Fintech: Burkina and Banking Institutions Tune Their Violins for Emergence of Fintech Sector

“Creating Synergy of Actions to Promote the Emergence of Fintech and Accelerate Economic and Financial Integration in Burkina Faso”. It was on this topic that this Thursday, July 21, 2022, a meeting was held in Ouagadougou between the Fintech Federation of Burkina Faso and banking institutions.

“Faced with the inflation, security and health crises that Burkina Faso is experiencing, digital is emerging as the channel of choice for providing appropriate and affordable financial services that meet the needs of consumers even in the most remote low-income areas.” Here is how Fintech Burkina President Mahamadi Ruamba defines his vision for financial inclusion. This meeting between Fintech and banking players is about addressing with stakeholders the challenges that need to be addressed in order to provide Burkina Faso with affordable financial services through information and communication technology.

Challenges faced by fintechs

Among these problems is the problem of regulation, which does not make it easier for fintech companies to access the banking data they need to implement appropriate digital solutions for the benefit of the population, as well as the problem of financing, in order to be able to popularize them.

Mr. Ruamba believes that this cooperation is necessary in order to reach the entire population in the long term. This is despite the efforts already made by banks, microfinance institutions, e-money issuers and many other types of players. Because, while the level of adoption of electronic money by the population is palpable, the variety of services offered through mobile financial services remains limited.

All stakeholders at the second Burkina Fintech Roundtable

Burkina Faso has a fixed bank rate of 0.25% between 2019 and 2020.

“The National Strategy for Inclusive Finance (SNFI), implemented by Burkina Faso since 2019, aims to increase to 75% the proportion of the population that has access to and uses affordable financial products and funds tailored to their needs by 2023. term, it is clear that the strict bank rate (taking into account access only for adults to bank accounts) is 21.68% in 2021,” recalls Fintech President Burkina.

According to him, between 2019 and 2020, Burkina Faso was the UEMOA country with the lowest rate of change in strict banking, i.e. 0.25%. While in the states of Benin, Togo, Côte d’Ivoire, Mali and Senegal, the bank rate was 7.2%, 1.8%, 1.14%, 1.13% and 1% respectively.

For him, what has so far been offered more inclusively to the public is nothing more than the services of “deposits, withdrawals, transfers and, in particular, savings.”

Several start-ups presented on this occasion the applications they have developed in this direction, ranging from the economics and finance to the legal sector, including insurance.

Giacinthe Kabore, Capacity Building Specialist, Support for Financial Inclusion and Access to Finance for SMEs (PAIF-PME) Project

According to Giacinte Kabore, specialist in charge of capacity building for micro, small and medium-sized enterprises under the Financial Inclusion Support Project (PAIF-PME), the interest of supporting fintech companies in this initiative is to achieve concrete solutions to eliminate bottlenecks that undermine sector at the end of the work. This is done with the aim of providing the poor with financial services adapted to their context and reality.

This roundtable follows the one held with the subjects of regulation and control. Thus, Fintech Burkina is recording its second meeting of the six that it has set to achieve its goals. In particular, it should make it possible to present the Fintech federation to banking institutions, introduce its members to these institutions and solve the problems that arise during its creation and development.

Thus, the following consultations should be held with the subjects of security and compliance, identification, electronic money institutions. But also with microfinance institutions, as well as institutions and organizations providing access to financial services.

Read also Burkina: “Only 8% of economic units accept electronic payments” (Mahamadi Ruamba, President of Burkinabè Fintech Federation)