#24: Neobanks (African WealthTech Pt 2) - How TymeBank, Kuda & other digital banks are delivering banking services across Africa
Afrobility: Africa Tech and BusinessPlay episode
Show notes
Overview: Today we’re going to discuss the rise of Neobanks in Africa. We’ll start with reviewing Neobanks in other emerging markets, discuss the landscape of neobanks across different African regions & end with our general thoughts and outlook. This episode was recorded on Mar 7, 2021.
Companies discussed: Nubank, TymeBank, Kuda Bank, Umba, DoPay, Zazu, PiggyVest, Cowryrise, Risevest & Bettr
Business concepts discussed: Retail banking strategy, African customer segmentation strategy & low-end disruption
Conversation highlights:
(01:00) - Neobanks context and background (02:20) - Why we’re discussing neobanks (03:20) - The Nubank story: Brazil background, growth, strategy and fundraising (17:09) - Context and background on banking in Africa (17:40) - Banking context in Nigeria, South Africa and Kenya (23:50) - Opportunities and challenges for Africa’s neobanks (34:54) - Neobank startups in South Africa (35:40) - Tyme Bank deepdive (44:25) - Neobank startups in West Africa (45:10) - Kuda Bank deepdive (53:40) - Neobank startups in East Africa (56:40) - Neobank startups in North Africa (1:01:30) - International candidates to create neobanks in Africa (1:05:40) - Bankole’s overall thoughts and outlook (1:18:10) - Olumide’s overall thoughts and outlook (1:28:56) - Recommendations, small wins and open questions
Olumide’s recommendations, small wins & open questions:
Recommendations: Unscripted: Life, Liberty, and the Pursuit of Entrepreneurship (MJ Demarco), When 95% of your customers can’t afford $30/year (by Jason Njoku): Great article, it has similar themes to our uLesson pricing strategy discussion & 3 Idiots (2009 movie): Outstanding movie about friendship, creating your own path in life & education Small win: Setup my Staples Dexley chair. Gotta get the right gear if you're working from home all the time Open question: What's the best starting point of features if you want to build a consumer wealthtech app?
Bankole’s recommendations, small wins & open questions:
Recommendations: The Creator Economy (by Packy McCormick) & Frontier Fintech Substack (by Samora Kariuki) Small win: Fixed my routine and exercising regularly Other content: Invest Like The Best podcast episode on Tinkoff Bank Open question: Are you optimistic or pessimistic on the potential for neobanks? What are we missing?
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