Africa’s fortune might change in the near future even though it’s facing many challenges, including the recent COVID-19 world pandemic, but we are optimistic that we will overcome it. For hundreds of years Africa has been dismissed by the rest of the word. It was perceived as a dark continent due to colonialism and general ignorance. Today, it is too big to be ignored. It has a population that is growing faster than any other continent. Its vast untapped population is slowly coming online, increasing the demand for smartphones, cloud computing services and mobile payments markets.

Currently, it has a large pool of qualified people to fill in positions in the continent. A good number of its citizens are now equipped with job skills that enables them to be competitive with the rest of the world. The end result is qualified workers who are able to access opportunities that present themselves.

Africa has become a global leader in mobile money transfer services. FinTech may carry significant gains for financial inclusion and deepening by improving the level of efficiency in the financial sector. Fintech provides avenues to extend access to credit as technology helps overcome information barriers and lower costs of transfer across border.

Cloud computing is finding its way to day-to-day activities, enabling businesses to be smarter and more data driven. However, the current technology is still facing challenges such as scalability and consumption of energy. Further distributed ledger technologies could enhance efficiency, security and transparency of payment systems. There is need to balance the trade-off between the benefits Fintech may generate and the potential added risks and vulnerabilities.

Sub-Saharan Africa has become the global leader in mobile money transfer services, spurring widespread access to financial services. Although sub-saharan Africa has lagged behind the rest of the world in access to finance, some countries in the region are now global leaders. There is a wide degree of differences across the region, with East Africa leading in mobile money adoption and usage. Built on an appropriate pricing strategy to attract customers, suitable regulation, and a reliable and trustful network, Kenya represents today one of the most successful cases regarding the use of mobile money.

Given the lower levels of financial inclusion, bank competition and micro financial linkages in sub-Saharan Africa, relative to other regions, regulators and Central banks could potentially benefit from considering FinTech as an opportunity to foster inclusive economic growth and development.

Favorable Policy measures are needed to reap the potential benefits of FinTech while managing associated risks. First the policymakers need to fill the existing large infrastructure gap in the region, starting with electricity and internet, secondly the policymakers need to look beyond the effect of FinTech in just financial sector but consider the impact on employment and productivity, digital economy and most importantly the scope of the much needed structural transformation. The traditional banking model was relying heavily on customers visiting their branches in order to transact, but this is now a thing of the past.

Vinestalk Kenya has a model tailored to meet the customers’ needs and we have a web based link Vinestalk Loans Portal , in which the customer can apply our loan products conveniently at the comfort of their homes. Moreover, we make sure our customers are well taken care of and any difficulties in accessing our products are addressed with our very much qualified personnel. Mobile money transactions will continue to lead the way here in Kenyan economy, since it contributes to up to 47% of Kenya’s GDP. Not only has it helped to curb poverty and boost economic growth but also it has helped the country move towards different technological means to generate greater economic growth and development.

Our role as Vinestalk Kenya is financial inclusion for all. There is undoubtedly reason to be positive about the boom of Fintech in Kenya and Africa as a whole. Fintech represents a disruptive competitive force that will have a major role in shaping the structure of the financial industry. Fintech basically affects the market structure by:

1.Reducing the costs of financial services

2.Creating market accessibility

3.Broaden the competition among existing incumbents

Access to credit could also be extended through technologies that overcome information barriers. The cost of credit risk assessment remains high in Africa. Small and medium enterprises cite access to finance as a major challenge. The remarkable penetration of mobile money in Africa and the potential of this technology to evolve into widely used transaction in medium is raising concerns about its effects on monetary policy implementation.

There is much uncertainty around the ultimate impact of financial technology (FinTech) and policymakers in sub-Saharan Africa as in other regions of the world. At times, the speed of adoption of technology will be even faster in the region, as in the case of the rapid growth of mobile payments. Efficiency considerations include choices regarding competition and coordination (as in the case of whether to push for interoperability), the likely impact on business models and profitability, and cost and inclusion issues.

The FinTech sector is evolving rapidly in sub-Saharan Africa, and it is challenging for regulators to identify, measure, and manage the associated risks. However, regulators should be flexible enough not to stifle innovation but at the same time ensure that their objective to maintain macroeconomic and financial stability and financial integrity is not compromised.

Our role as Vinestalk Kenya

To reiterate, our role as Vinestalk Kenya is financial inclusion for all. And true to this, we want to make sure the unbanked can get access to our financial services and financial literacy resources. Our vision is to create a movement of individuals and institutions, promoting and enabling widespread, well informed and responsible finance that is beneficial to all.

So we need your help in starting this movement. Yes, the rise in Fintech has a tremendous impact in our continent. If used wisely, credit can be a wealth creation tool, which has a potential to lift people out of poverty, create jobs and reduce inequality.

Join us as Vinestalk so that we can turn financial illiteracy into powerful knowledge and negative credit listings into positive listings. And In doing so, create healthy marketplaces that serve not only the lenders and borrowers but also the society as a whole.