Home News Fintech outlook-Trends that will affect online businesses in 2023.

Fintech outlook-Trends that will affect online businesses in 2023.

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Digitalisation and technological achievements observed in Africa in the past decade, have sped up the inevitable processes in fintech, changing its landscape completely.

But what are the key fintech trends and factors, which will affect online business in the near future, and what role will Kenya play?

Financial inclusion – a new start

The microfinance sector deals with an important problem of financial inclusion that has become a genuine concern in recent years.

However, we can’t but agree, that the loans are given not because a borrower simply has a smartphone, but because he or she has some credit history. But how can people start building credit profiles?

With the penetration of new vendors to Kenya, which do not use any personal data of a customer, online businesses can mitigate operational risks really well.

Using advanced technological credit scoring solutions, based on the digital footprint of the device (mobile phone in particular) fintechs can add more value to the data and increase the acceptance rate significantly as well as exclude reputational losses related to severe data breaches and help the customer to start creating its credit history

Use of randomisers

One of the newest and fastest-growing types of online fraud in Kenya is the use of special software, also known as randomisers.

The purpose of such software is to thwart existing digital device fingerprinting technologies and pass off the same device from which the fraudster applies for a loan online as a new one every time.

Fraudsters are using rather sophisticated tools, which do not let the business know if you are dealing with a new potential customer or not.

It is important to have randomisation detection technologies and methods for building an effective device ID in order to use it for the risk assessment of each client.

New regulatory requirements

Credit bureaus in Kenya are highly regulated and we can clearly see that legislation is continuing to tighten. The importance of privacy and data protection is growing immensely all over the globe and Africa is no exception.

As a way to compete successfully with traditional financial institutions, it is necessary to consider all changes in legal regulation, particularly regarding the requirements for the processing of personal data.

New conditions – new opportunities

The speed of new technologies implementation is becoming one of the main factors of market success.

The organisational set-up of fintech companies and their data-providing and processing policy have to meet these requirements.

Those players who will pay special attention to alternative data solutions will eventually win the market.

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