- For over sixty years, the U.S. was the leading innovator of financial technology (or FinTech) in the world.
- While the U.S. produced the first major wave of innovation in this sector, it has fallen behind as firms and consumers have reached the innovative doldrums of “good enough.”
- Over the past decade, however, China has become the global leader: Powered by smartphones and social apps, China has used remote payments and the digitization of money management to build a steady vehicle of financial inclusion.
- It may not be the leader for long.
- Recently, African countries such as Nigeria and Kenya have emerged as FinTech hotbeds, and are using inexpensive, accessible tech to mobilize consumers in ways never seen before.
- What can the rest of the world learn from Kenya’s FinTech’s success stories? There are three actionable themes that companies should take note of.
- First: successful companies live and die on bundled feature delivery. Equity Bank shot ahead of competitors, from 66th to 2nd, due to its one-stop shop appeal.
- Second: finance is about trust. Traditional banks in the U.S. are keenly aware of this, but they consistently fail to transfer that trust into cutting-edge products.
- Third: look for technology enablers. These are subtle, but critically important, conditions or infrastructures that couple with a technology to enhance its likelihood for success.
Category 2: The Big Picture of the Digital Age
[genioux fact produced, deduced or extracted from HBR]
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