Poor infrastructure was an insurmountable hurdle for the traditional banking model in many developing markets. Branches were too expensive to install and then often too hard to reach for many. The first waves of digital banking helped to alleviate some of this pain, but only for the lucky few who had access to a stable internet supply - so typically the wealthier folk in the bigger cities.

And then came cell phones. Not smartphones, hardy Nokia’s that could take a beating and last a week on a single charge. Safaricom and M-Pesa were probably the biggest name in this game, using SMS technology to provide basic banking on the cheap, initially in East Africa but then through large parts of the continent.

This was a godsend, but the global applicability was limited since much of the value came in its ability to work around bad infrastructure. In the developed world, where this was not a problem, consumers were looking for a customer experience that could not be delivered by SMS.

That’s what makes the latest wave of African fintech much more interesting, built as they are on smartphone apps that cater to digital consumers just as discerning as those in the rest of the world. So, by leapfrogging internet banking, African digital banking is now a hotbed of mobile banking innovation.

To put this fast-tracked growth in context, I speak to Felix Duku, one of the drivers of digital banking in Ghana over the last thirty years. Using his own career as a backdrop, we talk about the stable goal of delivering a great customer experience and how he looked to deliver this through consecutive waves of technological innovation.

If you have any feedback, questions, or if you would like to participate in the show, please feel free to reach out to me at [email protected]

A full written transcript with timestamps can be found on HowtoLendMoneytoStrangers.Show

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