Top 5 fintech trends and predictions for Africa in 2023
The new BDO Fintech in Africa the report provides short bits of fintech news related to North, South, East and West Africa to provide an overview of what is happening and to provide some clarity on an evolving and growing industry.
Here are the top 5 fintech trends and predictions for Africa in 2023.
Given that a large proportion of Africans are still unbanked, there is a huge market to tap into, and many fintechs and banks are trying to solve this problem and tap into this market. Fintechs in Africa will continue to provide solutions to the continent to create seamless, borderless transactions. Furthermore, many banks will continue to work with emerging fintechs to solve this problem, as well as many others.
Globally, funding has increased exponentially; in Africa it is the same as financing increased years. According to data from The Big Deal, African startups raised over $4 billion in the third quarter of 2022 alone, the fastest the continent has seen in the past three years since passing $1 billion in funding. The funding is also impressive because it comes at a time when over 100 startups in Africa have raised their first round of $1 million+ this year. Fintech is proving to be the most important driver of investment on the continent, and experts predict that 2023 will be an even better year.
Mobile Network Operators (MNOs) will become more active
MNOs are the key to see in the room. The banking sphere is competitive, and should the MNOs get a mobile money licence; the competition will be even tougher. There has been a huge amount of research indicating that West Africa will focus on growth in mobile and online banking rather than traditional banking institutions, as this is at a lower cost to the average consumer. With the steady growth of smartphone users, Africa will experience growth in more accessible financial solutions.
Crypto adoption will further increase
The crypto scene has been incredibly turbulent lately. But with the rise of fintech and the growth of companies like Luno, more mainstream use and adoption of cryptocurrencies is expected. We predict huge growth in crypto adoption in Africa in 2023, and leading cryptocurrency exchanges are making efforts to support this trend.
As technology improves exponentially, a number of new innovative solutions will emerge. We expect to see new, exciting changes in the fintech sphere through IoT technology, artificial intelligence, Big Data and a number of other types of new technologies and trends.
