#24: Neobanks (African WealthTech Pt 2) - How TymeBank, Kuda & other digital banks are delivering banking services across Africa

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?

We’d love to hear from you. Please email info@afrobility.com to share feedback or propose topics you’d like to hear.

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