{"id":205583,"date":"2021-10-19T18:18:15","date_gmt":"2021-10-19T16:18:15","guid":{"rendered":"https:\/\/www.myza.co.za\/what-makes-fintech-solutions-succeed-we-built-a-model-based-on-ghanas-experience\/"},"modified":"2021-10-19T18:18:15","modified_gmt":"2021-10-19T16:18:15","slug":"what-makes-fintech-solutions-succeed-we-built-a-model-based-on-ghanas-experience","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/what-makes-fintech-solutions-succeed-we-built-a-model-based-on-ghanas-experience\/","title":{"rendered":"What makes FinTech solutions succeed? We built a model based on Ghana’s experience"},"content":{"rendered":"

Nearly a quarter of adults in the world do not have access to a basic bank account<\/a>. Financial technology (FinTech) innovations, such as mobile money, are one way to bridge this gap. Examples include M-Pesa in Kenya, Oi Paggo in Brazil and TCASH in Indonesia. All provide individuals with cheaper, easier, faster and more efficient ways of storing and transferring value. These efforts contribute to bridging the financial exclusion gap.<\/p>\n

We used the World Bank\u2019s definition<\/a> of financial inclusion, which is where:<\/p>\n

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individuals and businesses have access to useful and affordable financial products and services that meet their needs \u2013 transactions, payments, savings, credit and insurance \u2013 delivered in a responsible and sustainable way.<\/p>\n<\/blockquote>\n

Few FinTech firms in the global south have been able to replicate the success of FinTech innovations to reduce financial exclusion. The question is: why? We explore this question in our research paper<\/a> and provide some answers.<\/p>\n

The Ghanaian FinTech ecosystem<\/h2>\n
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\"Holding<\/div>
Mobile money application.<\/span> Rachel Strohm<\/span><\/span> <\/figcaption><\/figure>\n

As is true in other countries, Ghana\u2019s FinTech ecosystem is a complex and dynamic environment with interdependencies between various actors. <\/p>\n

Regulators such as the Bank of Ghana provide policy and regulatory direction for the financial sector.<\/p>\n

Traditional financial institutions such as commercial banks offer financial services through digital and physical branches. They are also the custodians of electronic funds transacted on FinTech innovations. <\/p>\n

Telecommunications companies (telcos) also play a critical role. They use their mobile network platforms to offer digital financial services, popularly referred to as mobile money. <\/p>\n

For their part, FinTech firms develop digital financial services. In Ghana, there are over 30 unique FinTech services. They include Qwikloan, Zeepay, G-money, Slydepay, and eTranzact. <\/p>\n

Then there are the agents \u2013 small enterprises, acting as \u201cshadow bank branches\u201d or \u201ccash-in, cash-out\u201d points \u2013 providing support for digital financial services. <\/p>\n

And, of course, the users that use FinTech innovations for financial transactions such as money transfer, securing micro-loans and paying bills. <\/p>\n

Success factors<\/h2>\n

There is limited research about how new financial technology entrants and incumbents work together to shape financial inclusion. In our paper we try and bridge that gap. <\/p>\n

We study the FinTech ecosystem in Ghana to learn how all the various actors work together to shape financial inclusion. <\/p>\n

We did a case study with a range of organisations in Ghana. We identified three practices that are key to a well-functioning ecosystem for FinTech driven financial inclusion:<\/p>\n