FINTECH IS KEY TO ACHIEVING THE 2030 DEVELOPMENT AGENDA

My home country Kenya is a first in fintech for payments, money transfer and access to credit. And
one does not need a smartphone, they can use USSD codes to transact. Kenya is home to one of the
largest mobile money services in Africa called Mpesa. Mpesa had 15.2 billion transactions in the
financial year ending 31 March 2021. The proportion of Kenya’s population with access to formal
financial services is more than 83%, driven largely by mobile technology.

The use of mobile money to borrow, save, pay bills, pay for goods and services and send money is cost
efficient and good for the environment because it minimizes travel to financial institutions and the
ensuing paperwork. One does not have to go to a financial institution to transact money. From the
phone, one can make a payment, transfer money to the bank or from the bank or to somebody else,
request for a loan and pay loans. This is efficient and time saving, increases productivity and provides
security because one doesn’t have to walk around carrying money.

Fintech has increased the number of people who are banked. Previously, banks had a long list of
requirements for one to open a bank account and one had to be formally employed. This locked out
a majority of people who were in informal employment and unbanked, hence they did not have access
to credit. Today, one only needs a mobile phone and sim card line to access banking services and
credit. It is possible to access credit within 10 seconds. For example, if you are shopping at the
supermarket till and you realize that you do not have enough money, you can request for an instant
loan to pay for the shopping and pay right away at the till.

Two of the biggest banks in Kenya have mobile phone bank accounts available. This has enabled the
unbanked to be banked. Fintech has led to financial inclusion, and the reduction of poverty and this is
towards the achievement of Sustainable Development Goal 1 on ending poverty. The possibility of
saving, borrowing, paying bills with ease and managing risks makes a difference in the life of the poor,
including those who live in far flung areas. Financial access provides capital for small businesses and
enables them to thrive while fintech enables safe/secure and instant payments, improving the
business operating environment and enabling the business owner to generate income to sustain
themselves and their families.

Fintech is a leading contributor to sustainable development. In the years to come, fintech will be a
basic necessity and lack of it will mean intense exclusion, equivalent to what it was like being unable
to read and write in the 1990s.

The future is fintech.

Anita Muathe