Cusp Technologies has leveraged its past experiences with partners in Somalia and Kenya to highlight Africa's emergence as a surprising leader in banking. The continent has embraced mobile solutions, bridging the gap for millions previously underserved by traditional banks. Limited landline infrastructure prompted the adoption of mobile phones for financial services, exemplified by the growth of services like M-Pesa in Kenya, OPay in Nigeria, and Dahabshiil in Somalia, especially during the COVID-19 pandemic.
Statistics
Key statistics tell the story: 48% of Africa's population now accesses banking services, with Sub-Saharan Africa leading in mobile banking services, subscribers, and transactions globally. Nearly half of the world's mobile banking accounts are in Africa, with continuous growth outpacing other regions.
Growth in Digital Banking
Relaxed regulations have enabled mobile providers and neobanks to flourish, offering reduced costs and diverse services like investments and budgeting tools. Traditional banks are adapting to this new landscape, spurred by stiff competition from digital-only institutions.
Mobile banking and neobanks are driving greater financial inclusion in Africa, aligning with Cusp's objective of supporting initiatives with connectivity for underserved communities. The World Economic Forum's EDISON Alliance shares this goal, striving to connect millions to essential services, including finance.
Challenges
Despite the benefits, neobanks face challenges in Africa due to limited smartphone and internet access among a significant portion of the population. Additionally, data storage presents challenges, requiring secure and reliable IT infrastructure and connectivity.
Closing Thoughts
Cusp Technologies is committed to exploring hybrid models for data storage and upskilling regional banks to leverage global technology whilst meeting local compliance standards.
Reach out to us to learn how we can connect you and provide data storage solutions, both physical and cloud-based.
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