During a recent interview at Africa Fintech Summit Nairobi 2024, the Chief Executive Officer of Fincra, Wole Ayodele, spoke on streamlining regulations for financial technology start-ups and platforms in Africa.
Ayodele is well-versed in dealing with regulators across Africa after leading Fincra to obtain licences in three African countries and counting.
Speaking to the Kenyan Wall Street, a finance and technology media house in Nairobi, Ayodele spoke about how the slow rate of regulation affects the fintech ecosystem in Africa.
“One of the biggest challenges that we face as fintechs will be regulation,” he said.
“So the pace of which the regulators move. A classic example is how long it takes to get a for example a PSP (Payment Service Provider) licence in
Zambia, Ghana or Kenya. In some of these countries, you have businesses waiting as long as two to three and four years to get a licence.”
According to Ayodele, these delays stifle innovation, leaving businesses unable to launch or scale fully.
The relationship between innovation and capital is symbiotic. Investors are drawn to innovative ideas and solutions, especially in the tech sector.
But when companies are bogged down by regulatory delays, capital becomes cautious.
“The problem we face,” the CEO explains, “is that when you don’t licence fintech companies and you are slowing down innovation, you are also slowing down capital, because capital will always follow innovation.”
Fintechs have become a cornerstone for financial inclusion and economic growth across the continent. They provide innovative solutions that enhance access to financial services, especially for the unbanked and underserved. However, regulatory delays hinder these goals, limiting the sector’s potential impact.
The CEO’s call to action is clear: “My one ask today is for regulators to make it easier for fintechs to operate on the continent.”
Africa can accelerate its fintech revolution by streamlining licensing processes and fostering a more supportive regulatory environment. This will not only unlock greater innovation but also attract more capital, creating a thriving financial ecosystem that benefits businesses and consumers alike.
Under Ayodele, Fincra has several licences across Africa, including Payment Solution Service Providers (PSSP) and International Money Transfer Operator (IMTO) licences in Nigeria and a Third Party Payment Provider (TPPP) licence in South Africa.
Fincra also holds licences in Canada and the United Kingdom.
