New technology to balance disruption and risk mitigation

The dynamic landscape of financial technology, commonly known as Fintech, is continuously evolving to create disruptions and revolutionize traditional finance sectors, while simultaneously serving as a crucial tool to minimize and manage regulatory risks. Ian Merrington, the CEO of the Cape Innovation and Technology Initiative (Citi), shed light on this transformative phenomenon in a recent interview with CNBC Africa ahead of the launch of the FinTech Academy in South Africa. Merrington highlighted the rapid wave of digital disruption and innovation that is sweeping across various industries, with Fintech being at the forefront of this revolution. He emphasized the challenges faced by boards of directors and executives in making strategic decisions influenced by rapidly advancing technology, often lacking the necessary expertise and deep understanding of the tech-driven changes in their markets. To address these challenges, the Cape Innovation and Technology Initiative has partnered with FinTech Circle, an organization based in London, to bring in top experts in areas like regulatory technology, wealth tech, and Fintech. The collaboration aims to offer a comprehensive curriculum through a two-day deep immersion masterclass, enabling participants to delve into the underlying technologies driving disruption and facilitating informed decision-making. One of the key concerns raised during the interview was the accessibility of such advanced systems, considering the time constraints many professionals face. Merrington acknowledged the issue but expressed optimism regarding the increasing accessibility of technology in Africa, driven by the widespread adoption of mobile devices. He highlighted the significance of basic feature phones and the innovative applications in Fintech, such as USSD-based services and mobile lending platforms like JUMO, which leverage mobile usage data for credit scoring. The CEO emphasized the transformative role of mobile technology in reaching underserved populations and potentially displacing traditional banking models with more inclusive and accessible financial solutions. He noted the growing connectivity across the continent, facilitated by advancements in mobile and internet services, which continue to bridge the gap in accessing technological products. Despite the progress in enhancing accessibility, Merrington acknowledged that challenges persist, particularly in terms of internet connectivity and the value chain of technology products. The ongoing efforts to improve mobile and internet infrastructure aim to address these barriers and expand the reach of Fintech innovations across Africa. In conclusion, the convergence of Fintech innovations and regulatory technology represents a dual opportunity for businesses in Africa to embrace disruption while effectively managing regulatory risks. The collaborative efforts between industry experts and organizations like the Cape Innovation and Technology Initiative are poised to empower professionals with the knowledge and tools needed to navigate the rapidly evolving Fintech landscape.