Audio By Carbonatix
The current digital financial services ecosystem comes with a lot of promise which is tangible through the volumes of transactions churned out on various platforms.
The past decade has seen financial technology (fintech) businesses erupting with a lot of verve through the offer of innovative solutions and products across the African landscape.
Various solutions have been carved which require the need for collaboration among players in the Fintech, digital banking and digital payment ecosystem.
This has become increasingly important due to consumer appetite for conveniently offered products which drives the adoption of digital financial services.
Today, instant payment is preferred above old payment modules because it facilitates the fluidity of business operations.
Banks as custodians of instant payment APIs in most cases, have the responsibility to guarantee processes that facilitate integrations are properly scoped to aid collaborations with Fintech entities.
Another example worth mentioning is partnership on co-acquiring business, which must be established in a manner that ensures the acquisition of merchants is done without conflicts and with the right pricing strategies in place.
Banks must also ensure payment gateway integrations with Fintechs meet good turn-around-times through the processes of proper risk assessment and the conduct of effective due diligence activities especially in relation to web acquiring business.
The need for guidance on product development and on product management is a key role Banks must play through the sharing of knowledge with Fintechs. This role is crucial at the start up stage to ensure the right products are scoped before go-live and launch.
The conversation on open banking, which is a practice that provides third-party financial service providers open access to consumer banking, transaction, and other financial data from Banks and non-bank financial institutions through the use of APIs, portends a lot of benefits worth stating.
Open Banking at implementation will allow for interaction between accounts and data across institutions for use by consumers, financial institutions, and third-party service providers.
Economies of scale can be achieved through open banking modules for players within the digital financial space including Electronic Money Issuers.
The concept of Super Apps must also be considered as a key trend which will further enhance the continuous relationship between digital financial services providers.
There is the need for an effective partnership on Super App services especially in relation to API sharing between players in the ecosystem.
Opportunities within the fintech space in relation to Lendtech, Agritech, Healthtech etc require effective strategies are put in place for the establishment of a joint-venture approach for the launch of products and solutions.
The future of digital financial services in Africa is reliant on a continuous relationship between Banks and Fintech players which cannot be underemphasized.
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