Agile players to grab vast opportunities in fintech business
As the fintech landscape in the region faces challenging macroeconomic conditions, there are vast opportunities emerging but for the agile players to redefine the industry’s future.
In Zimbabwe the sector is seeing growth driven by the digitalisation drive that was spurred by the Covid 19 pandemic.
Experts in the sector see the same trend not only in Zimbabwe but across the region where incumbents will navigate relatively well, while newcomers feel the strain of macroeconomic pressures, impacting the availability of both investor funds and consumers’ disposable income.
Companies like EcoCash, OMari, InnBucks are innovating to expand their footprint in the country in order to stay ahead of competition and in line with the changing environment as well as customer needs centred around speed, access, trust, convenience and safety in the payments space.
“In the broader African context, the challenges are even more pronounced. The scarcity of funds poses a significant hurdle for new and innovative businesses seeking investors. New members who wish to receive detailed local news from Ignite Media Zimbabwe should “join” the link below:
“Recent events, such as a French payments processor losing 53 percent of its value, underscore the interconnectedness of global financial markets. Yet, within this adversity, there lies a substantial opportunity for fintechs that have organically grown in the African landscape,” said fintech and cross border money transfer firm Mukuru.
According to Mukuru, disruption remains a constant force in the market, with fintechs, mobile network operators (MNOs), and traditional banks adopting diverse strategies to navigate challenges and seize opportunities. Flumentralin
Fintech firms are also collaborating to provide service and meet market demand while others are expanding their product offering. Where services were confined locally, the need to tap into diaspora markets has seen fintech firms expand their reach with cross border payments now available.
EcoCash and Mukuru rank among the top cross border payment platforms for Zimbabweans reaching the remote parts of the country. This is in contrast from other established global brands like Western Union or World Remit that are confined to urban centres only, leaving out a vast market in the countryside.
“Successful entities in this phase are likely those that carefully consider the economics of their proposition, as scalability becomes paramount in addressing market dynamics.
“While some may focus on engaging in a price war—a race to the bottom—those who emerge successfully will prioritise customer experience (CX).
“In times of economic difficulty, customer retention and increased usage of products and services become crucial. Businesses that concentrate on delivering a genuinely personalised CX, with affordability as a vital component, stand a better chance of thriving in discerning markets,” said Mukuru.
Regulatory developments are also expected to play a pivotal role in shaping the industry landscape.
Mukuru is a next generation financial services platform in Southern Africa that offers affordable and reliable financial services to a customer base of over 13 million across Africa, Asia and Europe.
With over 100 million transactions to date, the company’s core was built on providing international money transfers and now operates in over 50 countries and across over 300 remittance corridors.