Africa’s Newest Fintech Unicorns: TymeBank and Moniepoint Lead the Way
Introduction:
Africa’s fintech ecosystem has recently seen a significant boost with two major players — TymeBank from South Africa and Moniepoint from Nigeria — securing unicorn status. Their success showcases how tailored fintech models can succeed in a region where traditional banking systems have limitations, and a significant portion of the population remains unbanked.
The Rise of TymeBank and Moniepoint
Both TymeBank and Moniepoint have achieved valuations over $1 billion, marking them as key players in Africa’s growing fintech sector. Their core strategy focuses on providing easy access to banking for individuals and businesses, overcoming traditional barriers in Africa’s financial landscape.
Tailoring Banking to Local Needs
While fintech models in more mature economies are primarily digital, the African context demands a hybrid model. TymeBank and Moniepoint blend digital banking with physical touchpoints, providing services where cash is still king and internet connectivity is inconsistent.
TymeBank’s Approach:
TymeBank’s model emphasizes partnerships with retail chains such as Pick n Pay, enabling easy access to financial services at grocery stores. This physical touchpoint allows South Africans to open bank accounts and deposit money without stepping into a traditional bank branch.
Moniepoint’s Strategy:
Moniepoint focuses on building an extensive network of small business owners who act as agents equipped with point-of-sale devices. This decentralized approach helps the company reach rural and underserved areas where banking infrastructure is minimal.
Meeting the African Market Where It Is
The informal economy is significant in Africa, especially in countries like Nigeria, where over 60% of the GDP comes from informal commerce. To tap into this market, both TymeBank and Moniepoint employ a model that combines both online and offline methods to provide a holistic banking experience.
Physical Touchpoints for Digital Success:
Both fintechs have used physical touchpoints effectively, helping expand their user base while maintaining their digital offerings. TymeBank has over 1,000 kiosks and 15,000 retail locations across South Africa, while Moniepoint reaches millions of customers through its agent network.
Fintech Success Stories in Africa
The success of these fintech companies highlights the growing potential of Africa’s digital economy. Other companies like OPay, Kuda, and Interswitch have also adopted similar hybrid models, offering services that combine digital banking with physical customer support.
Expansion Plans and Regional Consolidation
Both companies now aim to replicate their successful models in other markets. TymeBank is expanding into the Philippines and has plans for further growth in Southeast Asia, while Moniepoint is eyeing markets like Kenya.
Conclusion:
The hybrid approach used by TymeBank and Moniepoint has proven to be an effective way to bridge the gap between the digital and physical worlds in Africa. With fintech continuing to capture significant investment, this model could serve as a blueprint for future success in the continent’s informal markets, not just in finance but also in areas like telemedicine and e-commerce.
