Hailed by the World Bank, Africa’s financial services sector has been a key factor in the continent’s growth, due to a boost in insurance products which have enabled local businesses to grow. Also, with new banking facilities, the benefits go to not only the local population in terms of customer protection, but it also benefits the continent with more international investors. These investments frequently happen in African private equity firms due to the facility of financial inclusions, which provide an ease of access to basic financial services. These financial inclusions help to promote financial health and financial security as well as sustainable growth.
Is technology transforming African Financial services?
Innovation is key for Africa to evolve. Since technology appeared on the continent, progress can be analyzed via Africa’s economic growth. Regarding financial services, huge progress has also been made. The now-available facilities have lead to a more promising way of dealing with financial inclusions. More Africans now have access to bank accounts and digital financial services.
The mobile banking revolution has completely changed the face of African financial services, particularly in Kenya, which leads the market. Mobile banking provides financial convenience to the locals. M-PESA is the most common financial app in Kenya. Mobile phones were spread faster than bank branches. Since 2012, Kenya’s mobile banking transactions have equalled to nearly 60% of the country’s GDP, according to recent studies from various telecommunication companies.
Benefits of mobile payments
- Brings new customers
- Low costs
Africa HR Solutions is active in the banking and finance industry and is the leading African employment expert. As Employer of Record, Africa HR Solutions Ltd has become a major player in the African market regarding Professional Employment Outsourcing (PEO), payroll and compliance.
"the financial services sector has been a key factor in the continent’s growth"