The need for African banks to innovate at a quicker pace and access new customer segments is behind the increasing number of financial institutions partnering with or investing in fintech startups. Disrupt Africa reported last month on how we are unlikely to see vast numbers of banks acquiring fintech startups, but there is evidently a trend towards African banks signing deals with startups in order to access their expertise. Part of the reason for this is that startups are capable of doing things banks cannot, like innovating at a fast pace. If they partner they offer banks access to products and services that can differentiate the banks and improve efficiencies and customer service​,” he said. However, the ability to access new market segments is also key, according to Wakaria.

Source: The North Africa Journal April 10, 2018 06:00 UTC