What Does the Future Hold
for Financial Services in Africa?
The primary challenges that Africa faces today
As mentioned above, Africa has a large population, and it is increasing very fast. When it comes to natural calamities, the people here are ill-equipped to deal with them. They do not have the resources nor the knowledge of fair trade practices. The policies are mostly ineffective and do not cater to the immediate developmental needs of the continent.
Financial systems in Africa
The financial system in Africa is one of the smallest in the world today. The volume of private credit to GDP and its domestic revenues are not adequate to cater to the development needs of the nation. The country hardly can compete in the global market. This is why now the government is focusing on technologies and digital finance to help the nation get better access to financial services. The process to date has been encouraging, and the future does look bright for the people of the continent.
Africans have the ability to make necessary payments for products and services even if they do not have a bank account. The access to financial services with the help of a simple device like a mobile has helped many people focus on innovation especially if they are into farming or the ownership of a small business. This is indeed a good trend for the nation. Financial innovation is now the prime onus of government and other trusts that have been formed for the development of the country.
Farmers are being educated on mobile technology and the boons of going cashless. This has helped them to overcome major obstacles they face when it comes to credit and investments. Private sector companies are also developing faster, and success stories are coming in from all corners.
Insurance and pension
When it comes to life insurance and pension funds, the continent still has much work to do. The goal here is to deepen the financial services market. People should be aware of the market so that they may step forward and the movement of funds is possible. The same also applies to the trading and bond markets.
Last but not the least, the masses must be educated about formal banking systems and structures. This is the need of the nation right now for consistent economic development. The banks again should include more financial programs and services to attract the masses. The need right now is to educate them. Most of the people here still resort to traditional methods, and it is now for them to step out into the light of improved financial services for a secure and brighter tomorrow!