Fingo Africa has been granted regulatory clearance by the Central Bank of Kenya (CBK) to launch its offerings in the Kenyan market, positioning itself as the potential pioneer of digital-only banking in the country.
According to Fingo, African youth struggle to access financial services – taking anywhere from 48 hours to 2 weeks to open an account, with multiple in-person interactions and requirements to bring physical paper documents. For this reason, the bank is targeting to roll out digital banking services including opening an account, making withdrawals and deposits, checking bank balances, requesting bank statements, and monitoring financial records.
“Fingo has partnered with Ecobank, the largest footprint bank in Africa, providing Fingo market access to Ecobank’s 33+ markets. Fingo and Ecobank are planning a pan-African rollout beginning in Kenya, where they are the first digital-only bank in the country,” the start-up says on its website.
Fingo contends that its digital-exclusive product will increase the number of young people accessing banking services by eliminating the need for paper-based processes, resulting in a more convenient experience.
Africa has a median age of just 18, the youngest and fastest-growing continent in the world. By 2050, a third of the world’s young people (under 35) will reside in Africa. However, a large proportion of the Sub-Saharan African population remains part of a widespread unbanked community. African digital banks seek to solve this challenge buoyed by money raised from investors.