Smart talents are scared of banks,” Olowe further sharedĪs opposed to competing with fintechs, banks could partner with them to maximise their comparative advantages and achieve their objectives. Banks would not be able to attract the type of talent that can make things happen. Merchants and other users who are used to a better experience with fintechs wouldn’t care. Customer experience and support would be poor. Cleantech open linkedin full#Banks would run the fintechs like a bank slow and full of red tape. They would pump money into these fintechs and most of them would fail abysmally. “Frankly, the banks have no chance of success. Yet, a huge financial war chest doesn’t always equate to market dominance in unfamiliar terrain. In 2020, Nigeria’s top five banks, commonly known as FUGAZ made $1.56 billion in profits, a huge disparity compared to some fintechs who operate at a loss despite their sky-high valuations. Hydrogen, Squad, Alat, and PaywithSpecta are fintech products fromAccess Bank, GT Holdings, Wema Bank and Sterling Bank respectively. Unsatisfied by the background role, commercial banks have floated fintech verticals to rival the existing fintech startups. Paystack’s connection with banks was critical for early success,” Adedeji Olowe, founder of Lendsqr and a Trustee of Open Banking Nigeria, shared in a text with TechCabal Teamapt grew out of Fidelity Bank and Wema Bank. For example, Flutterwave grew out of Access Bank. “Nigerian banks were the incubators or early supporters of Fintechs in Nigeria. The success achieved by these startups lies a great deal in the path created by commercial banks in the country in the last two decades. Buoyed by the successful acquisition of local startup Paystack by payment giant Stripe in 2020, fintech startups in the country received over 60% of the $1.3 billion raised by Nigerian startups last year. They leverage technology to increase access to financial services to previously underbanked and unbanked segments of the population. This data is exclusive of estimated grants from accelerators like Techstars or Y Combinator.Īcross the globe, the financial services industry is faced with competition from fintech startups. Raises are often announced later than when the deals are actually made. Note: This data compiles only funding deals announced in September 2022. Nigerian fintech NowNow’s $13 million seed round.South African biometrics platform iiDENTIFii’s $15 million raise.Nigerian digital procurement platform Vendease’s $30 million raise. Cleantech open linkedin series#Nigerian crypto exchange startup Yellowcard’s $40 million Series B raise.Bboxx’s $200 million acquisition of Ghana-based cleantech PEG Africa.The top five disclosed deals of September 2022 are North Africa brought in the lowest funding from September with $16,650,000 in disclosed funding. Next is East Africa with $27,220,000, while South African startups came a close third with $26,650,000. Per region, West Africa led with $313,045,000 of the funding. Per sector, the top three sectors in September are energy, fintech and e-commerce. This month’s raise was led by Bboxx’s $200 million acquisition of PEG Africa. So far, this total is the highest amount raised in a month by African startups since June 2022, a 75.9 % increase from August’s $218,000,000. In September 2022, African startups made 36 fully disclosed* raises totalling $383,465,000.
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