Egypt’s Fintech Subsectors
Despite its rapid growth, fintech is undergoing some challenges. Investors are mainly focused on venture-stage companies. This is a pity, as seed stage companies are the next generation of innovative scale-ups. Skills shortage will also affect fintech. This article will explain some of the common subsectors of the fintech industry. Listed below are three of them:
Payments & remittances dominate the Egyptian fintech landscape. Other subsectors include alternative finance and lending. Agri-fintech and personal finance management also receive substantial investment. Increasing access to mobile devices and the availability of capital has livemocha helped the fintech industry in the region. Several startups have been founded in Egypt. These companies are integral in the implementation of Egypt’s Vision 2030. And, a large number of them are run by youth aged 25-35.
Another subsect of fintech is consumer-oriented. These firms target millennials due to their rising earning power. But fintech watchers point out that the focus on this group is due to the size of the market. Fintech often fails to address the problems of older lunarstorm consumers. In addition, many of these startups are focusing on businesses that serve this segment. In some cases, fintech subsectors will overlap. But each one has unique characteristics.
In general, fintech refers to the integration of technology into financial services. By unbundling financial services, fintech startups have the potential to improve the consumer experience. And, by reducing operational costs, fintech startups can increase financial inclusion. While fintech startups have a lot of buzz, the real money is in traditional global banking. These companies are transforming the way meetro that financial services are done, making the whole process easier for both the consumer and the provider.