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Kenya leads Nigeria, Others in Mobile Banking

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  • Kenya leads Nigeria, Others in Mobile Banking

Kenya has emerged Africa’s largest mobile banking leader in sub-Sharan Africa (SSA) following the publication of a survey conducted by EFG Hermes, an Egyptian investment bank.

According to the survey titled ‘Mobiles: Deepening financial inclusion, but at high cost’, 72 percent of Kenyan banking population used mobile phones to access their bank accounts and other mobile banking services in 2018.

This is three times more than the global average of 25 and represents the highest in sub-Saharan Africa.

Followed by Uganda’s 47 percent, while Tanzania recorded 37 percent.

Nigeria came last with only 8 percent of its population using mobile devices to access financial services in 2018.

While this means seven out of ten Kenyans are using mobile phones to access financial services, the cost of such service is still very high, according to the Egyptian bank.

“Whilst we are very encouraged by the depth of mobile banking across SSA countries, we believe that now is the time to focus on the costs and would encourage both the central banks and ICT regulators to review the cost of this financial inclusion,” EFG Hermes stated.

Growing mobile adoption in Africa is aiding financial technology and continues to deepen financial inclusion. EFG Hermes expects this to continue going forward.

The survey noted that Nigerians preferred NIBSS Instant Payments to mobile payments because of its low-cost framework.

The bank said: “With the development of NIPs (NIBSS Instant Payments), a shared agency network and low-cost framework, Nigerian banks should remain dominant in the retail payments space for the benefit of its low-income users. Its spirit of fair play and open competition is the difference and should be an example for the rest of SSA,” the report explained.

Despite the low cost, 36.8 percent of Nigerian adult population is still outside the financial system, this represents 36.6 million Nigerian adults.

Last week, the Nigerian Communications Commission (NCC) said the number number of Nigerian mobile internet subscribers hit 119.5 million in April, while the total number of bank customers stood at 38 million. Suggesting that the number of Nigerians using the internet to access information are more than those using it to perform financial transactions.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Nigeria’s Fintech Startups Raised $122 Million in 2019

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Fintech

Financial Technology Startups in Nigeria Raised $122 Million in 2019

Financial Technology (fintech) startups in Nigeria raised a combined $122 million in 2019, according to the Nigerian Stock Exchange (NSE).

Mr. Olumide Bolumole, the Divisional Head of Listings Business, NSE, disclosed this while speaking on the fintech industry and its growth in recent years.

“The Fintech industry in Nigeria continues to gain increasing popularity after taking the lead in Africa and attracting $122 million in funds in 2019.

“At the exchange, we recognise the opportunity to provide a platform where players in the Fintech landscape can have easier access to right-sized capital to fulfil their organisational objectives.

“The NSE is, therefore, committed to developing multiple solutions to address the needs of the Fintech community in Nigeria such as the provision of the NSE Growth Board.

“The exchange will also prioritise collaborations with organisations such as FinTechNGR to ensure solutions from this webinar are implemented for the benefit of the sector,” he said.

However, with just about 200 fintech companies in Nigeria, the sector is still young and just emerging with room for growth, considering the fact that most Nigerians are still unbanked.

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Fintech Companies Raised $554 Million in Investment Last Week

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Financial Technology Firms Raised $554 Million Investment Capital Last Week

Financial Technology (Fintech) companies raised a combined $554.17 million from investment rounds last week.

A data compiled by Finbold showed the top 25 fintech firms were led by Razorpay and Wealthsimple.

Razorpay, a payment platform, raised $100 million to account for 18.04 percent of the total amount raised during the week. This was followed by Wealthsimple’s $87 million.

Deepwatch came third with $53 million while NYDIG and M1 Finance came fourth and fifth with $50 million and $45 million, respectively.

Other noteable fintechs include Extend $40 million; FOSSA $30.55 million; +Simple $23.75 million; Finexio $23 million; and Sonrai Security $20 million.

On the other hand, Evolve Credit was the last among the 25 companies. It raised $0.025 million while Upside Saving raised the second least fund at $0.42 million. Also, they were the two firms that raised below $1 million in the week under review.

Oliver Scott, a Finbold editor, who spoke on funding in the fintech sector, said “Notably, venture capital is still the primary source of funding for fintech startups. However, new trends indicate a high level of private equity and debt financing. Additionally, more funding activity is concentrated around later funding rounds. The sector is also witnessing a rise in IPOs and acquisitions. Such trends are pointing to a maturing market.”

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Snapchat Adds 39 Million Daily Active Users YoY Representing 18% Growth

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Snapchat Daily Users Increase by 39 Million YoY, a 18 Percent Increase

Data presented by Buy Shares indicates that Snapchat daily active users have grown by 39 million on a Year-Over- Year basis. The addition represents a growth of 18.57%.

Pandemic spurs Snapchat’s DAU growth

During Q3 2019 the daily active users stood at 210 million while the figure was 249 million as of Q3 2020. Between Q3 2018 and Q3 2020 Snapchat’s daily active users have grown by 33.87%.

After witnessing a rise in daily active users the numer slumped between Q1 2018 and Q4 2018 with a percentage drop of 2.61%.

The research also overviewed Snapchat’s number of daily active users based on regions. As of Q3 2020, North America recorded the highest number at 90 million, a growth of about 7% from a similar period last year.

Commenting on the recent surge in Snapchat’s daily active users, Buy Shares researcher Justinas Baltrusaitis said:

After taking a dip in users around 2018 Snapchat began witnessing a steady rise from the end of last year. The platform’s 2020 numbers have been boosted by the coronavirus pandemic.During the health crisis, most people were confined to their homes and turned to social platforms like Snapchat for entertainment.”

Europe has 72 million active daily users as of Q3 2020, a growth of 10% from Q3 2019. Elsewhere during Q3, 2020 the rest of the world had 87 million daily active users.

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