We explore the transformation of electronic payment because of technological changes that favor this fintech innovation.

Digital wallets and contactless payments

Digital wallets emerged. And now, from Apple Pay through Google Wallet to PayPal, this is now an instrument handy for hassle-free paychecks online or in-store checkouts. Digital wallets lead the way to a new wave of financial management due to their secure and convenient substitute to cash and physical cards.

The future for digital wallets will be an expansion with more security features: authorization through biometric keys with fingerprint and facial recognition integration for further protection.

When digital wallets continue expanding internationally, they are likely to provide a diverse set of solutions for people requiring the convenience and security needed to make daily transactions safely and conveniently.

Digital wallets have transitioned from merely a payment tool; today, many financial management capabilities can be added to these platforms, helping users to keep track of their expenses, set budgets, and track subscriptions through one window. By infusing the user with all the comfort of finance while making the whole process convenient, digital wallets are to become an important way of managing finances for many.

DeFi: The end of financial freedom

Decentralized Finance (DeFi) is one of the most disrupting trends in the fintech technologies that brings decentralization and open source to the banking sector from old-fashioned centralized institutions by bringing lending and borrowing closer, and earning interest from an asset with less cost while the transparency and inclusiveness become open for use anywhere around the globe.

DeFi is still struggling with the regulatory attention and scalability issues despite its growing popularity. However, as the infrastructure of blockchain continues to grow, DeFi will be in a position to democratize finance and extend banking services to those that the traditional financial system does not serve. This emerging technology will give people control over their finances, thus creating a future with more accessible and equal financial systems, resources like FintechZoom.com DAX40 will agree.

See also: How virtual currency is supporting decentralized finance (DeFi)

AI in fraud detection and prevention

Artificial intelligence will further make the digital payment secured by increasing its capabilities in terms of fraud detection and prevention. How AI through machine learning can look at a pattern of millions of transactions, identify anomalies within milliseconds in real time, catch dubious transactions to prevent fraud on time can prevent fraud from happening in the first place. So the more it grows, so will the complicated complexity involved to prevent cyber crimes that would be-which means the need to detect and control by AI has to grow over time.

AI systems are going to learn from the new data and improve in predicting and countering fraudulent behavior. Algorithms are only going to get more and more sophisticated, allowing the financial sector to combat these changing cyber threats and provide safety in digital payments. But above all, AI technology has the advantage of securing a transaction, while enabling customers to experience a seamless life without any friction involved – fewer human interventions to interact with the system while keeping fraud detection as a basic feature in the ecosystem for digital payments.

See also: The role of 3D liveness detection in financial security

Blockchain and cryptocurrencies: The future basis

Blockchain technology is, to a great extent changing how digital payments are received; it is decentralised in nature, secure as it is transparent. Blockchain gives the world cryptocurrencies as solutions for cross-border transactions much faster and cheaper as transfers through banks. As digital currency, blockchain innovates in the form of smart contracts and DApps automation and streamlining in processes.

However, wide-scale adoption of cryptocurrencies is only possible with a massive leap in scalability and clarity in regulation. As blockchain matures, it promises to enable a wide range of applications in digital payments, thus making financial transactions more accessible and secure. Blockchain will definitely change the way payments are made, but it still needs to overcome the present limitations that make cryptocurrency not a feasible option for daily transactions.

The future of smart contracts and automated payments

Smart contracts are changing the way payments are processed in the sense that they now make it possible to automate transactions provided certain conditions have been met. Self-executing contracts, where specific criteria are encoded, reduce the number of intermediaries, thus the speed and cost. This is especially useful in such industries as freelancing or e-commerce that contain recurring payments or milestone-based transactions, where automation reduces the administrative burden and ensures prompt payment.

It is going to be more implemented due to the realization of smart contract technology as more companies realize the efficiency of making automated payments. This would lead to streamlined operations, greater transparency, and multiple industries, putting smart contracts at the foundational technology of the next generation of digital payments.

Biometric security: Ensuring safe digital transactions

With the increasing use of digital payments, security aspects are at the topmost level of users’ consideration. Biometric technology forms one such area that utilises unique physical attributes related to fingerprints, facial as well as voice recognition. Companies are likely to progressively include biometrics in their payment verification processes so as to make transactions secure enough and unauthorized access prevented in the process.

Biometric technology will continue to advance in the coming years in ways that may include verification methods that use multi-modal or multiple biometric data points at once. This will give security without sacrificing convenience – a growing demand for payment systems that are secure as well as user-friendly – and will make biometrics an increasingly important part of fintech, making payments safer in the digital payment environment.

Also read:

• Dr. Twinemanzi: The future of fintech and the broader digital economy relies heavily on collaboration
• AI is unpredictable and the destruction is going to be big in fintech — Dave Birch
• In an interview with Gerald Musoke, he has been a driving force behind fintech innovation

Open banking: Revolutionizing financial transparency and user control

Open banking is changing the financial industry through access, with user consent, for third-party developers to have access to financial data that can be used to produce customized financial products and services. Through open banking APIs, consumers have access to all sorts of financial tools-from budgeting apps to the most personalized product recommendations-to help them make more informed financial decisions.

This innovation will also trigger competition, as traditional banks are forced to be more user-centric in their services. As open banking progresses, the fintech firms will collaborate more with the financial institutions and give more power to consumers over their financial data and hence develop a more transparent and consumer-centric financial world.

Conclusion: A fintech-driven financial future;

A future where digital payments and other fintech technologies will ensure fast, accessible, and most of all, a very secure world in regard to transactional financial aspects will define the future, spearheaded by digital wallets, AI, blockchain, and DeFi. These developments bring the FintechZoom.com DAX40 Today to the forefront of this transformational power of fintech in global financial interaction, as the digital payments system continues to pave its way toward a world in which payments become a part of daily life.

However, the regulatory frameworks and cybersecurity measures need to be in tandem with innovation. A safe and reliable digital payment ecosystem can be facilitated only if the challenges associated with innovation are addressed by the fintech industry in transforming the way we are transacting, saving, and interacting with money so that it can drive the future to be empowering as well as inclusive.

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The Digital Impact Awards Africa recognizes, celebrates, and appreciates different (stakeholders) individuals and organizations spearheading the use of digital mediums to better serve their communities. In addition, DIAA further celebrates digital excellence across Africa.

From its inception in 2014, DIAA was met with immense enthusiasm, with the majority of the market recognizing it as an initiative poised to elevate the industry to new heights. Despite this optimism, questions have been raised about its sustainability. Skeptics drew parallels with earlier initiatives that, like DIAA, began with considerable market excitement, only to fade away prematurely. Yet, DIAA has persevered, defying these predictions and cementing its role in leading the industry’s progress.

DIAA has not merely weathered the passage of time, but we have come to see it significantly transforming Africa’s trajectory in digital and financial inclusion. With each passing year, DIAA continues to make groundbreaking strides, redefining expectations and leading the charge toward a digitally inclusive future for all of Africa.

There are 12 categories in the 2024 DIAA —2 short compared to last year’s. The categories for this year’s awards include; Financial Inclusion Excellence, Digital Banking Excellence, Banking Innovation Excellence, Community/MFI Banking Innovation Excellence, Fintech Startup of the Year, Fintech of the Year, Financial Services Digital Excellence, Consumer Goods & Services Digital Excellence, Utilities & Government Services Digital Excellence, Technology Services Digital Excellence, CEO of the Year (DFS), and Digital Brand of the Year.

The list includes nominees from previous years such as banks; ABSA, Centenary, Equity, Stanbic, Standard Chartered, PostBank —and their innovations, Wendi, FlexiPay, telecoms; MTN and Airtel, and government institutions, NSSF, NWSC, UMEME, URA, and URSB, to mention but few.

HiPipo has included the Fintech Startup of the Year award, and five Fintech startups—Fido, Kawu, PayTota, PesaJet, and Zimba Technologies—have been nominated, each bringing a unique innovation to the table.

We were unable to reach any of the startup founders for a comment.

• Fido: Regulated by the Uganda Microfinance Regulatory Authority, Fido offers digital individual and business loans of up to UGX1.4 million and UGX2.5 million respectively. Once your loans have been approved, the client can choose a 10-day or 30-day repayment period. Interest is charged daily —so the earlier you pay the less interest you pay.

“Fido is on a mission to empower individuals and entrepreneurs to take charge of their future by providing financial services that are inclusive, instant, and easily accessible through Fido’s innovative digital products,” Robert Muhumuza, Deputy CEO of Fido told HiPipo. “We offer both individual and business loans.”.

Muhumuza noted that for the time they have been in Uganda, they have served over 700,000 customers and disbursed money in billions.

• Kawu: Kawu has built a finance and payment solution for students. They have developed a smart card that students use to receive money from their parents for upkeep.

“In most schools, students are not allowed to have mobile phones. So, when they are in school, the only way they can access money is through cash. So what we have done is we have taken away all that process of sending money to students through teachers who then give it to them in cash by designing a smart card that allows you as a parent to send money directly to your child,” explained Steven Kakooza, Co-founder and Director at Kawu. “The child receives on his/her Kawu smart card which they can use to make payments (for goods and services) or save.”

Parents send money (via mobile money) using the Kawu app directly to their child’s smart card. In addition, the parents can also use the app, to manage their child’s expenditures and also set withdrawal limits on the card.

• PayTota: Launched in 2020, Paytota is an online payment gateway solution that allows individuals and businesses to make and accept payments from local and international buyers and sellers with payment facilitators such as Mobile Network Operators (MNOs) like MTN Mobile Money and Airtel Money, Banks, and Payment Cards Operators like Visa and Mastercard.

“We are a regulated payment gateway by the Bank of Uganda. We have a license as a payment operator for small funds and third-party systems that permits us to process payments for our partners,” Erasmus Okurut, the founder and CEO of PayTota told HiPipo in a podcast. “That is why over 400 businesses in Uganda and across the World trust us to manage their payments. We have had over 5000 transactions and processed over USD$400,000 (approx. UGX1.46 billion).”

• PesaJet: Specializing in digital lending and microcredit, PesaJet is a financial technology solution targeting underserved communities that are unable to access loans from mainstream banking solutions. They focus on three main themes; (1) Education where they give school fees to school-going children, (2) Merchant stock for small and medium-scale businesses looking for stock, and (3) Smallholder farmers who receive agriculture loans.

PesaJet has onboarded over 50 schools, serving around 500 satisfied parents and students and 2,000 farmers, and established agreements with five wholesalers. Angella Kansemiire, Product Manager at PesaJet, told HiPipo in a podcast that their customers are eligible to apply for loans between UGX50,000 and UGX200,000, which grows depending on their repayment behavior and credit history.

• Zimba Technologies: Builds core banking solutions and systems for financial institutions with a primary focus on SACCOs and microfinance institutions.

“I wanted to start a business to address the problem of capital and access to finance. I knew that SACCOs and microfinance play an important role for the people at the bottom of the pyramid as they enable them access to capital. But I believe that they can do better with the help of technology. That is how Zimba Technologies came about,” explained Isaac Were, Zimba Technologies Founder and CEO.

Zimba Technologies has developed an end-to-end solution that allows institutions to handle all their operations from managing clients and their data, loans, and deposits, and keeping track of all their books. In addition, they have also developed a mobile app specifically for the end-users that allows them to have access to their financial information, view their statements, and apply for loans. They also have a blockchain-based wallet that handles all the cashless transactions.

Launched in November 2023, Zimba Technologies currently has seventeen institutions that are using the platform, and serve over 80,000 end-users.

Uganda’s fintech sector is rapidly evolving, driven by increasing demand for digital financial services that bridge financial inclusion gaps across the country. From digital lending to mobile payment solutions, Ugandan fintech startups are transforming the local economy and setting benchmarks for digital innovation in Africa. These startups address challenges and provide practical financial solutions to underserved populations (mostly), contributing significantly to economic growth and inclusion.

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Farmpawa (from Uganda) is among the 10 semi-finalists. The other semi-finalists are from Ethiopia, Ghana, Kenya, Nigeria, and the United Kingdom.

“We are truly lucky to have become participants of this competition and getting to the semifinals,” Moses Eteku, CEO of Farmpawa told PC Tech Magazine. “With this fund, we envision expanding the reach of the company’s services by reaching more farmers in Uganda and possibly other countries, as well as refining the technologies used in the platform to ease usage for everyone.” He adds “With this funding, we would also be able to increase the amounts of training and support given to farmers improving overall production returns as well as efficiency on their farms.”

FarmPawa is a crowd-farming platform that connects farmers and investors to create mutual benefits of available agricultural opportunities in Uganda. It aims to promote sustainable investment in the agriculture sector as well as provide the farmer with the necessary instruments.

The 10 semi-finalists competing for a grand prize of USD$1 million —will participate in an Innovation Showcase at the Milken Institute’s Middle East and Africa Summit on December 5-6, 2024, in Abu Dhabi, UAE. During the event, the teams will pitch their innovations to a panel of expert judges and investors —and only three teams will be selected to move on to the final round of the prize.

The Grand Prize will be at the Milken Institute’s Global Conference in Los Angeles, in May 2025 where the overall winner will receive USD$1 million.

During the December showcase, the judges will evaluate the pitches based on the teams’ ability to deliver solutions that improve financial inclusion for under-resourced groups in emerging and frontier markets.

The Milken-Motsepe Prize in Fintech awards startups demonstrating the use of cutting-edge technologies to expand access to capital and financial services for small businesses in emerging and frontier markets.

These teams operate in nearly 30 countries across three continents, and their innovations hold the potential for significant breakthroughs in financial inclusion for underserved communities on a global scale. Over the next four months, the Semifinalist teams will test and scale their solutions, which will be evaluated for impact, scalability, and sustainability.

“By supporting these pioneering teams, we aim to foster financial inclusion and empower entrepreneurs who drive economic growth and opportunities in their communities,” said Emily Musil, Senior Director of Milken Institute. “Our prizes help identify, support, and celebrate talent to ignite the entrepreneurial spirit and empower visionaries to turn their ideas for a better future into reality.”

The 10 semi-finalists

The post Farmpawa Secures $100,000 as a Semi-Finalist in the 2024 Milken-Motsepe Fintech Prize 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.

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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.

His path began at MTN Uganda, where he was motivated by a desire to address the frustrations of long queues and inefficient services. This experience led him to pivotal roles that combined customer service with technology, ultimately positioning him at the forefront of Uganda’s fintech landscape.

In a chat with him, Musoke shares his journey and insights into product development and user-centric design, which have played a crucial role in shaping digital financial solutions that resonate with consumers.

Can you share your journey into the fintech industry and what inspired you to pursue a career in this field?

Well, my journey dates back 7 years ago when I joined MTN Uganda. My major inspiration was to make a difference after being frustrated with long queues in service centers. I occupied several roles in Customer Service and Technology, where I developed applications related to customer service and Mobile Money. Now, when you blend Customer Service, Mobile Money, and Technology, the result is innovative digital financial solutions. At this point, I was already immersed in the intersection of people, technology, and finance, and curiosity and the promises of a new career were creeping in.

Fast forward to 2021, MTN Uganda spun off its Mobile Money business to form MTN Mobile Money Uganda Limited and that’s how I ended up in fintech. I was among the pioneer employees of the new company, specifically, its product development and innovation team.

What key roles have you held in product development, and how have they shaped your perspective on fintech?

My perspective has been shaped by my personal experiences and other people’s experiences — and by my experience, I mean across the telecommunication and banking sectors.

While with MTN Mobile Money Limited, I was in charge of mapping out detailed user stories, creating product use cases, and ensuring that technology solutions met the product requirements. Oh, I also led the implementation of the UI to revamp of the current Mobile Money app to incorporate the company blue colors that you see today.

In my current role at Postbank Uganda Limited, one of my core responsibilities is ensuring that our systems and product solutions are resilient enough to support the delivery of an exciting digital experience to all our WENDI Mobile Wallet users, and be able to race up the bank to the forefront of mobile financial services, innovation and inclusion to grow and prosper all Ugandans, especially the rural populations not yet absorbed into the financial ecosystem.

See also: PostBank, MTN Uganda partner to digitize Parish Development Model (PDM) payments

Before I forget, I am a founding member of one fintech integrator whose details I prefer to keep in wraps for now and a consultant with another major event ticketing firm whose client portfolio includes government agencies and the Uganda Manufacturers Association.

Like all other business landscapes, fintech too has consumers and service providers. Beyond money transfers, payments, and loans, fintechs need to innovate further to be more inclusive for all. Transfers and payments are just a digital replacement of traditional money exchange means, and yes, they bring convenience, but the unbanked populations still need to feel the impact of fintech in their pockets. To achieve this, we must listen deeply to the needs of the masses and regulators will need to loosen up to let major players extend, for example, more credit to eligible borrowers.

Still, fintech can monetize many activities and innovations with calibrated integrations and digital financial exchanges among major players.

In short, fintech is booming, but it is a matter of time before it is disrupted by emerging technologies. We need to continue innovating and being inclusive, remembering that you can’t buy your way to the market with bad products.

How do you think your educational background has contributed to your success in technology and fintech?

My profession is Information Technology, and in between, I have studied the business process and IT re-engineering, marketing as well as product development and management from the University of Virginia. I am a skilled and passionate software developer, and I am very passionate about people. With IT, product development, and marketing skills, I can align the people’s needs and ensure the delivery of innovative financial products that meet the needs of these people.

Also read:

• • Seek careers in technology, Roke Telkom urges students
  • 10 career opportunities that are thriving with Artificial Intelligence
  • Disregard stereotypes: IT is for all, says Dona Musoke to girls and women

What are the most significant trends currently shaping the fintech landscape in Uganda?

One, Micro-lending is enabling massive consumption of microcredit with huge profit margins for major players.

InsurTech is another emerging but very promising division of fintech. It is often treated as an independent branch, but the underlying technology is fintech. Once consumer education is increased, a lot of middle-class users must be up for grabs by the players.

Group savings too is another trend that is enabling players to pool resources for growth and expansion while at the same time serving consumers.

Fintechs should also pay closer attention to international remittances. Major players are already doing this, but there is still a big gap requiring innovation. The revenue from inbound remittances is too much to ignore.

Payments have matured, but a lot of needs that are candidates for payment innovation are not yet met. For example, I should be able to cash out my work voucher for cash and give up a small percentage. The voucher can then go to the user who needs it.

Personalization is not yet being given enough attention by key players. It is being confused with credit scoring. Providers that will be able to tailor payments, loans, and money transfer products to demographics will have a greater edge. We should be looking to see what MTN’s Kirabo bundles were.

Lastly, Regulatory Technology (RegTech), is growing and will have a significant impact on fintech operations. The regulations are tight, and the providers want to cash in on fintech, so cost-effective technology that enables real fast consumer verification is going to take centre stage.

How do you see the role of technology evolving in financial services over the next five years?

Technology will continue to transform the way we interact and manage our finances. Service delivery channels will become more digitized and widespread. Many brick-and-mortar locations will continue to be phased out in favor of ATMS and banking agents accepting and dispensing cash.

What challenges do you believe fintech companies face today, particularly in developing markets?

One is a very tight regulatory landscape that can only be navigated by well-determined and serious players. The same too limits what even capable players can offer. For example, transfers and lendings are limited to very low amounts, leaving huge amounts to be expended only by traditional banking institutions.

Secondly, high poverty levels especially in rural areas. This leaves smartphones mostly in the hands of a few consumers. Without smartphones, many consumers cannot self-onboard on some fintech platforms, and reaching them with agents also increases the costs of service production.

How important is collaboration between tech companies and traditional financial institutions for fostering innovation in fintech?

This relationship cannot be overemphasized. Traditional financial institutions are the custodians of cash that reflects on all our E-wallets. Collaboration in key areas such as AML best practices saves each a regulatory burden. But more importantly, tech companies are enablers of financial institutions. I think that is why we are now talking about fintech. Tech companies provide technology solutions that enable banks to move this money securely and bring access channels closer to banks’ customers through enabling digital banking.

This relationship was birthed with the advent of ATMs and networked, branch banking and sealed with the introduction of mobile and online banking. It is not to be severed anytime soon.

Can you walk us through your typical process for developing a new digital product? What methodologies do you prefer?

First, any product must satisfy a user’s needs. In fintech, the need is financial in nature or enables a financial product to be offered. So, the typical journey starts with ideation, basically brainstorming about the best ideas, then goes through persona targeting and customization. All this is on paper and helps develop unique selling features for the product. Use cases and customer journeys are then mapped and technology solutions are developed and documented.

Software development is activated, followed by internal testing, user acceptability, and usability testing, and then the product is moved to production. Of course, that is high level, but there are some nitty-gritty I didn’t mention. After production, different business functions activate product monitoring and maintenance tasks, but the product must be monitored for maturity progress.

How do you prioritize features during the product development cycle, especially when resources are limited?

Quite honestly, in many cases, budgets are constrained —but a combination of lean and MVP methods is helpful. Products are developed for certain users and only they can be authoritative regarding what is most important for them. In cases where users can’t be reached individually, such as in mass consumer products like WENDI, data is utilized to identify probable high-volume journeys depending on user behavioral insights extracted. Additionally, strategic objectives, competitor direction, and market demands can help you prioritize.

What role does user feedback play in your product development process, and how do you gather it effectively?

User feedback is very important in product development. Products are built for users, and they must be involved from inception. This is the most effective means to get user feedback. An MVP product is an effective tool as users have a near real-world experience of the product.

To further incorporate this feedback, agile methodologies are key in the development process.

Are there any innovative technologies or approaches that you believe will revolutionize the fintech sector in the near future?

Agility will enable fintechs to bring working products to the market faster. Also, people-centered innovation will be key in innovating and building cutting-edge products “by people and for the people.” Additionally, strategic relationships with key stakeholders and more importantly, the traditional banking institutions, will provide much-needed synergies in the sector. Lastly, cloud computing and AI will enable even small innovators to cut out a segment in the industry.

See also: Fintech and bank partnerships will deepen financial inclusion — Stephen Mutana

What advice would you give to startups looking to enter the fintech space today?

Follow people-centered innovation and don’t go all in. Use lean and MVP principles, as well as proven frameworks like AIDA during product development. Remember, you can’t buy your way to the market with a bad product.

Written in collaboration with Douglas Kikonyogo (X, @doug_kikonyogo)

The post In an Interview with Gerald Musoke, he Has Been a Driving Force Behind Fintech Innovation appeared first on PC Tech Magazine.

The role of digital assets in DeFi

Decentralized finance is built on the foundation of blockchain technology, which enables the creation of trustless and transparent financial systems. These systems operate without intermediaries, allowing users to interact directly with each other in a peer-to-peer manner. In this context, digital assets serve as the backbone of the DeFi ecosystem, providing the necessary liquidity, security, and accessibility for various financial services.

1. Providing liquidity for DeFi protocols

Liquidity is a critical component of any financial system, and it plays a vital role in the success of decentralized finance. Digital assets are used to provide liquidity to various DeFi protocols, enabling them to function efficiently and effectively. For instance, decentralized exchanges (DEXs) rely on liquidity pools to facilitate trading between different digital assets. These pools are funded by users who deposit their digital assets in exchange for earning rewards or fees. Go to Immediate Luminary app and make an account there.

2. Securing the DeFi ecosystem

Security is a paramount concern in the world of decentralized finance, where smart contracts and automated protocols govern financial transactions. Digital assets play a crucial role in securing the DeFi ecosystem, as they are often used as collateral in various financial applications. For example, lending and borrowing platforms allow users to borrow funds by locking up their digital assets as collateral. This ensures that the lender is protected in case the borrower fails to repay the loan.

The use of digital assets as collateral not only secures the DeFi ecosystem but also enables the creation of innovative financial products and services. By leveraging the value of their digital holdings, users can access a wide range of financial services, from loans to synthetic assets, without the need for traditional financial intermediaries. This has opened up new opportunities for financial inclusion, especially for individuals and businesses that are underserved by conventional banking systems.

3. Facilitating cross-border transactions

One of the most significant advantages of decentralized finance is its ability to facilitate cross-border transactions in a fast, cost-effective, and secure manner. Traditional financial systems often involve multiple intermediaries, leading to delays and high transaction costs, especially in cross-border payments. Digital assets, on the other hand, enable direct peer-to-peer transactions across borders, eliminating the need for intermediaries and reducing transaction costs.

The rise of DeFi applications

The adoption of digital assets has spurred the development of a wide range of decentralized financial applications, each offering unique solutions to traditional financial challenges. These applications are built on blockchain platforms, leveraging the security, transparency, and programmability of distributed ledger technology. As a result, they can offer financial services that are more efficient, accessible, and equitable than their traditional counterparts.

Also read:

• • Bitcoin’s role in reducing the economic impact of political instability
  • Cultivating digital assets for long-term passive income
  • A look into the next-gen of crypto wallets: innovations and advancements
  • The maturation of cryptocurrency: A growing established order in financial markets

Decentralized lending and borrowing

One of the most popular use cases in decentralized finance is lending and borrowing. Decentralized lending platforms allow users to lend their digital assets to others in exchange for earning interest. Borrowers, on the other hand, can access funds by providing digital assets as collateral. This peer-to-peer lending model eliminates the need for intermediaries, reduces costs, and provides borrowers with more favorable terms.

The transparency and automation of these platforms also ensure that the lending process is fair and efficient. Smart contracts automatically enforce the terms of the loan, reducing the risk of default and ensuring that lenders receive their due interest. Furthermore, decentralized lending platforms are accessible to anyone with an internet connection, making it easier for individuals and businesses in underserved regions to access credit.

Decentralized exchanges (DEXs)

Decentralized exchanges (DEXs) have emerged as a powerful alternative to traditional centralized exchanges, offering users greater control over their assets and transactions. DEXs operate without a central authority, allowing users to trade digital assets directly with each other. This peer-to-peer trading model eliminates the risk of exchange hacks and ensures that users maintain full custody of their assets.

In addition to enhanced security, DEXs offer greater transparency and privacy compared to centralized exchanges. All transactions on a DEX are recorded on the blockchain, providing a transparent and immutable record of trades. Moreover, DEXs do not require users to disclose personal information, protecting their privacy and reducing identity theft risk.

Therefore, the impact of digital assets on decentralized finance cannot be overstated. They have become a cornerstone of the DeFi ecosystem, providing the necessary liquidity, security, and accessibility for a wide range of financial applications. As decentralized finance continues to evolve, the role of these digital assets is likely to expand, driving further innovation and adoption. The future of finance is decentralized, and digital assets are at the forefront of this financial revolution, paving the way for a more inclusive, transparent, and equitable financial system for all.

See also: How will the future of the global economy be affected by cryptocurrency?

The post How Virtual Currency is Supporting Decentralized Finance (DeFi) appeared first on PC Tech Magazine.

Modern online financial solutions have become increasingly popular since the COVID-19 epidemic, and this trend has a huge chance of continuing in the future. Financial services can be transformed by ML-based development enterprises using digital fintech. For instance, recharges and remittances. Additionally, it has democratized Internet trading and expanded digital banking access.

However, to enhance customer services and their global reputation, banks and other financial institutions must offer financial stability for efficient operation.

What are fintech software services?

As earlier defined, fintech can be described as companies that leverage technology in the management of or the provision of financial products and services. The phrase refers to a developing sector that facilitates the needs of both consumers and companies. Fintech offers a limitless range of benefits, such as mobile banking, insurance, cryptocurrencies, and investment applications.

The fintech industry is now very immense, and the sector will keep growing for several more years. The fact that many conventional banks actively invest in, acquire, or collaborate with fintech software companies is one-factor influencing modern software development for fintech. Those are techniques that well-established banks can use to meet tech-savvy customers’ requirements while promoting the sector.

Benefits of fintech for businesses

According to estimates, fintech investment reached its pinnacle in 2021 at $92 billion, representing a 20% increase over the prior year’s investment.

Infrastructures for payment digitization are increasingly prominent among forward-thinking firms that prefer state-of-the-art technology solutions. But what are the primary commercial draws that justify this expansion of fintech firms? There is a list of the perks that fintech software development company offers, some of the most prominent are;

1. More resource accessibility

Businesses may accept payment for services and products most seamlessly thanks to algorithms generated by fintech solution providers. Therefore, it is safe to say that fintech development is one of the core forces behind corporate growth.

Businesses and startups benefit from their amazing intuition when discovering resources, distribution avenues, and investing platforms. For instance, clients must use electronic payment technology to buy goods or services over the Internet; as a result, an instant payment application is essential to the core of the e-commerce process for a successful transaction to occur.

Contrary to conventional banks, the fintech sector has fewer entry barriers, making it a productive field for all business sectors to flourish. With open banking APIs, non-banking corporations may quickly collaborate with suppliers and deliver an applicable product.

Companies with a solid understanding of fintech software development can own a successful product in this market.

2. Experts recruitment

Businesses that offer fintech software developer jobs within their companies have a diverse range of professionals within the same fields. Because finance has become a hot topic among users, companies demand experts who can run these applications.

3. Business process optimization

According to recent surveys, companies employing digitized financial assistance are three times more likely to witness revenue boosts. By methodically optimizing financial transactions and investment procedures, service providers who own Fintech products contribute to the proficiency and growth of several organizations.

A drastic infrastructure overhaul is no longer necessary to adopt new financial technology. Firms can effortlessly profit from the top-notch optimization that comes with it at a fair cost.

4. Better retention rate for businesses

Giving customers a personalized experience in the economic sector is a standard objective of fintech software companies. It is the main rationale behind its explosive development throughout the term. This statement was supported by a Kearney research of competitor banks, indicating that convenience is a key selling component for fintech products.

Businesses can give their customers a better shopping experience and increase customer retention using various generic and sector-specific fintech software development. The Global App Trends Report supports this idea, which claims that 18% of fintech users return after a week and more than 10% after a month.

Fintech development offers clients personalized experiences using artificial intelligence (AI) and Big Data services and increases customer retention through simplicity and speed. Due to their prior investments and financial circumstances, customers can competently access services and products from corporations.

Also read:

• • Revolutionizing maritime operations: The power of crew management software
  • Advantages of investing in online school management software
  • Aping manual data acquisition with automated bookkeeping software
  • Optimizing talent acquisition: The role of hiring software in improving candidate experience

The international market is gaining a radical boost with the help of finance-based development technologies. Moreover, it is becoming more and more entangled. Furthermore, consultants are continuously trying to benefit from technological advancements to increase client conversion. Upcoming developments will play a major role in funding full ecosystem advancements. Thus, fintech software companies can go beyond their core capabilities. Additionally, they deliver valuable services and a state-of-the-art consumer experience. Hence, businesses are recommended to utilize fintech software development within their agencies to accelerate success levels.

ALSO READ: OP-ED: ARCHITECTING CYBERSECURITY FOR UGANDA’S FINTECH SECTOR

The post Top Perks of Fintech Software Development for Modern Businesses appeared first on PC Tech Magazine.

The suspension was a result of a terminated bank partnership, which Chipper Cash had relied on for facilitating its cross-border transactions. This unforeseen challenge not only disrupted the fintech’s operations but also left its users without access to remittance services.

Since then, the company has been determined to take whatever action necessary to rectify the situation. And now, the company has finally resumed its operations in the US which has been confirmed by the company’s CEO and Co-Founder, Ham Serunjogi. “We are delighted to announce that Chipper Cash is fully operational and excited to serve you once again in the United States,” he said in a press statement that was released on May 6.

According to the company’s press statement, they have transitioned to a new US banking partner and further enhanced their services.

“Thank you for your patience as we worked to transition to a new US banking partner and further enhance our services,” said Serunjogi. “Our team has worked tirelessly to upgrade our platform, ensuring that we offer you an unparalleled transaction experience.”

With the revision, the newly optimized account top-up experience now provides users with their own dedicated bank account details, making it easier than ever to send money from the US to their family, friends, and business partners across Africa.

Serunjogi noted that transitions like these can sometimes be challenging, but rest assured their users that their dedicated support team will assist all users every step of the way.

The post Chipper Cash Resumes Services in the United States appeared first on PC Tech Magazine.

The suspension was a result of a terminated bank partnership, which Chipper Cash had relied on for facilitating its cross-border transactions. This unforeseen challenge not only disrupted the fintech’s operations but also left its users without access to the promised remittance services.

Chipper Cash, known for its innovative approach to financial solutions across Africa, had quickly gained traction in the region, achieving near-nationwide coverage within just a year of operation. However, the setback in the US market has posed significant hurdles for the company’s growth trajectory.

Despite initial assurances of a February resumption for its services, Chipper Cash users are still unable to utilize the platform for international money transfers from the US. This has led to frustrations among the African diaspora, who relied on the fintech’s promise of affordable and efficient remittance options.

The challenges faced by Chipper Cash in late 2022 further compounded the situation. The fintech experienced a notable 37.5% decrease in its valuation, reflecting the uncertainties and difficulties encountered during its expansion efforts. Additionally, the company had to implement workforce reductions, signaling a period of adjustment and revaluation.

For many users, Chipper Cash represented a beacon of hope for simplified and accessible financial services tailored to the needs of the African diaspora. Its innovative approach promised to bridge the gap between the US and Africa, enabling seamless money transfers at competitive rates.

However, the current suspension of its international money transfer services from the US has left many questioning the future of their financial transactions with Chipper Cash.

The company’s management has remained relatively quiet on the specifics of the situation, leading to increased uncertainty among its user base.

The post Why Chipper Cash is Facing Challenges in US Market Expansion appeared first on PC Tech Magazine.