bank Food Programme (WFP) blockchain technology used to distribute humanitarian assistance and is helping to achieve SDG Goal 1 and 2.
This programme expands refugees’ choices of how they access and spend their cash assistance. WFP uses Building Block technology to transfer cash to Syrian refugees in Jordan and vulnerable families in Pakistan.
The refugees buy food from local retailers using a biometric scan of their eye. This digitizes and protects beneficiaries’ data, eliminates fraud, and lowers administration fees.
Not forgetting how the use of blockchain technology, which had helped revamp the fintech industry, has been used in renewable energy as a tool for decentralizing the electricity market, carbon credits, and climate finance.
Also, the World Bank established an innovation hub that uses blockchain technologies to address land administration, supply chain management, health, education, cross-border payments, and carbon market trading.
Away from blockchain, Mobile money platforms also helps to achieve SDG Goal No 1 and 2 (no poverty and zero hunger) through the employment of agents.
In Kenya there are over 160,000 M-Pesa agents who earn a living from commissions on transactions. With over 20 MNO and licensed third-party providers in Africa offering mobile money services, the number of agents employed are extrapolated at 500,000.
Well, these are just but a few examples of how fintech has played a huge role in achieving a number of SDGs, to further carry-on this discussion, join us for a fireside chat with Fiona Umulisa, Regional Director East Africa at Grey, Ted Pantone, CEO and Co-Founder Turaco , Ali Quedraogo, Head of Expansion Strategy MFS Africa and Andrew Letting Cluster Lead, East Africa Fintech and PSP Enablers at Mastercard as we explore on the ways that fintechs are becoming a huge contributor in achieving the SDGs and Vision 2030.
This fireside chat will bring a unique focus on the importance of sustainability and digital technology in reorienting the role of finance to help economies rebuild towards a more inclusive, resilient, and sustainable future.
The fireside chat will also aim at raising awareness among financial institutions on the strategic role that fintech could play in addressing the financing challenges of the sustainable development agenda including the role of fintech in:
The session will also cover a number of fintech topics from different countries; giving a perspective on what is available in the market, how to be more resilient and better prepared for innovative solutions, as well as providing participants with best practices on fintech in their market.
RSVP your attendance, join us then and reinforce your knowledge, and network with the industry.
When: Fri, 7th October Where: Nairobi Garage // Kilimani Time: 5:00 pm RSVP