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Why should FinTech actually matter to you?

Why should FinTech actually matter to you?



The world of technology has many dimensions. It’s ever changing and inter connected properties mean we are constantly being flooded with the new apps, machines and gadgets. Further still, our pocket dictionary is no way near enough to keep up words like ‘FinTech’ and the latest jargon alike.


Financial Technology or ‘FinTech’ is one of the fastest growing areas for venture capitalists across the globe. In 2015, global investment in FinTech amounted to $12 billion. Long gone are the traditional offline days of financial services. Computer systems and other technology are now a necessity in the banking world. Since the turn of the century, the internet revolution has fuelled innovation in the financial sector. Furthermore, it has even facilitated the development of crypto-currencies such as bitcoin.


However, it appears that only clued up and tech savvy entrepreneurs are the ones that really grasp the concept. Yet, calling it a buzzword would be somewhat an injustice. The industry’s impact is rapidly changing the way we live. On a universal level, FinTech is impacting sectors such as mobile payments, money transfers, loans, fundraising and even asset management.

It is widely predicted the rise of FinTech will shape the way that businesses, and even cities, are run. We have outlined a set of ways that it will impact your company in today’s modern world.


Long gone are the days of lengthy investor talks in the world of FinTech. Thanks to the shop-window that is now the internet, entrepreneurs can pitch their ideas directly to the world. This is all enabled by the fact that money can be transferred easily at the touch of a button. As a result, funds can be allocated towards the next big thing straight away.

Global Money Transfers

Money can now be sent across borders where small firms and individuals can conduct mobile payments far cheaper than any traditional method. For this reason, companies can scale from local to international faster than ever before, at the fraction of the price.

Disruption in Africa

Accenture estimates that over one-third of mainstream financial services’ revenue is at risk due to disruption in the industry from FinTech. Developing economies such as Africa are extremely fertile ground for its introduction. Due to the high smartphone penetration but lack of bank account ownership, FinTech has significantly lowered the barriers to entry for consumers. This is courtesy of playing a development role and helping to reduce financial exclusion.

Rise of FinTech-preneurs

There are an abundance of success stories with regards to FinTech Start-ups across the continent. Ultimately, companies have managed to gain the trust of consumers, and construct a simple experience which allows users to transact, borrow, save and invest. Check out our sister article on the Top 5 FinTech companies in Africa for more info.

It is fair to say that if FinTech hasn’t already, it is set to change the lives of businesses, consumers and economies alike. If you enjoyed this article, check out our others using the FinTech tag.


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