Articles by: BUSINESS DAILY AFRICA (MONDAY, JULY 22, 2019)
Last week the Central Bank of Kenya (CBK) and the Monetary Authority of Singapore (MAS) co-hosted 2,000 participants from 43 countries at the first-of-its-kind Afro-Asia Fintech Festival, dubbed “Fintech in the Savannah”. The gathering included more than 100 world experts in finance technology (Fintech), 55 exhibitors, and 110 university students. A global hackathon was also launched for Fintech entities.
The world has watched Kenya’s leadership in Fintech with great interest and admiration. Ten years after MPesa’s 2007 launch, a rigorous study confirmed that Mobile money had played a direct role in reducing extreme poverty – primarily by facilitating small business growth and improved financial behaviors, especially savings. Beyond MPesa, other transformative innovations were appropriately showcased at the Festival.
Meanwhile, the Fintech sector in Asia continues to grow exponentially. In 2018, more than one-third of all venture capital Fintech funding in the world was directed to Asia (this figure excludes the $14 billion raised for China’s Ant Financial Services), and Asia was home to six of the world’s 29 Fintech “unicorns” (venture capital-backed private companies with valuations greater than $1 billion).
In short, Fintech, is one of the hottest sectors for investment. That Africa and Asia are home to 85 percent of the world’s poorest people suggests, the important role that Fintech can play in expanding economic opportunity. But there is no guarantee that this will happen, and the direction Fintech will take depends on who designs it, and for what purpose.
Last year I was honoured to be asked by the UN Secretary-General António Guterres to serve on his Task Force for Digital Financing of the Sustainable Development Goals (SDGs). The Task Force is exploring how we can ensure the digital revolution that is rapidly transforming financial services can be harnessed to advance sustainable development.