Business Tech Africa talks to Andy Jury, Group CEO, Mukuru about how inclusion in financial products is a precursor to growing development in Africa
Most economic analysts will tell you about the great untapped potential on the African continent, and it is equally abundantly clear that there are large underserved populations in Africa yet to be empowered to unlock their potential.
I wanted to understand Andy’s take on the progress of bringing people into financial services effectively but first wanted to know a bit more about himself. Andy Jury has been an observer and more recently a participant in the financial services landscape in Africa and I asked him about his background and what brought him into the Mukuru family?
“I had a fairly eclectic background”, He says, in I’ve done a range of different things, I worked in a bank, worked in consulting, I spent a long time at the erstwhile business known as Edcon, which was an amazing place to learn and covered financial services, credit, retail and more” he replied.
“I didn’t get out of bed to sell two extra HP pencils or try to figure out how to get somebody to buy an extra pair of socks”, he comments.
“And so when the Mukuru guys came knocking, I’d never heard of the business before but I loved the idea of leveraging simple to use everyday tech to give people transformative experiences.
Andy believes that fintech has been a game-changer on the continent. Even given that we are far from having arrived at a place of full formal financial inclusion. This means leading financial services companies underpinned by the best fintech technology must continue to champion digital transformation across the continent’s financial ecosystem.
Inoperability A Key Aspect of Financial Inclusion
Andy says this starts with a deep commitment to interoperability. “In our world, interoperability means you are agnostic towards the type of money that people use. So, whether it’s cash, digital wallets, or cards, it starts with opening your network to all the players in the ecosystem”.
“In our business, this philosophy underpins our belief in a “two-sided network” wherein customers and enterprises alike stimulate flows through initial payment interactions, which in turn stimulate subsequent flows and through network effects increase the speed at which the payment fly-wheel turns”! He says.
I ask Andy about the reality on the ground in Africa, where most transactions today are still done in cash and how he sees this changing and if there are ways to improve financial service uptake to help transform the economic landscape?
Andy says he sees the situation as an opportunity not a problem and believes that with the right approach, the unbanked majority of the continent can be brought into financial inclusion.
“When considering the bigger picture of unlocking the untapped growth potential in Africa, the vision of a leading financial services provider needs to extend beyond the non-negotiable interoperability and encompass the vast opportunities presented by the continent”, he says. “Africa continues to be a huge focus for us at Mukuru precisely because it is a massive untapped growth area, and so the orientation is geared towards continuing to monetise this potential”.
“We are constantly asking ourselves: How do we continue to capture more and more of the existing, and growing, remittance flow and secure it in a formal context? This requires constant innovation and a finger tightly on the pulse of what the customers are saying and asking for. This cannot be overstated”.
Digital Inclusion a Journey
In a sector awash with well-used jargon, digital transformation will continue to be front of mind for the Mukuru team.
Mukuru has witnessed a massive shift in the numbers of people adopting a digital store of money and interacting and transacting with the digital economy according to Andy. With many starting with even basic transactions and over time migrating to use more financial services.
“This should always remain front and centre – walking the journey of financial inclusion with customers, but, as already mentioned, only if it is built on giving customers solutions to their existing problems. There is little logic in creating a shiny service and hoping to create demand” Andy says.
No discussion about the flow of money in Africa is complete without understanding the importance of mobile wallets. From our perspective, working towards having a wallet in each market where we operate ensures seamless operations. This is strategic in addition to being pragmatic, as it enables a unified customer experience, which – when good – drives customer loyalty and trust.
“ You can’t get work formally if you don’t have a bank account in a vertical” andy says, “and so we go from there, we try to build this capability where we try help people send, store or spend”, He comments
So, Remittance is a magnificent hero product for us because it’s a gift that keeps on giving.
You generally have to do it fairly regularly.
Remittances are a Growing and Critical Component
By facilitating the flow of remittances and fostering financial inclusion, Mukuru works to capitalise on this dynamic area of financial transactions that drives sustainable growth in the region, while also playing a big part in ensuring critical funds reach families for basic requirements such as food, education and housing while helping these customers take incremental steps on their digitisation journeys.
So, Remittance is a magnificent hero product for us because it’s a gift that keeps on giving.
You generally have to do it fairly regularly.
The fintechs that go the furthest in terms of unlocking Africa’s immense potential will be the ones that remain deeply committed to driving digital innovation and fostering financial inclusion while capitalising on the vast opportunities presented by this diverse, vibrant continent.
“We believe that by embracing true interoperability, digital transformation at its most granular level, and by investing in strategic partnerships, next-generation financial services platforms will continue to be trailblazers in the evolving financial landscape in Africa. The potential that will be unlocked will be nothing short of awe-inspiring”, Andy concludes.
