New Age Finances | Industry Outlook

New Age Finances

A Deep Dive into the Growth of FinTechs and Neobanks Across AfricaScreenwriter: Marcus Kaapa

Between 2007 and 2009, the world experienced the Great Recession, the worst financial crisis since the Great Depression that lasted a decade in the 1920s and 1930s.

The impacts of such a millennial period of stagnation and decline have been varied and far-reaching, with many workers in multiple sectors losing their jobs and businesses collapsing. In the financial sector itself, the loss paved the way for the development of FinTech and the first notions of alternative financial institutions, such as neobanks.
Neobanks, also known as “challenge banks”, operate exclusively online and eliminate the presence of physical branch networks, highlighting a new banking era.

It’s not hard to see why so many neobanks have since emerged. With the incredible boom in technological accessibility around the world, the digital age demands online products and services in all aspects of life, and with the explosive rise of e-commerce, online banking has become not only the norm, but also a need.

However, this necessity is not simply based on need. Careers and businesses are going digital and sacrificing physical assets for virtual realms, in many cases completely, using remote or hybrid work teams, and the best and latest work and communication software. . At the same time, the presence of revolutionary digital banks makes it possible to easily and seamlessly integrate banking into businesses or people’s lives, allowing individuals to access, use and control their assets whenever and wherever they want. .

AFRICAN GROWTH

The global influence of neobanks has not stopped in Africa. The continent’s financial potential is recognized around the world, with domestic and foreign investors seeking to tap into the new era of banking in such a large and ever-growing market.
Africa’s potential is very clear to see; it is a continent that encompasses more than 20% of the globe’s landmass and is home to nearly 17% of the world’s population, the majority of whom are underbanked. Along with increased accessibility to devices such as smart phones, tablets, and laptops, there is a prolific frontier in which neobanks can thrive and provide their services to millions of people across the continent.

Neobanks are currently at the center of Africa’s infrastructure development, digitally transforming the continent and enabling individuals and businesses to thrive in a rapidly changing online world. And with so much to offer, such as resources (natural and manufactured), skilled labor, and land investment opportunities, the use and progression of neobanks can facilitate rapid and large-scale exchange. of wealth, promoting Africa’s growth and presence in the global market. .

THE FUTURE OF FINTECH

FinTech is widely seen as an emerging sector in Africa, with foreign investment flowing into the continent, such as the United States investing nearly $1.5 billion in African FinTech in 2021.
This once again relates to the absolute potential that the continent holds for the growth of FinTechs and the rise of digital accessibility for the entire population.
In total, 2021 has seen tech start-ups raise almost $5 billion for the continent – around double the amount seen in 2020 and around nine times more than in 2017 – with FinTech alone accounting for around $3 billion. dollars.
In the FinTech space, one such company changing the face of African finance is Kippa.
Kippa is a disruptive FinTech startup that provides an easy-to-use accounting application, as well as a financial management application, to generate professional invoices, track profits, manage expenses and collect debts three times faster than the standard. Its free business app allows over 250,000 business users in Africa to easily and securely record their customers’ sales and expenses, while keeping track of all their business finances.
Kippa specializes in simple banking and accounting for micro businesses, allowing its users to create an instant bank account, access simple accounting, and send invoices and receipts; besides being an e-commerce platform, it is the perfect tool for a growing digital generation of entrepreneurs.

Given Africa’s potential and the funding flowing into the continent, FinTech companies such as Kippa, along with the rise of neobanks, are two spheres of financial services that will be central to the growth of individuals, families and businesses in the future.

Kippah – in the heart

Instant business bank account
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• Obtain an account in the name of the company

• Send and receive payments from customers

• Separate business from personal finance

Account bookkeeping
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• Record daily sales and revenue

• Send free receipts and invoices

• Collect debt three times faster from debtors

• Manage the stock without counting


Get a point of sale terminal
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• Collect card payments offline using KippaPay™

• Earn extra money by becoming a mobile money agent

CAC Registration
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• Register the business with the name of N15,000

• Three-day premium processing time

• Receive a tax identification number (TIN)

Free website for your business
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• Create an e-commerce storefront in 15 seconds

• Easily manage orders via WhatsApp

• Receive instant payments for orders

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