By JONATHAN KAMOGA

More by this Author

The HiPipo UgandaCEO Innocent Kawooya talked to Jonathan Kamoga about developing the fintech landscape in East Africa.

*******

What would it take to have a good environment for fintech development?

Regional governments should leverage frameworks like the Level One Project and its principles to foster supportive regulatory frameworks, develop affordable digital infrastructure, increase financial literacy, encourage collaboration, provide access to funding and support skills development. (The Level One Project is an initiative that works to support inclusive interconnected pro-poor digital economies).

How can start-ups position themselves to acquire needed funding?

It is unlikely that a start-up fintech will access the connections and knowledge they need to raise funding within just one year. Funding might also be in the hands of millions of users who feel that the fintech solution solves their problem.

Therefore, innovators should continue to develop solutions that address the needs of their target users, build a solid reputation, and foster trust with their stakeholders.

Read: Tecno, Infinix battle Samsung for Africa market

What are some of the challenges facing fintechs and developers in the region?

Despite their enormous financial inclusion potential, small fintechs lack the capacity to build interoperable solutions. Limited access to funding, a lack of supportive policies and limited digital infrastructure are among the major hurdles. Additionally, low levels of financial literacy, stiff competition from traditional financial institutions and cybersecurity risks compound the challenges.

Any neglected areas by developers?

Innovators have yet to develop more solutions that kick-start users’ journey into on boarding onto formal financial services. For instance, opening a bank account is still challenging, and there is a lack of simple-to-use solutions that cater for future phone owners and non-phone holders.

While there are a few affordable card-based innovations such as KAWU that support students in managing their pocket money, more needs to be done to drive financial inclusion.

Emerging technologies such as AI, ML, AR, QR, cloud computing, and Open APIs offer new opportunities to create more accessible and user-friendly financial solutions. The future of fintech is about enabling users to access systems through multiple channels, which can lead to more active accounts.

To achieve this, we need to create interoperable instant and inclusive payment Systems and digital identity schemes that build trust and confidence among users.