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Case study: Orange Money, story of a success in Africa

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Orange Money, Orange’s mobile money solution, celebrates a decade of financial innovation in Africa and confirms its position as a major mobile money player.

Launched initially in Côte d’Ivoire in 2008, the service now has 40 million customers and is available in 17 countries, reaching €26 billion in transactions in 2017, and making it one of Orange’s leading growth drivers.

Mastering the basics of mobile payment

The success of this mobile payment solution for unbanked is based on the accessible, universal nature of the service, which makes it possible for millions of people to perform instant, secure and reliable financial transactions using their mobile phone. In some countries, the service gives close to 50% of users access to banking services in areas with low levels of bank usage.

Over the past decade, Orange Money also added new services like international transfers, bill payment, and wage payment services. A good exemple is the “Bank to Wallet” service launched in 2015, to enable transfers between bank accounts and Orange Money accounts.

According to Alioune Ndiaye, CEO of Orange Middle East and Africa (OMEA):

“Orange Money makes real contributions to economic and social development in Africa and is a part of our strategy as a multiservice operator and digital transformation partner in Africa and the Middle East”.

Orange Money’s success is also due to its efforts to collaborate with regulators such as the Central Bank in seven African countries or the Abidjan-based CECOM to comply with mobile money activities and thus launch new services more rapidly.

Expanding to new services

Orange is now expanding its product range with lending and savings services available directly by mobile phone. These services, which are available through partners, are already offered to Orange customers in Mali and Madagascar since early 2018 as part of the initial launch.

International transfers, another strong area of development for Orange Money, aim to strengthen ties between people living outside their home countries and their loved ones.

Finally, as smartphones become increasingly widespread and uses change rapidly, the Orange Money services are evolving with the development of an application for easier interactions and transactions.


 

African Fintech Mapping Week #8: LipaPlus, WayaWaya, Mookh and M-Changa

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Every week, Techfoliance highlights four promising Fintech start-ups across Africa in various verticals: Digital Banking, Payments, InsurTech or Investment. In this weekly FinTech mapping we have LipaPlus, WayaWaya, Mookh and M-Changa.

[divider]Fintech Mapping[/divider]

LipaPlus

LipaPlus is a Kenya-based Fintech that was launched by Kenswipe and that developed a mobile POS terminal which enables merchants to receive card payments directly on their mobile phones.

Discover here: https://www.lipaplus.com/

WayaWaya

WayaWaya is a Kenya-based FinTech that has developed a portfolio of solutions to enable users to send and receive money instantaneously, securely from and to their local accounts (Mobile Wallet, Card or Cardless ATM withdrawals). It also enables merchants to accept card payments using Token, QR and NFC requirements.

Discover here: http://wayawaya.co.ke/

Mookh

Mookh is a Kenya-based Fintech that has developed a multi-channel payment gateway that allows merchants to sell products, tickets, digital content and collect donations from their social media pages.

Discover here: https://mookh.com/

M-Changa

M-Changa is a Kenya-based Fintech that allows people to manage a fundraiser right from their mobile phone. From collecting payments via Mobile Money and Credit Card channels, to inviting anyone globally to support their cause, M-Changa helps people Changa faster, smarter, with less stress.

Discover here: http://changa.co.ke/


 

ALAT, the digital-only bank by Nigeria-based Wema bank

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Nigerian bank Wema announced the launch of a fully functional digital bank called ALAT to address the challenges of financial inclusion in the region.

With ALAT, customers can now do all their banking transactions without being physically present at a bank, avoiding long waiting time at ATMs and switching paperwork hassle.

ALAT by Wema bank

Among available features, clients can open an account directly from their phone with their BVN and phone number, convert naira to dollars and pay online with a virtual card, get short-term loans, create savings plan automatically and even get discounts from local partners.

In a recent interview delivered to World Finance, Ademola Adebise, Deputy Managing Director at Wema bank said:

“As the convergence unfolds at Wema Bank, a far-reaching strategy for transforming the entirety of the Nigerian banking experience is slowly crystallising”.

The success of ALAT’s digital offering is here with a continuing growth in the number of monthly active users, especially among millennials. In just one year, the bank has acquired more than 250,000 customers who deposited more than NGN 1.6bn ($4.48m).

As explained by Ademola:

“The evolution of Wema Bank from simply the oldest indigenous bank in Nigeria into a nimble financial institution with its own fintech spinoff is well underway, and it is quite a sight to behold. We believe that our work now will come to shape the future of the entire Nigerian banking industry.”


See also: Standard Chartered unveils first digital-only bank in Ivory Coast

Binkabi to pilot tokenized commodity trading in Nigeria

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Binkabi, a blockchain-based commodity trading network, is coming to Lagos on July 5th for a meetup at Zone Tech Park that will teach participants how to make money by trading commodity-backed tokens.

Binkabi’s CEO Quan Le and Chief Economist Dr. Andrew S. Nevin will discuss how to turn real commodities into blockchain tokens and how to employ profitable trading strategies.

At the meetup they will also announce their Emerging Commodity Trader Programme, which is a pilot for Binkabi’s Commodity Tokenisation Protocol. This pilot will involve real users, real commodities and real monies. This is in connection with the eventual set up of a commodities exchange focusing on agriculture (soft) commodities, in partnership with an agribusiness conglomerate in Nigeria.

Binkabi Team

As part of this exercise, Binkabi will tokenise grains like maize, paddy rice, and soybean and have them traded on BinkabiDEX, Binkabi’s decentralised exchange. The commodity-backed tokens will then be redeemed for commodities from accredited warehouses. The pilot will also seek to confirm the unique role of BKBi, the Binkabi token, in creating liquidity that underpins the success of commodity marketplaces.

Participants, known as Emerging Commodity Traders, will trade these tokens and be awarded bounties for successful trading strategies. In doing so they will become the first traders of tokenized agriculture commodities in the world, and by extension will help shape a new technology designed to return more profits to African farmers through removing frictions and middlemen, unlocking liquidity, and reducing FX conversion costs.

From a crypto investment universe’s point of view these commodity-backed tokens will be an ideal inclusion in crypto portfolios. This is because they are backed by some of the world’s most traded resources and are not correlated to movements in the rest of the crypto space.

Dr. Andrew S. Nevin | Binkabi

​This marks a major development for Africa, where a number of countries have tried but largely failed to set up these commodities exchanges. Working with Binkabi, these commodity exchange initiatives can tap into cutting-edge technology and a common liquidity pool. The costs of setting up and operating a commodity exchange will be reduced while its chance of success will increase due to ready liquidity.

Binkabi’s vision is to improve the lives of farmers in emerging markets by using blockchain technology to create a fairer and more profitable commodity trading network.  Their meetup on July 5 will be from 5:30-8:30pm at the Zone Tech Park, Gbagada Industrial Scheme in Lagos.


Sign up now to reserve your seat

(The event is free)


 

Standard Chartered unveils first digital-only bank in Ivory Coast

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A man walks past a logo of the Standard Chartered Kenya bank in their main office in Nairobi, Kenya September 29, 2017. Picture taken September 29, 2017. REUTERS/Baz Ratner

Standard Chartered is actively contributing to better serve the unbanked, especially in Ivory Coast where it recently launched the first digital-only bank.

The potential of Africa in the banking industry is endless, with high mobile penetration rate that can today balance the very low branch rate, averaging only five branches per 100,000 adults.

With the new digital bank, Standard Chartered’s Ivorian customers can open an account in less than 15 minutes and manage all their banking activities at a click of a button.

According to Sunil Kaushal, Standard Chartered’s Regional CEO, Africa and Middle East:

“We have been steadily investing in expanding our footprint in Africa over the years, and this will continue to be a priority moving forward. Digitising Africa remains at the heart of our business strategy for the region”.

Along Standard Chartered, many banks are moving forward to integrate digital banking at the core of their growth startegy on the continent, such as Lloyds, Kenyan lender CBA’s M-Shwari or Togo-based Ecobank.

In a recent study published by consulting firm McKinsey, the number of Africans with bank accounts grew from 170 million in 2012 to nearly 300 million last year, and could rise to 450 million in the next five years. The same report shows that 40% of all African banking customers preferred digital channels for transactions.


This article was first published in Reuters

FinTech start-ups allow Nigerian SMBs accept payments online

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Disadvantages for African small businesses (SMBs) are very often the numerous obstacles they face to enter the market, from simple tasks like registering a business to more vital issues such as accessing credit. Nigeria is no exception, and many tech companies are trying to change that.

One challenge that some Nigerian tech start-ups are trying to tackle is to let SMBs receive online payments. Konga and Jumia are good examples of e-commerce platforms which created new models for merchants to accept payments online.

Another example is Paystack, a Lagos-based FinTech that has developed a modern infrastructure to let Nigerian businesses accept Mastercard, Visa and Verve cards from anyone, anywhere in the world. The start-up is simplifying drastically the process by just verifying phone numbers through Truecaller’s verification system, checking personal bank details and national ID.

In a recent study, IMF showed that cash is still king in Nigeria, with the informal sector representing up to 65% of the economy:

“The informal sector provides employment and income to many people who might otherwise be unemployed in the absence of sufficient opportunities in the formal sector”.

Another company called VoguePay also contribute to allow SMBs accept payments online. In a recent interview delivered to Quartz, Wole Ogunlade, Head of digital strategy at VoguePay, said:

“We are deliberate about letting users understand the benefit of having registered businesses”.

The Nigerian government is encouraging businesses to be fully registered. To do so, it has set a limit on the number of bank cards that can be accepted on the platforms like VoguePay and Paystack.


This article was first published on Quartz

Mapping Fintech Egypt 2018

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Building on insights gathered through discussions with various digital finance providers in Egypt, this report will give you access to the most up-to-date mapping of Fintech players in Egypt.

The report will also provide you with an historical look at the way digital finance is ‘reversing the pyramid’ to financially include the poor in one of the world’s oldest societies.


DATA PROVIDED BY INVYO ANALYTICS

Access your own dashboard now


The most complete Egyptian Fintech mapping

Download PDF

The report provides a detailed overview of 40+ players in the Egypt’s Fintech sector, ranging from Fintech start-ups, Banks, MNOs, Universities, Investors, Accelerators to Microfinance institutions and Regulators.

You will receive market trends from the best local professionals and entrepreneurs in Fintech in Egypt.

The report is brought to you in partnership with Chloé Gueguen, a Fintech specialist and a relentless advocate of leveraging advances in digital and mobile technology to create meaningful financial solutions for low-income people.

Key takeaways

? In Egypt, 52% of the population is below 25 years old and 86% of them still have no access to formal financial services ;

? The country accounts only 8-9 million mobile money accounts and cash remains king ;

? The Egyptian Fintech ‘history’ started roughly 10 years ago, with the inception of Fawry in 2007 ;

? In March 2010, the Central Bank of Egypt (CBE) issued regulations on mobile payments and transfers and allowed banks to issue electronic money units ;


>> Access the report and the mapping by following this link


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African Fintech Mapping Week #7: Branch, Fincheck, Mangwee and MobiPay

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Every week, Techfoliance highlights four promising Fintech start-ups across Africa in various verticals: Digital Banking, Payments, InsurTech or Investment. In this weekly FinTech mapping we have Branch, Fincheck, Mangwee and MobiPay.

[divider]Fintech Mapping[/divider]

Branch

Branch is a Kenya-based Fintech that makes it easy for people to access credit anytime and anywhere. The process is very simple since the user can complete the application in seconds and then receive a loan straight to their account. The solution is available in Kenya, Tanzania and Nigeria.

Discover here: https://branch.co/

Fincheck

Fincheck is an South African based FinTech that has developed a financial comparisons website that organises information to assist the borrower in making their best financial decision. Fincheck gathers information from numerous banking partners and presents it to the borrower in a simple, understandable way.

Discover here: https://fincheck.co.za/

Mangwee

Mangwee is a Zambia-based Fintech that has is building country’s first affordable peer to peer mobile money platform, and have a vision that no one should be excluded from the financial system.

Discover here: https://www.mangwee.com/

MobiPay

MobiPay is a Namibia-based Fintech that describes itself as a service provider in various African countries for mobile wallets, card issuing and acquiring, cardless transactions as well as Value Added Services (VAS).

Discover here: https://www.mobipay.com.na/


 

Kenya is the place to work in Fintech in Africa, here is why!

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According to recent studies, Kenya is the country in Africa where Fintech start-ups are paying the highest salaries to their workers.

The Digital Frontiers Institute (DFI) surveyed executives and senior managers working in Fintech companies in Kenya, and discovered that on average they were earning respectively $238,509 and $137,303 per year.

There are various reasons that can explain such rates. The first one is obviously due to the vibrant ecosystem in Kenya that is hosting some of the most successful Fintech companies on the continent. This contributed to attract highly skilled employees to support high growth businesses.

The problem is that Africa is suffering from a talent shortage, especially in jobs that require specific skills such as the ones in financial technologies:

Study shows that 50% of companies are concerned by the shortage of skilled workers. As a consequence, wages are growing significantly to be able to hire and retain the right workers.

Following Kenya, the countries in Africa with the most attractive rates on salaries are in order Nigeria, Tanzania and South Africa.


This article was first published in Business Daily

 

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