African banks to invest $3 billion in fintechs in 2020, says PwC
They spent $200 million in 2014.African banks will increase their spending on financial services technologies to $3 billion (€2.8 million) in 2020, compared with $200 million in 2014, according to a new report from audit firm PricewaterhouseCoopers (PwC).
Forty-six per cent of bank executives interviewed during the study said they were engaged in or about to partner with fintech companies.
"About 47 per cent of the world's population will be born in the digital age by 2020, with access to 20 times more information than today. It is therefore clear that the rapid advances in technology are leading us towards a more mobile and customer-focused world in which consumers redefine their expectations of commitment and value for money," the firm said in the report seen by Ecofin agency.
However, the development of fintechs will not take place at the same pace throughout the continent. In South Africa, the banking system is quite mature and a mobile banking solutions are expected to soar and offer an alternative to conventional banking.
The report cites that spending in this sector by the four biggest banks in South Africa is reaching R30 billion ($2.1 billion).
However, in Kenya, fintechs are established and their development will take the form of simple improvements.
In Nigeria, Chairman and CEO of Dangote Group,
Aliko Dangote announced last August the launch of the first fully digital bank, with a view to helping 40 million people access the traditional banking system.