Learn All About Alternative Lending: Emerging Markets

INTRODUCTIONThe world’s next 1 billion middle class consumers are coming online in Africa. Mobile money is enabling Africa’s transformation to a digital economy through the delivery of affordable financial services. Africa has been a global leader in innovating payments technologies and has important lessons for fintech practitioners.COURSE OVERVIEWWhat does the emerging markets fintech opportunity look like? What is the potential here?There has been a lot of hype around U.S. fintech, an industry now saturated with thousands of companies doing lending, insurance, payments, regulation, and wealth advisory. I believe the industry will begin to consolidate. VC investment into U.S. fintech has slowed down recently but is picking up in emerging markets. African, Latin American, and Asian markets are ripe with opportunity: the world’s 2.5 billion unbanked consumers are coming online. In Africa alone (from Irrational Innovations):Over 85% of people have a mobile phone
Only 20% have access to financial services
$4 trillion consumer and business spending
$528 billion credit gap for Small and Medium Enterprises (SME’s)Commercial banks, microfinance institutions (MFI’s), and traditional lenders have not yet adapted to digital finance. The mobile generation in developing countries is growing quickly and needs financial services now - smartphones and mobile money enable the low-cost delivery of financial products to this captive audience. Emerging markets fintech is the trillion dollar opportunity of this decade. According to the GSMA's 2017 State of the Industry Report on Mobile Money :690 million registered mobile money accounts in emerging markets, a number that’s rapidly growing
Mobile money transactions worldwide topped $1 billion per day
Generating $2.4 billion in direct revenueWhat does the emerging markets fintech landscape look like? Who are the major players?Emerging markets fintech landscape
Vertical - Innovations
Lending