A new report by AppsFlyer and Google, which analysed more than 140 million installs across 3,000 finance apps found Ghana recorded a staggering 200% spike in finance apps install in 2021/2022 to top the chart in Africa.
The report said the entire continent recorded an average of 25% growth in finance apps install with Nigeria seeing a relatively low 33% increase, South Africa – 11% and Kenya’s recording a very modest 5% growth.
Mobile attribution platforms, AppsFlyer and Google note that over the past few years, micro and macro conditions have proved conducive to the growth of Africa’s fintech industry.
“With mobile penetration in Africa expected to reach 50% of the region’s population by 2025, and with a significant young population, it should be no surprise then to see that many users have turned to mobile apps for loans, payments, cryptocurrency, and other financial services – paving the way for rapid growth,” read their report in part.
“In 2021, more than $1 billion was invested into fintech startups, representing more than half of all total funding received that year, and the majority of African unicorns are fintechs” it said.
As more finance apps are installed in Africa, AppsFlyer and Google note that app marketers have quickly jumped on the fintech bandwagon with significant investments.
There was a 3% jump in finance app install advertising spending across the continent in 2022, following a spike in 2021 that continued through early 2022.
“This YoY (year on year) increase is seen on Android and represents the amount of money invested in campaigns aimed at driving users to the app stores to download an app. The trends described above are also seen here with a 180% surge in spend between Jan 2021 and March 2022, but a 40% drop ever since driven by global macro conditions,” the report shows.
Souring macroeconomic conditions included a post-COVID digital cooldown that has impacted fintech globally, the war in Ukraine, and a global economic downturn.
However, fintech remains a favourite for investors in Africa. Increased access to smartphones, greater awareness of the benefits of digital banking, and a need for more convenient and secure ways to manage money which has led to a proliferation of new finance apps on the continent is not slowing down.
In addition to mobile money transfer apps like M-Pesa and Airtel Money, there has also been a surge in the number of other financial apps available in Africa, including those for budgeting, savings, and investment.
These apps are providing new opportunities for people to manage their finances more effectively and are helping to make banking and financial services more accessible to people who may not have had access to them previously.
Some of Africa’s most popular financial apps include Chipper Cash, Carbon and Paystack. These apps are widely used for making payments, sending money and tracking expenses.
The growth of financial apps in Africa is also positively impacting the continent’s economy, helping to increase financial inclusion and promote economic growth. More importantly, it is allowing Africa’s huge unbanked population to access banking services.