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The Development of FinTech in Nairobi: Contributions to Financial Inclusion and Barriers to Growth

Van Cooten, Jack LU and Blythin-Hammond, Joshua LU (2017) MGTN59 20171
Department of Business Administration
Abstract
This in-depth study explores: why Nairobi has developed into a renowned FinTech hub; what the barriers are to further growth for FinTech companies; and how FinTech is perceived to be contributing to the broadening of Financial Inclusion.

Our findings our that Nairobi has emerged as a Financial Technology (FinTech) hub due to the pioneering success of M-Pesa, the inadequacy of incumbent financial institutions and Kenya’s conducive business and regulatory environment. However, FinTech companies in Nairobi face a number of challenges inhibiting their growth, such as: shortages of managerial and software-development talent, poor access to data and information, and insufficient levels of credit and investment. In regard to financial... (More)
This in-depth study explores: why Nairobi has developed into a renowned FinTech hub; what the barriers are to further growth for FinTech companies; and how FinTech is perceived to be contributing to the broadening of Financial Inclusion.

Our findings our that Nairobi has emerged as a Financial Technology (FinTech) hub due to the pioneering success of M-Pesa, the inadequacy of incumbent financial institutions and Kenya’s conducive business and regulatory environment. However, FinTech companies in Nairobi face a number of challenges inhibiting their growth, such as: shortages of managerial and software-development talent, poor access to data and information, and insufficient levels of credit and investment. In regard to financial inclusion, FinTech is undoubtedly allowing many formerly excluded Kenyans to access financial products and services. However, these Kenyans tend to be on the middle of the economic pyramid, and also owners of smartphones, whereas those at the bottom of the pyramid remain financially excluded. There is also evidence that some FinTech can actually do harm, notably due to a lack of regulation, which therefore permits companies to offer easy-access, high-interest credit to financially illiterate consumers. (Less)
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author
Van Cooten, Jack LU and Blythin-Hammond, Joshua LU
supervisor
organization
course
MGTN59 20171
year
type
H1 - Master's Degree (One Year)
subject
keywords
FinTech, disruptive innovation, financial inclusion, emerging markets, finance, technology, entrepreneurship
language
English
id
8917326
date added to LUP
2017-06-21 09:43:54
date last changed
2018-01-26 09:52:13
@misc{8917326,
  abstract     = {This in-depth study explores: why Nairobi has developed into a renowned FinTech hub; what the barriers are to further growth for FinTech companies; and how FinTech is perceived to be contributing to the broadening of Financial Inclusion.

Our findings our that Nairobi has emerged as a Financial Technology (FinTech) hub due to the pioneering success of M-Pesa, the inadequacy of incumbent financial institutions and Kenya’s conducive business and regulatory environment. However, FinTech companies in Nairobi face a number of challenges inhibiting their growth, such as: shortages of managerial and software-development talent, poor access to data and information, and insufficient levels of credit and investment. In regard to financial inclusion, FinTech is undoubtedly allowing many formerly excluded Kenyans to access financial products and services. However, these Kenyans tend to be on the middle of the economic pyramid, and also owners of smartphones, whereas those at the bottom of the pyramid remain financially excluded. There is also evidence that some FinTech can actually do harm, notably due to a lack of regulation, which therefore permits companies to offer easy-access, high-interest credit to financially illiterate consumers.},
  author       = {Van Cooten, Jack and Blythin-Hammond, Joshua},
  keyword      = {FinTech,disruptive innovation,financial inclusion,emerging markets,finance,technology,entrepreneurship},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Development of FinTech in Nairobi: Contributions to Financial Inclusion and Barriers to Growth},
  year         = {2017},
}