Having secured about $31 billion in funding in the third quarter of 2021 alone, the world’s more than 26 000 fintech companies have together pulled the industry out of the niche sector and into the mainstream, and Africa isn’t missing out on this growth. According to Dominique Collett, Rand Merchant Investment’s senior investment executive and head of AlphaCode, investment into the African fintech sector increased to about $2 billion in 2021, in comparison to $500 million in 2020.
A shift away from the rise of new digital banks can be expected, with new entrants instead looking to grow within a niche consumer base. “A few years ago, it was all about the challenger banks, such as Monzo and Revolut, which offered a better user experience,” says Collett.