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Fintech industry participants participated in a fireside discussion on "Innovating in Payments and Tech" at Moonshot by TechCabal on Wednesday. The topic of fintech innovation was also covered in the conversation, including regulatory frameworks, startup expansion tactics, and blockchain acceptance.Given the current circumstances, African businesses ought to proceed cautiously when seeking funding. Fintech industry participants who participated in a fireside discussion on “Innovating in Payments and Tech” at Moonshot by TechCabal on Wednesday agreed on that point. Francis Nwoboshi, CCO of Sochitel Group; Wole Ayodele, CEO of Fincra; Ahunna Ogunedo, investment manager at 54 Collective; and Vivian Mbene, COO of The Tonic Technologies, were among those present at the discussion.
“To help them properly understand their solution, startups should start by raising a very small amount of money,” suggested Ogunedo. According to her, this strategy enables African startups to test their concepts before pursuing bigger fundraising rounds, which could improve their chances of long-term success and relieve them of the strain of meeting expectations after raising a sizable round. The topic of fintech innovation was also covered in the conversation, including regulatory frameworks, startup expansion tactics, and blockchain acceptance.
Every transfer you make today—whether to a chauffeur, a customer at a fast food restaurant, a delivery person, an open account, or a wallet—is an example of fintech, according to Ayodele. He continued by saying that fintech has invaded high-risk industries that traditional banks avoid, such as retail and consumer loans, which he claims is evidence of how fintech has evolved into a disruptive force for the better.
It was noted that blockchain technology in particular has the potential to increase trust. Adoption of blockchain technology enhances security and transparency. I am aware that suspicion permeates everything and everyone in Nigeria. We tell people to “shine your eyes” or “don’t greed for anybody,” Vivian clarified, highlighting how blockchain might allay people’s concerns about financial transactions.
Regarding regulation, Ahunna pointed out that different countries on the continent take different tacks; some choose a bank-led model, while others take a risk-based approach. “The first step for fintechs is to understand how your market’s regulatory framework functions, whether it is risk-led or bank-led.” She states that rather than having a negative attitude towards regulators, fintech companies should collaborate with them and keep up of the most recent compliance requirements.
The panel brought attention to the significance of strategic relationships for businesses seeking to grow. Francis observed, “Go alone if you want to go fast, but go together if you want to go far.” Therefore, if a firm needs to grow and enter new markets, one of the things I would advise is to conduct research and look for partnerships that could enable it to skip some steps in the process.
Additionally, the panellists discussed financial inclusion. Even though there has been progress, they both agreed that more work has to be done, and that the two most important things to do to speed up financial inclusion are fostering trust and fighting fraud. Innovation was seen to be significantly fuelled by banks and fintechs working together. According to Vivian, working together benefits everyone.
In order to maintain fair competition based on trust, authorities and industry participants must work together as fintech expands throughout Africa. This will ultimately spur innovation.
