In one of the panel discussions, an interesting topic, “Pathways to Funding for Fintechs” was discussed. During the session two seasoned founders; William Luyinda; CEO of Ezy Agric and Eng. Chrispius Oyancha; CEO of ClinciPesa, and Brenda Amony; Portfolio Relationship Manager, Deal Flow Facility at FSD Uganda, gave insights on the art of fundraising.

Securing funding for a startup is one of the most critical steps for a startup to succeed. However, raising funding is very challenging.

“Securing financing is a critical step in scaling a startup. However, determining the right type of capital for your startup can be challenging,” says Eng. Chrispius Oyancha; CEO of ClinciPesa.

The key to securing funding is to strategize properly on revenue sources to pursue, understand the unique challenges and risks of the fintech industry, and ensure compliance from the outset. Suppose founders have the right preparation and a solid pitch. In that case, they can attract investors who not only provide capital but also understand the industry and can help push your startup forward.

Firstly, it’s better to understand the unique landscape of fintech funding. Unlike other industries, fintech startups are in a highly regulated space. Fintech startups rely on a maze of financial regulations and compliance standards —this will influence how investors regard them.

Luyinda and Oyancha shared insights into the type of capital, understanding the role of fundraising, picking the right investors, persistence & resilience in fundraising, etc., that founders should consider when seeking funding.

Selecting the right capital for your startup

When selecting capital for your startup, it’s important to understand its cost and how it will affect your business in the long run. “All forms of capital have pros and cons so don’t rush. Take time to understand what comes with what and evaluate which one to go with based on your objectives,” said Oyancha. He warned founders to be cautious of the terms set by investors, as desperate founders may find themselves tied down by unfavorable conditions.

Founders can select between equity investment, debt capital, sweat equity, grants, etc., to fund their startups. Oyancha says equity may dilute ownership but can provide the necessary growth capital, whereas debt retains ownership but requires steady cash flows. “Debit is a cheaper and more affordable source of capital for startups in fintech or technology compared to equity,” he said. “In the early stages, grants may be the best option.”

Adding to Oyancha’s remarks, Luyinda said when it comes to raising equity, it is important to think about the long-term effects on ownership. “If a founder raises USD$500,000 (approx. UGX1.8 billion) in exchange for 10% equity, they must consider how this dilution will impact their stake in the company as they grow,” he said.

Luyinda also pointed out that while grants may seem like an easy and “free” form of capital, they come with their challenges. He cautioned that grant funding, while helpful, often requires a long time to mature and may not always align with a company’s focus. Especially in challenging ecosystems like Uganda, where access to capital is limited, founders are often tempted to chase after any available grant, even if it doesn’t fit their core strategy. He said the key is to ensure that the grant aligns with the business’s long-term vision —calling on founders to resist the temptation to pursue every available funding opportunity and instead focus on those that align directly with their goals.

Understanding your role in fundraising

Fundraising is a complex process. “No matter how much support founders receive from transaction advisors or other experts, they must remain at the center of the process,” said Luyinda. He noted that founders must understand how to structure funding and how different funding sources such as debt, equity, grants, etc., impact the business. For instance, understanding cash flow and how debt in different currencies will affect the bottom line is essential for making informed financial decisions.

Picking the right investor

A common mistake many founders make is partnering with investors who do not align with their business model or industry. “It is crucial to seek investors who have experience in your sector,” says Luyinda. An investor unfamiliar with e-commerce will likely fail to grasp important metrics such as customer acquisition cost, retention rates, or lifetime value (LTV). These metrics are essential in evaluating the potential of an e-commerce business. Without this understanding, the investor may undervalue the startup or make unreasonable demands that do not reflect the business’s true worth.

“Choosing the wrong investor can lead to misaligned expectations. A founder must strive to find someone who can recognize the value in their business and negotiate a fair middle ground,” says William Luyinda; CEO of Ezy Agric.

One powerful takeaway from the conversation was the importance of persistence in fundraising. In most cases, the majority of investors founders pitch to will say no, however, Luyinda and Oyancha noted that eventually —they will find an investor who shares the founder’s vision. “From the majority, founders only need one “yes” to move forward,” said Luyinda. “Once that connection is established, the rest of the process becomes much smoother.”

Oyancha also noted that persistence is key —as the process of closing the deal is usually lengthy and can span years. “You need patience, as closing a deal can take years —over three plus years,” Oyancha noted.

Board structure

Another key discussion revolved around the composition of the board. Equity investors often demand to be on the company’s board. Luyinda and Oyancha share a hard-earned lesson: “Not every investor is equipped to serve on a board.” They said many investors may have advanced degrees or business credentials, but they might lack the practical experience to build the startup from the ground up. This lack of understanding can create friction.

To avoid these challenges, they said ensuring that at least one board member has real entrepreneurial experience is vital. “Having a former founder or experienced business leader on the board can help bridge the gap between the entrepreneur’s vision and the investor’s expectations,” Luyinda explained. “This individual can empathize with the challenges of scaling a business, hiring a team, and implementing complex processes, all while providing valuable insights that align with the founder and investor perspectives.”

Fundraising is an art that requires strategy, patience, and an intimate understanding of both the business and the investor landscape. Founders must take the time to ensure they are speaking to the right investors, structuring deals that make sense for their long-term vision, and building a board that can provide both guidance and empathy. By focusing on these key areas, they can navigate the fundraising journey more effectively and position their businesses for long-term success.

The post The Art of Fundraising: Insights From Seasoned Founders appeared first on PC Tech Magazine.

The conference gathered industry leaders, innovators, and professionals to understand the evolving digital landscape and harness its potential. It also featured keynote speeches and discussions —and in one of the keynotes by Pheona Walls Nbasa; Managing Partner at Nbasa & Co-advocates discussed “Maximizing Collaboration through Community, Platforms, and Resources.”

Collaboration isn’t just a buzzword in today’s digital era, but a critical driver for innovation, and growth. During Nbasa’s keynote at the FITSPA annual conference, her discussion centered on this very theme, delving into the power of collaboration, and how organizations and individuals can work together to amplify their impact. She said;

Collaboration is not just about making friends or seeking comfort in company. We collaborate for impact.

Nbasa highlighted several principles crucial for effective collaboration, starting with inclusive engagement which involves bringing together stakeholders from different sectors, industries, and demographics. A notable example she gave was the creation of a women’s platform at FITSPA; FITSPA Women —a testament to the power of inclusion in fostering collaboration.

FITSPA Women is a community of women in technology and digital Financial Services. It was established to empower and support women in the sector. Through various activities, FITSPA Women aims to promote gender diversity and inclusion in the industry and support women in achieving their full potential.

Nbasa discussed the two types of collaboration; which are vertical and horizontal collaborations, illustrating them through examples from the fintech sector. Vertical collaborations occur when a larger organization partners with a smaller one—for instance, a large bank teaming up with a fledgling fintech startup. In these cases, the larger entity helps lift the smaller one by sharing resources, knowledge, or access to markets. Horizontal collaborations, on the other hand, happen between organizations on the same level, working together as equals to drive mutual benefit.

She noted that both types of collaborations are crucial in today’s business environment, where interdependence can significantly enhance outcomes.

Effective teamwork relies on values that encourage diversity and openness, in communication to achieve objectives through collaborative leadership and resource pooling. A fundamental element of teamwork involves participation by combining different viewpoints and ideas to tackle intricate problems. The fintech sector showcases this by engaging experts, from healthcare, agriculture, finance, and various other industries. By leveraging these alliances companies can create solutions that cater not only to the financial domain but also to broader social issues. This focus, on inclusivity fuels creativity. Amplifies the effectiveness of working as a team.

Open communication and trust are the pillars that uphold successful partnerships. Without transparent dialogue and mutual trust, collaborations are prone to fail. Clear and consistent communication ensures that all parties feel valued and can contribute their ideas freely. Trust, in turn, creates a safe environment where stakeholders can work together authentically. When communication is strong, misunderstandings are minimized, and teams can align more effectively toward common goals. As Nbasa emphasized, shared objectives are crucial—collaborators must be working toward the same end. Aligning goals from the start not only creates unity but also prevents conflicts that may arise from divergent priorities.

Leadership is another essential element that shapes the success of collaboration. Rather than dominating the conversation, collaborative leaders, like those at FITSPA, empower others to take the stage and contribute meaningfully. This approach enhances the collective impact by allowing a range of voices and ideas to flourish. In addition, to this benefit of collaboration is the aspect of resource sharing where combining assets and expertise can result in cost savings due, to economies of scale When resources are distributed fairly and effectively during a collaboration the outcomes are magnified enabling the group to accomplish greater things collectively than they could achieve alone.

Leveraging platforms and social media for collaboration

Platforms such as Slack, Trello, and even open-source platforms help teams work together seamlessly, irrespective of geographical boundaries —Nbasa stressed —noting that they allow for easier knowledge sharing, task management, and even the co-creation of products and services.

Social media can also be a great way to spread the message and reach out to people, especially those who share the same or a similar vision as you have, said Nbasa, adding that it is a means of bringing together otherwise unrelated people across industries. For instance, she said, there could be groundbreaking innovations that come out of partnerships between technology startups and areas like healthcare or legal services that provide a new way to solve problems.

Data and resource optimization

Data and resource optimization was another key discussion in her keynote. “Data is key in shaping wise decisions in industries such as finance and technology,” she said. Nbasa shared a personal experience from the early days of Airtel Uganda, where a data-driven decision to switch off an unpopular service led to a surge in sales. This example underscored how important it is to leverage data analytics for optimized resource allocation and decision-making.

In a broader sense, resource optimization is about making the most of shared knowledge and expertise within a community. Whether it’s through specialized clusters, like those set up by the Law Society, or collaborative partnerships within the fintech space, sharing resources leads to greater efficiency and success.

Nbasa’s keynote at the FITSPA 6th annual conference was clear —collaboration is the key to unlocking collective potential. Whether through inclusive engagement, open communication, or shared resources, working together can amplify impact in ways that individual efforts cannot.

As Nbasa eloquently put it, “Would you rather be a big fish in a pond, or an ordinary fish in the sea?” The answer lies in the willingness to collaborate—to step beyond personal ambitions and work toward a common goal. By doing so, individuals and organizations can create space for growth, innovation, and, ultimately, greater impact.

The post Pheona Walls Nbasa at FITSPA Conference: Collaboration is the Key to Unlocking Collective Potential appeared first on PC Tech Magazine.

The conference gathered industry leaders, innovators, and professionals eager to understand the evolving digital landscape and harness its potential for their organizations. Among the industry leaders was Dr. Twinemanzi Tumubweine, the Executive Director of National Payments at the Bank of Uganda, who in a dynamic session titled “Unpacking the Power of Collaboration to Deliver a Robust Digital Economy,” shared key thoughts on regulation, artificial intelligence (AI), cybersecurity, and the importance of collaboration within the fintech ecosystem.

Dr. Twinemanzi stressed that regulators must strike a delicate balance to promote innovation without stifling growth. Speaking about the future of AI in fintech, he urged regulators to prioritize risk management over strict laws. “AI that drives progress should be created in ways that reduce risk and allow fintech to thrive in an environment that promotes technological advancement,” explained Dr. Twinemanzi. He believes fintech and other digital financial services can scale without unnecessary barriers. This fosters a regulatory environment that promotes growth and innovation. This will help propel Uganda’s digital economy to new heights.

Meanwhile, a key theme in the conversation was the issue of cybersecurity, an area where the government and fintech companies have a role to play. Dr. Twinemanzi argued that a collective effort to tackle cyber threats is critical and that individuals must play their part too, by protecting their data and devices. “The first line of defense against cyber threats and fraud lies with the individual,” he said, noting that people often overlook basic security measures. He said that most people don’t even read the terms of use for new devices, underscoring the need for a more vigilant and proactive approach to personal cybersecurity.

He emphasized the need for smarter and more proactive personal cyber security. Although government regulations and industry standards can provide a framework for strong cybersecurity, he said “responsibility is shared” —and only collective consciousness and action can achieve a secure digital economy.

See also: OP-ED: Building a robust cybersecurity readiness for Africa’s digital future

There was also a light consensus in the discussion on the fintech ecosystem, especially how the embrace of collaboration rather than competition is important. Dr. Twinemanzi advocated for partnerships in the fintech sector, especially through collaborative platforms like FITSPA. He motivated the stakeholders in the fintech industry to regard themselves not as rivals but rather as allies to achieve specific objectives.

“Fintechs have an ample market, which can only be exploited satisfactorily if they change their focus beyond their current income streams,” he stated. In his opinion, if fintech companies partner and move away from siloed perspectives, they will all play a part in fostering a better and more inclusive financial ecosystem.

He highlighted how collaboration works in unlocking the growth potential that is wanted: individual firms and the sector as a whole. In his words, it is collaboration that will provide the answer to how innovations are created and how a digital economic environment that will be positively impacted by regulators, fintechs, and consumers is created.

Dr. Twinemanzi’s insights offered a compelling reminder that the future of fintech and the broader digital economy relies heavily on collaboration. By working together—across industries, between government bodies and the private sector, and with a shared commitment to innovation and security—the dream of a thriving digital economy can become a reality.

As Uganda’s fintech landscape continues to evolve, the emphasis on collaboration will play an integral role in ensuring that growth is sustainable, inclusive, and secure. Dr. Twinemanzi called for collaboration over competition, balanced regulation, and shared responsibility in cybersecurity providing a roadmap for building a robust digital future.

See also: OP-ED: Architecting cybersecurity for Uganda’s fintech sector

The post Dr. Twinemanzi: The Future of Fintech and the Broader Digital Economy Relies Heavily Collaboration appeared first on PC Tech Magazine.

The conference has gathered industry leaders, innovators, and professionals eager to understand the evolving digital landscape and harness its potential for their organizations. The keynote speaker, Mr. Dave Birch, a commentator on digital financial services, shared his vast knowledge and insights in the fintech sector —among the things he shared was AI in the financial sector, the future of banking run by robots, digital trust, and quantum computing, among other things. Here’s our takeaways from his keynote;

AI replacing humans in key decision-making roles

Artificial intelligence (AI) is the most professional in many specialized areas and could be released only in few years from now. In the health department, AI is installed for medical use and is even more effective than health experts in the visual scan portion. While now practiced to validate medical availabilities, the speed with which AI is progressing suggests that such backup of human intervention is less and less certain. However, the real dislocation occurs in the wave of AI that comes later: digital agency.

The artificial intelligence market has already shifted its direction as today’s hot topic is the development of “people agents”—autonomous bots that are capable of performing human tasks. These types of bots will not only assist but also do away the need for human input in cases of analysis and probability-based decision-making. It won’t be long before companies need active inputs from humans as sources of decision making even those who are in top management.

AI in financial services: revolutionizing compliance

Machine learning and AI have focused their efforts on influencing the compliance aspect of the financial services industry. Compliance is essentially a given in the case of financial institutions for they are always guided by legislation, however for a business such as anti-money laundering and know-your-customer compliance it is an expensive and lengthy task. By and large, 50% to 70% would be spent by fintech companies on compliance activities—not on the provision of services or products in the industry.

There are significant cost advantages in the compliance management systems including external outsourcing of these activities. Processes, which include filling AML forms and KYC checks against customers, can be performed by bots, thus saving the time of human personnel who can concentrate on economic activities that create more value. However, well crafted, systems like ChatGPT do not yet have the proficiency to conduct those functions autonomously due to the shortcomings including hallucinations- distortion in which pictures predicted by AI bear no truth. Such hallucinations in the financial services sector, where facts matter a great deal, may lead to huge fines upon some convincing regulations.

The true disruption: AI for consumers, not just banks

Many financial institutions see AI as a cost-cutting and efficiency-improvement tool for their existing business models. Nevertheless, such a view lacks depth. Its core disruptive quality is not on improving managers’ decision-making, but on changing the way customers make financial decisions. With the blooming of technology companies such as Google, Apple, and Facebook that are making AI more widely accessible, it will also have a radical effect on how mass market consumers manage their money.

For example, many people do not achieve optimal or maximum returns on their savings accounts because they do not have time or knowledge or too much administrative work needs to be done to earn the best interest. These days, most consumers have been rendered passive by the force of inertia when it comes to making financial decisions and instead tend to park large amounts of money in interest-bearing accounts that do not yield very much. On the other hand, there are no limitations to AI. For example, one consumer’s personal AI could always check checking accounts while sitting in the office, and if any of them earns more interest than the other, the funds in the performing account will be moved around to maximize the profit.

This type of AI-assisted financial management changes everything in the banking industry. For example, these bots will determine everything right down to which credit card to pay making use of the maximum rewards and minimum fees including card rank and simply optimizing interest on account for the bots making use of excessive payoff of interest rate cards.

The age of robot-to-robot transactions

As financial markets open up to artificial intelligence, we cannot rule out the possibility of robot-to-robot transactions taking place. Just in the future, all banks will more likely stop advertising their services and products to people as they will be targeting the bots managing their clients’ finances instead. The use of labels or any form of persuasive selling would be a thing of the past. The data was the central focus of the Bots, the amount of fees, and the expected output were the only determinants. Therefore the products being developed will be targeted towards these measures.

The first problem would be how to distinguish if a given transaction has been initiated by a human or a robotic market participant. For these and other reasons, it will be hard to tell the measure as these machines grow in strength. New solutions would be required on the side of banks for example to prove why certain activities that they perform are genuine in the way that they do not allow the bots operating inside banks to assist fraudsters and other people to con banks.

In summary, the realm of artificial intelligence in the financial services of the future is not one of the distant castles in the air, but clusters of clouds whose outlines clearly can be seen. From ensuring bookkeeping to customer service assistance, AI is about to change the dynamics of the industry. Banks who apply AI technology in only ways of cutting down costs and achieving minor modifications of existing services are simply ignoring the reality.

The post AI is Unpredictable and the Destruction is Going to be Big in Fintech — Dave Birch appeared first on PC Tech Magazine.