• Monday, June 24, 2024
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BusinessDay

Fintech expert shares strategies to rescue struggling startups

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Ayodeji Saba, a tech expert, has expressed concern that financial technology startups in Africa have faced persistent challenges of dissolution soon after establishment.

In a statement syndicated to news media, the tech expert with over a decade experience, noted that despite commanding some of the highest global market prices, it remains hard to believe that Fintech startups still face significant failures.

“It has almost become commonplace to see Fintech startups closing down soon after raising significant funds from investors today. Only a few have managed to surpass the test of time, with some collapsing even after years of operation.

“Exploring the journey of fintech development in Africa reveals a captivating narrative characterised by adaptability and growth. Technological advancements have served as a driving force, instigating revolutionary changes in payment systems, lending methodologies, and the availability of financial services. This ripple effect reverberates throughout the continent, leaving a discernible impact on individuals and enterprises alike.

Speaking on challenges, Saba said the rapid rise of innovation in financial technology isn’t merely a passing trend; it’s a driving force behind substantial shifts in how financial services are accessed and delivered.

“This evolution holds weight in a continent where conventional banking services often encounter accessibility hurdles, and the uneven spread of legacy infrastructure, making fintech solutions indispensable for reaching underserved populations.

“Cybersecurity threats, challenges with robust corporate governance foundations, talent acquisition and retention, liquidity management and infrastructure and connectivity issue also pose huge threats to the chances of success of Fintechs on the continent.

“Despite these setbacks, the dynamism and potential for positive transformation render the African fintech landscape an intriguing and ever-evolving arena,” he said.

To achieve development Africa desires, Saba who has built products with footprints that has spanned over 144 countries, said the continent needs as many of her Fintech startups to succeed, and collaborate sustainably to solve real problems that directly impact people’s lives, especially on the continent.

“Navigating the complexities of fintech management in Africa, the rise of fintech in Africa has brought about transformative changes in the financial landscape, offering innovative solutions to longstanding challenges. However, amidst the promise of progress, the management of fintech startups faces a myriad of challenges that demand strategic acumen and adaptability,” he said.

Paving the way forward, he emaphasised it is essential to implement strategic measures and learn from thriving companies.

“Analysing successful businesses provides valuable insights into managing the ever-changing market landscape. It is imperative that successful companies share the key factors behind their success, to foster the growth of new startups and enhance their overall chances of success.

“As the fintech culture continues to evolve in Africa, effective management will be instrumental in driving innovation, fostering financial inclusion, and navigating the complexities of the regulatory landscape. Ultimately, a commitment to transparency, accountability, and ethical practices will be foundational for shaping a thriving fintech ecosystem in Africa,” Saba said.