Against the backdrop of the fintech boom, this new report explains how African banks can still make a profit » africantrendtv

The adoption of financial technology in Africa is driven by the advantages of mobile internet penetration and funding from foreign venture capitalists.

Like Chipper Cash, Paystack and other well-known fintech companies are now running African banks for their money.

Even though banks face competition, there are still things they can do. CR2 has made a number of recommendations.

There is no doubt that Africa is currently witnessing an "evolution of banking" led by new fintech companies. It seems that traditional financial service providers (particularly banks) are struggling to catch up. Well, over the years banks have had the opportunity to change this sector. But so far they have been reluctant and sluggish due to competition from fintech companies. But how can these banks catch up and end up making a profit? This is the main topic of discussion in a recent report from CR2, a Dublin-based banking software company.

According to a report titled “Africa's Fintech Transformation: Traditional Banks Can Still Profit,” fintech acquisitions in Africa are driven by gains from mobile internet penetration and earnings from foreign venture capitalists.

Apparently, investor interest in African fintech was fueled by the success of M-Pesa in Kenya, which, although not backed by venture capital funds, has become a compelling argument for the viability and scalability of the continent's financial technology.

To this end, foreign investors flock to the continent, bringing with them billions of dollars over the years, most of which goes to new fintech companies. Like Chipper Cash, Paystack, and other well-known fintech companies are now running banks for their money. And thanks to partnerships with some of the world's leading financial players such as Visa and PayPal, the momentum supporting African fintech companies continues to grow.

However, this does not mean that African banks are completely powerless against the revolution. Not all. As noted in the new CR2 report, some of the continent's largest banks went crazy from the start and have since started upgrading their "old infrastructure" while building new ones to compete by offering their customers new digital products and services. Offer services. Some have even partnered with fintech companies to launch online wallets and other payment services to reach more customers without banking. But they could do more.

As an innovation partner selling technology to more than 100 banks in Africa, CR2 recommends the following for African banks to be at the forefront of facing the digital revolution in Africa's financial sector:

African banks should consider providing a seamless digital experience to their customers.

They should consider offering their customers a variety of daily payment options, including innovative wire transfers and lifestyle banking.

African banks definitely need to expand their services to the non-bank market segment.

They have to work on smartphones and USSD to expand access to parts of the African population with and without Wi-Fi and cell phones. However, to be honest, BI Africa notes that many banks have already done this. However, their service is often poor. Therefore, they need to consider upgrading their internet and USSD services.

In addition, banks in Africa will have to turn to ATMs to continue to offer cash access in addition to online payment options.

You should choose a digital banking platform provider that supports Open API banking.

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