Fintech beyond mobile money: what's next

Mobile money rails solved a genuinely hard problem: moving small amounts of money cheaply and reliably to people without traditional bank accounts. That achievement is now the foundation for a second wave of fintech companies trying to solve adjacent, arguably harder problems.

Credit is the obvious next layer

Transaction history from mobile money and merchant payments is increasingly being used as the underwriting data for short-term consumer and small-business credit, replacing the collateral and formal credit history that traditional lenders required. The companies succeeding here tend to combine strong underwriting discipline with distribution partnerships rather than competing purely on technology.

Cross-border settlement remains unsolved

Moving money within a single market has improved enormously; moving it between African markets, or between Africa and the rest of the world, remains slower and more expensive than most operators would like. This is where we see the most interesting current activity, and the most regulatory complexity.

Members from our technology sector group contribute these briefings based on direct experience building or investing in fintech businesses across the continent.