FinTech in Sub-Saharan African Countries: A Game Changer?
Departmental Papers, February 14, 2019
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Bibliographic details
- Authors: Amadou N Sy, Rodolfo Maino, Alexander Massara, Hector Perez-Saiz, Preya Sharma
- Published: February 14, 2019
- Series: Departmental Papers
- DOI: https://doi.org/10.5089/9781484385661.087
Summary
- FinTech is a major force shaping the structure of the financial industry in sub-Saharan Africa.
- New technologies are being developed and implemented in sub-Saharan Africa with the potential to change the competitive landscape in the financial industry.
- FinTech challenges traditional structures and creates efficiency gains by opening up the financial services value chain.
- FinTech raises concerns about the emergence of vulnerabilities.
- FinTech is emerging as a technological enabler in the region, improving financial inclusion and serving as a catalyst for innovations in other sectors, such as agriculture and infrastructure.
Key findings and themes
- Competitive landscape:
- New technologies have the potential to change market structure and market share in the financial industry.
- Efficiency and structure:
- FinTech creates efficiency gains by opening up the financial services value chain.
- Financial inclusion and cross-sector impact:
- FinTech improves financial inclusion and catalyzes innovations in agriculture and infrastructure.
- Risks and vulnerabilities:
- The emergence of FinTech raises concerns about potential vulnerabilities that need monitoring and mitigation.
Policy implications and considerations
- Monitor and address emerging vulnerabilities associated with FinTech developments.
- Leverage FinTech as a tool to expand financial inclusion across sub-Saharan Africa.
- Encourage deployment of FinTech solutions that generate efficiency gains across the financial services value chain.
- Consider cross-sector opportunities where FinTech can catalyze innovations in agriculture and infrastructure.
Subjects and keywords
- Subjects: Banking, Blockchain and DLT, Financial services, Fintech, Mobile banking, Technological innovation, Technology
- Keywords: account penetration, Africa, agents in sub-Saharan Africa, anchors inflation, benefits of FinTech, Blockchain and DLT, DP, DPPP, East Africa, efficiency gain, Fintech, FinTech in Sub-Saharan Africa, Global, IMF Library, market share, market structure, Mobile banking, monetary policy, money multiplier, money transfer operator, payment system provider, Sub-Saharan Africa, sub-Saharan Africa country, sub-Saharan Africa relative, technical efficiency, Technological innovation, trade-offs FinTech
Source: Departmental Papers — "FinTech in Sub-Saharan African Countries: A Game Changer?", Amadou N Sy et al., February 14, 2019, Departmental Paper No. 2019/004.