Financial Service Providers (FSPs) have the potential to unlock incredible value in the African market. With the potential to give millions of people access to affordable financial services, Africa presents an incredible opportunity for FSPs to thrive.
Africa, The Land of Opportunity
It’s estimated that roughly 57% of the Sub-Saharan African population remain unbanked, with close to 30% still lacking any form of identification. Mobile penetration and internet connectivity in Africa, however, is on the rise with the potential to revolutionise the financial services industry in Africa.
Mobile money has been thriving in Africa. The continent boasts some of the highest levels of mobile money usage in the world. Mobile money services provide access to cheaper financial services. This is especially important in the African context considering the number of unbanked people. Over the past few years, there has been a massive increase in apps that allow consumers to cost effectively exchange money and make payments via their mobile devices.
According to a recent report by The World Bank, mobile money services, which enable users to store and transfer funds through a mobile phone, can help improve people’s earning potential, therefore, reducing poverty.
How FSPs Can Develop Products for the African Market
FSPs have a unique opportunity to develop bespoke products to cater for specific needs in the African market. Things like micro-investment, P2P lending, low cost payments and zero-fee banking are all relatively new concepts for the African Market and have the potential to bring about incredible opportunities for FSPs. Further, Africa’s population is set to increase by 25% over the next 10 years. This will no doubt present further opportunities.
“Africa has always had a special place in our hearts, as this is where our roots are. We’re adamant about the potential in Africa and we know there is vast potential just waiting to be unlocked. Traderoot’s unique products can help FSPs unlock this potential, while keeping overheads relatively low,” says Traderoot Director, Brett Dungan.
Opportunity for Mobile Network Operators (MNOs)
There’s also a great opportunity for Mobile Network Operators (MNOs), who already have widespread distribution. MNOs can leverage Traderoot’s various white label products to offer financial services such as credit, banking and more to their existing client base. This comes at a fraction of the cost of developing the same or similar products in-house.
Based on our scalable and modular technology, Traderoot can offer customised and comprehensive solutions to a variety of clients in various regions, leading to multiple expansion possibilities not only in Africa, but across the globe.
Traderoot has helped many reputable clients develop and expand their commerce capabilities. We have an inherent advantage over international and smaller local competitors through our strong track record. Traderoot is a recognised brand across Africa’s SADC region, and through success stories with major African institutions across the continent.