The most exciting opportunities in fintech aren’t always the most glamorous or groundbreaking; instead, they revolve around practical solutions that address real customer needs.
In a discussion with Moneyweb’s Jeremy Maggs at the RMB Think Summit, Michael Jordaan – founder of Montegray Capital and partner at Chronos Capital – offers insights into financial inclusion, mobile money, the impact of artificial intelligence (AI), and the importance of engaging with underserved communities.
Jordaan believes that the future success of the financial services industry will depend on a profound understanding of underserved customers, effective use of AI, and the creation of products that resolve everyday challenges often ignored by traditional banking.
The evolution of fintech and financial inclusion
He highlights the remarkable growth of mobile money in Africa, noting a 24% increase in transaction volumes last year, largely driven by the informal economy. This trend emphasizes the need to prioritize customer needs over merely adhering to technology fads.
He points out that many financial institutions are still crafting products meant for the wrong demographic.
Successful fintech companies are focusing on individuals outside traditional banking systems, utilizing tools such as USSD banking, compatibility with basic mobile phones, and community-centric access points.
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The conversation also explores the relationship between established banks and fintech startups.
While conventional banks continue to serve sophisticated clients, Jordaan notes that fintechs are thriving by meeting the needs of low-income and previously excluded market segments. In response, traditional banks are increasingly seeking partnerships and acquisitions.
Jordaan characterizes AI as a game-changing element that no organization can afford to ignore.
He stresses that successful organizations will be those led by individuals who embrace AI, invest in training, and weave the technology into all facets of their operations.
Looking ahead, Jordaan envisions that the next successful fintech companies will be formed by small, highly skilled teams leveraging AI to develop economical solutions distributed through existing banking and mobile networks.
Key topics
- The value of “boring” yet impactful fintech innovation
- The growth of mobile money throughout Africa
- Financial inclusion within the informal economy
- Designing products for underserved populations
- Partnerships between fintech and traditional banks
- The role of AI in banking and financial services
- Leadership regarding AI integration
- Reaching the unbanked using accessible technology
- Cultivating agile fintech startups in emerging markets
- The future of banking innovation in Africa.
Catch the full conversation with Michael Jordaan on the trends transforming Africa’s fintech landscape.
Presented by RMB Think Summit.
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