To fast-track fintech and entrepreneurial development in SA and the rest of the continent, the Cape Innovation and Technology Initiative (CiTi) has partnered with London-based FinTech Circle Innovate.
Fintech Circle Innovate, which describes itself as an industry leader in strategy, incubation models and investment, will assist CiTi to capitalise on the potential of fintech in Africa.
Ian Merrington, CEO of CiTi, says: "Partnering with FinTech Circle Innovate enables us to bridge the gap between entrepreneurs, start-ups and established industries and banks."
Joshin Raghubar, chairman of CiTi, adds: "We are excited to expand our fintech knowledge and capability ecosystem in SA and the rest of the continent. Moving beyond the financial sector itself, the particular needs and gaps in the African continent present an opportunity for fintech products and competencies to be powerful enablers in accelerating innovation and efficiencies in the value chains of other sectors."
Commenting on the partnership, Nicole Anderson, CEO and co-founder of FinTech Circle Innovate, says CiTi was a logical and obvious choice.
"The opportunity and use case for convergence in fintech in Africa will be a significant focus for us. Africa is showing the world how fintech is not just about displacing or enabling traditional financial services, but that it has huge potential to stimulate key economic sectors such as agriculture, retail and energy."
Africa rising
According to Frost & Sullivan, Africa's fintech sector is poised for exponential and rapid growth that will challenge existing financial service providers.
The market and research firm notes that growth of the fintech sector on the continent will be driven by reduced taxes on investment in start-ups, steady increase in mobile use for mobile banking and payments, as well as increase in the digital native demographic.
Cape Town-based CiTi has already established Africa's first specialised fintech hub that includes Thomson Reuters Innovation Lab, Barclays Rise Africa and the Blockchain Academy.
Merrington says the purpose of the innovation clusters is to actively identify, support and stimulate innovation and growth in key sectors that will benefit the greater ecosystem.
Capabilities such as blockchain, artificial intelligence, digital identity and cyber security are great examples which can enable, protect, accelerate and optimise a financial value chain, according to the London-based fintech company.
"We will also use our proven methodology and blend it with regional and local requirements and give the region access to our talent pool of some of the best minds in convergent fintech.
"In addition, we intend to roll out a knowledge ecosystem proposition. Fintech education for key influencers, executives and academia will also feature as an early focus area," it says.
Anderson states: "This is still a nascent industry - and stakeholders are learning in parallel. Innovation is much more about experimentation and execution than theory, and CiTi provides the perfect platform for us to bring world-class learning and trends to life with African use cases and serve the needs of all key stakeholders in a relevant and engaging way."
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