In recent years, Africa has emerged as one of the epicentres of fintech in general, attracting more investment than any other sector on the continent. This is understandable given that 66 percent of Sub-Saharan Africa (SSA) is unbanked. To meet the growing demand for financial services, these new innovative financial companies have proliferated far and wide.

According to the United Nations, Africa will account for more than half of global population growth until 2050, owing to the continent’s fastest growing population. While nearly 65 percent of the population is under the age of 35, this is a key demographic that is more tech-savvy than others. Fintech in Africa is a burgeoning industry with numerous opportunities, particularly in Nigeria, Egypt, South Africa, and Kenya.

The rise of Fintech not only increases access to financial services, but it also alters the competitive landscape by catalysing innovation in other industries ranging from agriculture and retail to transportation and insurance. African fintech startups raised a total of $678.73 million in funding in 2019, according to a WeeTracker report.

African fintech firms demonstrate that necessity is the mother of invention; one such example is the Kenyan company M-Pesa, which saw massive demand from people who did not have access to traditional banks and disrupted traditional financial services with mobile technology, capturing a previously untapped market.

The company was hugely successful, providing more than 41 million people with financial inclusion as well as a safe and affordable way to send and receive money, top up airtime, pay bills, get paid, and even get short-term loans.

M-Pesa is one of many success stories that have shook the financial world. According to an International Monetary Fund (IMF) report, these fintech businesses are challenging traditional structures and creating efficiency gains by making financial services available to the masses.

Africa has over 400 FinTech companies that enable payments, fund transfers, loans, and even wealth management. Nigeria, Kenya, and South Africa are the continent’s main FinTech hubs, accounting for the greatest proportion of fintech companies and attracting the greatest share of investment.

African fintech companies were able to weather the pandemic’s year-long storm, as they became the primary financial services that people relied on when they were locked down, strengthening their market position. The pandemic has served as a catalyst to demonstrate that this industry is the future of Africa’s financial sector, with no signs of abating anytime soon. With this new market position, they will be able to establish and follow the industry’s latest financial trends.

And from the performances and trends we have noticed, we have been able to come up with our Digital Banker Africa Fintech 50 for 2022.