Fintech products have proved essential during the global Covid-19 crisis for the majority of the African population still unbanked. The sector which shows continued growth is attracting more interest.
Mobile operator MTN Rwanda has big ambitions for the mobile and online financial services market. For this purpose, the telecoms company wants to create a subsidiary specifically dedicated to this business segment, in which it sees greater possibilities as well as numerous business opportunities. The new company should be more agile in the face of fintech trends, hence its autonomous structure.
In an interview with newtimes.co.rw , Mitwa Ng’ambi, the CEO of the company, explains that mobile money, initially created as a department within MTN Rwanda, is no longer sufficient on its own. to meet the needs of consumers, which have diversified over the years due to changes in consumption habits and the appearance of new technologies. “ Where we are today we see the future of digital finance, fintech, so much bigger than we are today, ” she said.
During the global Covid-19 crisis, the fintech industry contributed a lot to the continuity of financial transactions for the majority of Africa’s still unbanked population. Its various products have proved essential for various basic needs such as the purchase of food, the payment of bills, even causing the volume of banking transactions to fall in some countries such as Kenya.
In its report “African Tech Startups Funding Report 2020”, Disrupt Africa indicates that this technological segment remained for the fifth consecutive year the one which aroused the most interest of investors in 2020. The International Monetary Fund (IMF) in its report “FinTech in Sub-Saharan African Countries: A Game Changer? “, Believes that FinTech, beyond financial inclusion,” will serve as a catalyst for the emergence of innovations in other sectors that promote economic growth and development “.
According to Mitwa Ng’ambi, discussions have already been initiated with the Central Bank of Rwanda to establish the requirements and characteristics of this new enterprise. The boss of MTN Rwanda stressed that the deadlines for the creation and constitution of the new company have not yet been determined. With its Fintech subsidiary, MTN Rwanda could develop new products adapted to new uses.
Source: Agence Ecofin