Home Science Technology Banks Poised to Disrupt FinTechs – Expert Predicts

Banks Poised to Disrupt FinTechs – Expert Predicts

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Lee Maina, Chief Solution Architect and Vice Leader for Fintech at Huawei, has forecasted that banks will soon disrupt the FinTech sector, threatening its primary revenue sources.

Maina urged FinTech firms to innovate and create more value in fintech-dependent sectors instead of relying on their main revenue streams. He shared these insights during a Digital Public Infrastructure panel at the Mobile Technology for Development (MT4D) forum at the recent 3i Africa Summit in Accra.

Following a rich and insightful discussion, moderator Dr. Kenneth Ashigbey asked the five panelists to predict the future of the ecosystem and how stakeholders should position themselves to drive Africa’s digital innovation.

“Looking into the crystal ball,” Maina stated, “we’re heading into a very interesting time where not only technology will disrupt our FinTech business, but also a giant is awakening—and this giant is the banks.”

Maina explained that while banks traditionally focused on high-value customers, they now see FinTechs encroaching on their territory. Banks are entering the intermediary transactions space as FinTechs are eroding their current account business.

Previously, FinTechs disrupted the banking industry by putting bank accounts in the palms of consumers through mobile money. This shift allowed people to keep money in digital wallets, earn interest, and access funds easily without paying bank maintenance fees.

However, Maina predicts a shift as banks enter this space. He anticipates that many peer-to-peer (P2P) and basic transactions, like cash ins and cash outs, will become free.

To adapt, Maina advised FinTechs to bring sectors like agriculture and insurance, which have been slow to adopt FinTech, into the fold quickly, as traditional revenue sources will soon diminish.

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