Access to financial services in Africa is getting better as data suggests that financial inclusion is increasing. However, when this figure (financial inclusion) is compared with countries in the developed world, we discover that financial inclusion is still poor in Africa, suggesting there is still cash on the table.
In the words of Tomilola Majekodunmi - founder of Bankly, “We haven’t scratched the surface. [Traditional] banks have done what they have done…but we still have 100m [people] to go. And we are not talking about the bottom of the pyramid, who need economic inclusion before they even need financial inclusion.”
With statements like this, one can deduce why the rate of investments in the fintech space is on the rise. Apart from the popular seed round making the news in Africa fintech's space, another trend is the rate at which fintechs from other regions are expanding into Africa. An example is a partnership between UnionPay and Wiseeasy to launch their digital products in Africa.
UnionPay means business in Africa, as the company has teamed up with S2M to scale digital financial inclusion across the African continent. As an industry leader in the African market for over 35 years, S2M serves the African payment landscape through its headquarters in Morocco, its subsidiaries in Tunisia, and a vast network of reliable partners.
S2M serves more than 180 institutions on four continents. Its customer-centric digital strategy focuses on providing innovative, accessible, convenient, and functional products and services 24/7
This new achievement will allow S2M to provide UnionPay payment services to its customers with high performance, uptime, and security. The partnership will further assist the expansion of innovative digital payment solutions, adding value to the African economy and promoting financial inclusion.
What they are saying
"We are delighted with this new achievement; thus, strengthening our strategic partnership with UnionPay International. We continue to meet the African ecosystem needs, which is in constant search of innovation, flexibility, and adaptability to the shifting consumer behavior". Mr. Mohamed Amarti, Vice President, S2M Group.
"We are delighted to collaborate with S2M as the chosen partner for a long-term investment in Africa", said Mr Luping Zhang, General Manager of UnionPay Africa Region. "We support S2M's innovative and customer-centric initiatives in driving financial inclusion. Together, we continue to contribute towards the global payment ecosystem".
Sub Sahara Africa in focus
GDP: $1.686 trillion in 2020 compared to $1.77 trillion in 2019
Population: 1.136 billion in 2020 compared to 1.107 billion in 2019
GDP per capita: $1,483 in 2020 compared to $1,559 in 2019