Cashless Banking in Africa: How we’re creating payment solutions with technology and innovation
African economies are well positioned to benefit from rapidly accelerating technological change if they can harness the current open landscape for innovation. East Africa is already a global leader in mobile payments, while mobile money accounts in sub-Saharan Africa are on an upward charge. Apart from being able to leapfrog the limitations and costs of physical infrastructure, the continent stands to benefit from having the youngest, tech-savvy workforce in the world in the next decade. Africa’s working age population is expected to grow by 450 million people by 2035. According to the World Bank and the continent is projected to have the largest working population of 1.1 billion by 2034, notes the World Economic Forum on Africa. Recent GSMA data shows that mobile money accounts in sub-Saharan Africa are up 18.4% between 2016-17 to 33.8m registered accounts. [bctt tweet=”Banking in a cashless society will require African solutions for African problems – @nnamdi_oranye” username=”SheLeadsAfrica”] However, we cannot wait 12-15 years before adequate job creating initiatives and policies are unlocked. The answer lies in harnessing the power of the digital economy today to create African solutions for African problems. An important part of this will require promoting and partnering with African innovators to unlock sustainable growth. We are already witnessing the significant potential of digital innovation in the remittance and mobile wallet space. Penetration of smartphones is expected to hit at least the 50% mark in 2020 from only 2% in 2010, according to the World Economic Forum, offering the continent a clean canvas for tech-based innovation. It is an opportunity we must not miss. These are exciting times and are forcing us to think differently to come up with true Pan African innovation and development. MFS Africa is a good example of how carefully harnessed and supported technological innovation can have ripple effects through the continent. It now operates the largest digital payments network in Africa and connects over 170m mobile wallets through 100+ partners, including Airtel, Ecobank, MTN, Orange and Vodafone across 55 markets. It has about 15% of the African population connected to a platform. M-Pesa, launched in Kenya in 2007, is an often-touted example of African technology making waves even outside its own borders. After capturing the local market for cash transfers it has spread to three continents and 10 countries. MicroEnsure, meanwhile continues on the path of developing pioneering insurance solutions for low-income people like micro-health, crop, and mobile insurance. These are solutions directly aimed at emerging customers and it is little surprise the company continues new customers by cleverly partnering with telcos. Access.mobile is another major success story, testing and growing its health innovation offerings for seven years in East Africa. The company works with health systems to hone their communications with patients in lower-income but also in growing areas and it hopped the pond in the opposite direction from most smaller startups and landed one of its first American clients. [bctt tweet=”Standard Bank, as Africa’s largest bank by assets, hopes to support even more start-up and tech initiatives across the continent” username=”SheLeadsAfrica”] Adventist Health White Memorial Hospital, a Los Angeles facility that works largely with lower-income Hispanics, was looking for ways to use health data to achieve better outcomes within its population. These are examples of the role models that will inspire our next generation of innovators. We need more and tech-savvy banks to need to continue supporting them as they grasp future opportunities. Just consider that Findex data shows that sub-Saharan Africa is home to all eight economies where 20 percent or more of adults use only a mobile money account: Burkina Faso, Côte d’Ivoire, Gabon, Kenya, Senegal, Tanzania, Uganda, and Zimbabwe. Opportunities, therefore, abound to increase account ownership up to 95 million unbanked adults in the region receive cash payments for agricultural products, and roughly 65 million save using semiformal methods. Standard Bank, as Africa’s largest bank by assets, hopes to support even more start-up and tech initiatives across the continent to ensure these opportunities are not lost. [bctt tweet=”We are setting a new standard in digital payments with the launch of Africa’s first prepaid virtual cards ecosystem, among many other digital innovations – @nnamdi_oranye” username=”SheLeadsAfrica”] We are therefore innovating ourselves at a rapid pace to harness the benefits of the digital age to drive financial services inclusion. Mobile payment solutions like Snapscan is now available at over 25,000 merchants and a vast user network across South Africa. We are setting a new standard in digital payments with the launch of Africa’s first prepaid virtual cards ecosystem, among many other digital innovations. The future will be about solving genuine customer problems rather than putting a band aid on them. One area in urgent need of change, for instance, is remittances, where Africa is still one of the costliest places in the world to remit payments – fees as high as 10% to 20% are still endured. We need to harness technology to genuinely solve this problem. Sometimes when we talk about banking in cashless society we look too far out – but we don’t have the luxury of time. Knowing your customer (KYC) is about understanding what they need today based on their culture and context and then unlocking the already available data to provide the solution. Technology, for instance, can solve the unbanked problem on the continent. However, this does not mean you can “plug and play” by taking something that works in one country and expecting it to work in another. Success will increasingly be centered on having a Pan African view of the problem, but local implementation. The future is certainly bright for Africa as exponential innovation continues to drive change across the continent we call home, disrupts industries and replace legacy technology. It is now time to grasp this opportunity with both hands before the innovation wave passes us by. Article By Nnamdi Oranye, Fintech Author and International Remittances Lead at Standard Bank Group. October 2018 Sponsored Post.
Ivy Barley: With coding, I can create a powerful software that can transform Africa and the world
Ivy Barley is a social entrepreneur and currently shaping a world where more African women will be daring enough to lead in in Science, Technology, Engineering and Maths (STEM) fields. She is the co-founder of Developers in Vogue, an organization that trains females in the latest technologies and connects them to real-time projects and jobs. In 2017, she was named as one the 50 Most Influential Young Ghanaians. Ivy is also a Global Shaper of the World Economic Forum and holds a Master’s Degree in Mathematical Statistics. Tell us about yourself Growing up, I always had a strong aptitude for Mathematics and Technology, and that has pretty much shaped my career path. I recently completed my MPhil. in Mathematical Statistics. I believe that I have the potential to make a significant impact in Africa, and this is enough motivation for my work at Developers in Vogue. Aside from being a selfie freak, I enjoy hanging out with my best friend (my phone). How did Dev in Vogue start? About a year ago, I was working at an all-girls pre-university where my role included assisting the girls with Mathematics, Statistics, and Physics. I also taught the girls programming. Before working in this school, I’d been hearing people say that women don’t like coding. However, I realized the contrary! The girls were very enthusiastic about coding, they also had so many great ideas! My stay in the school was cut short but all the while after that, what never left me were the memories of the girls! It dawned on me to start a sustainable initiative that will create the ideal environment for females to code, connect and collaborate. What has been your biggest hurdle so far? We pretty much didn’t have a lot of challenges getting our business off the ground. We’re glad we had support from interested stakeholders. A hurdle though is trying to create a community. One of our unique value propositions is that we don’t only match our ladies to jobs, but also creating a community of women who support each other. It definitely requires a lot of time and effort to create such a sisterhood. [bctt tweet=”Coding and generally technology has so much untapped potential in Africa – Ivy Barley @devinvogue” username=”SheLeadsAfrica”] Has there ever been a time when you thought of giving up? What kept you going? I think I have thoughts of giving up very often and I find that normal. I have however learned not to let my feelings dictate. If there is something that has to be done, I definitely need to do it and do it now! My life is governed by one mantra: Pay Now; Play Later. That is, I would rather sacrifice now so that I can have a better future. Most importantly, I start my day with the word of God and listen to a lot of inspirational podcasts especially from Joel Osteen and Terri Savelle Foy. What is your favorite thing about coding? I particularly like that with my laptop and internet, I can create powerful software that can transform Africa and the world at large. Coding teaches you critical thinking and problem-solving skills, which are very important skills for this era. I won’t deny that it doesn’t get difficult. When coding, you’d realize the power of a ‘simple’ semi-colon because omitting that can sometimes cause you hours of no sleep. Which season is the toughest for your job? How do you overcome this? For now, it has been keeping the community engaged. Though it has been fun doing this, it definitely needs more time investment. I’d like to call myself the cheerleader of the team, inspiring the ladies to dream big and work hard to make them happen. What however serves as motivation in spite of the challenges are the stories of the impact we are making in the lives of these women. What, in your opinion, is the future of coding especially for girls in Africa? Coding and generally technology has so much untapped potential in Africa. For females, the future is even brighter. Day in and day out there are so many opportunities that come up to promote women in technology. Relevant stakeholders are beginning to realize the gender gap in the tech ecosystem and are putting measures in place to bring more women into the room. What advice would you give to any girl in Africa considering coding? Keep at it, my girl! You need to work hard in order to stay relevant. You need to keep improving your skills. Though it may get difficult at some points, think about the big picture. Also, make time to network with people in the industry to learn best practices that can make you world-class. If coding is truly your passion, then you definitely need a lot of diligence and determination. In case you need some support with this, I’ll be glad to offer a helping hand! Any advice for African women entrepreneurs? I think one advice I’d always give to people is hard work. Also, have your visions and goals in writing and review them every single day. As women, there are so many activities that are likely to take our attention from growing our businesses. This is the more reason why we need to stay focused. Let’s do this for Africa! If you’d like to share your story with She Leads Africa, let us know more about you and your story here.