Investors and FinTech startups need to address information gap to stimulate payment ecosystem – BoG Governor
Dr Ernest Addison, Governor of the Bank of Ghana, has stressed the need to address the information gap between investors and FinTech startups to stimulate the payment ecosystem.
This, he said, would help unleash the full potential of FinTech startups to contribute meaningfully to the economic development of the African continent.
Speaking at the press launch of the 3i Africa Summit, Dr Addison said the lack of funding could significantly stunt the growth of the FinTech movement in several ways.
“Without sufficient capital, brilliant ideas, and prototypes of FinTech startup solutions with the potential to address the diverse financial service needs have failed to progress to production. Furthermore, a FinTech is only as strong as its members and in that same vein, a lack of funding could ultimately impact a FinTech’s ability to attract and retain premium talent,” he said.
The summit is designed as a platform for governments, businesses, investors, regulators, innovators, and thought leaders to discuss and collaborate on measures to unlock Africa’s full potential by harnessing the potential of FinTech.
The Summit, which is premised on innovation, investment, and impact, is being organised by the Bank of Ghana and Development Bank Ghana, in partnership with the Monetary Authority of Singapore through its subsidiary, Elevandi.
It will take place over three days from 13th – 15th May this year in Accra, under the theme “From Innovation to Impact: Investing in Africa’s Financial Sector to drive Africa’s Transformation.”
Dr Addison said deficient funding could also hinder FinTech companies’ ability to navigate regulatory requirements and meet compliance standards, which were non-negotiables, especially in Ghana’s and Africa’s financial industry.
“From the regular engagement with FinTech startups as part of the Bank’s innovation nurturing role, it has emerged that most of these nascent companies generally lack investor visibility,” he said.
He said the actualization of novel technologies in the payment ecosystem has revolutionized business transactions, reshaped customer behaviour, and redefined the nature of commerce.
Dr Addison said Africans had an advantage in the digitization race due to the bulging tech-savvy youthful population, the high mobile phone penetration, the consistent expansion of mobile network access and more importantly, the rising homegrown FinTech solutions.
“These immense opportunities provide fertile grounds for accelerating digitalisation. And while these are commendable, it is important to highlight the potential negative impact a lack of requisite investments in African FinTechs could have on the innovations and scalability of solutions in achieving the desired impact,” he said.
Against this background, Dr Addison said the Summit would feature a Lab Crawl, a platform through which diverse participants could benefit from visibility for investment opportunities to both local and international investors and capital providers.
The summit will attract 15 keynote speakers of eclectic and influential backgrounds, about 15 Central Bank Governors spanning 5 continents, 3 Heads of States, over 100 global investors, asset managers, Tech Executives and many more.
In addition, the Summit will provide the opportunity for professional and career advancements through the integrated online learning channels, which will offer purposefully designed programmes in partnership with experienced partners like Cambridge SupTech Lab, De University of Ethereum and our own National Banking College.
The Minister of Finance, Dr. Mohammed Amin Adam, who was also present at the occasion, reiterated the importance of supporting startups and local businesses as they had become key contributors to the Ghanaian economy.
According to him, Government is committed to implementing programmes that generate growth from within with a focus on the growth of small businesses.
It is in this regard that the Bank of Ghana in collaboration with the Development Bank Ghana (DBG) and the University of Ghana Business School (UGBS) launched the MSME Innovative Finance Project, a research study to determine the current and emerging challenges of SME financing in Ghana.
In all these DBG has been a catalyst and glue, by bringing key players like the Bank of Ghana, University of Ghana and a host of other government agencies and commercial banks together and driving the agenda in line with their mandate of supporting SMEs in order to secure a transformation of the economy.
3i Africa Summit is a fintech festival to drive Innovation, Investment and Impact for Africa’s Fintech and Financial Services sectors.
The initiative is jointly developed by the Bank of Ghana, the Monetary Authority of Singapore, Development Bank Ghana, and supported by Elevandi to spearhead transformative discussions, address key growth and investment opportunities, and explore how market players in the financial ecosystem are leapfrogging in digital transformation and pioneer the much-needed dialogues and actions to drive Africa’s Fintech growth.
Source: GNA