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@JacquelineJumah @FinLagos @EmekaOkoye @FinLagos @jamesagada @dejiolowe
@JacquelineJumah @FinLagos @EmekaOkoye @FinLagos @jamesagada @dejiolowe
If banks start thinking of their C&I groups as B2B tech providers - including to their own retail/consumer banking units, the business case is there. They provide the tech infrastructure (via APIs) to companies creating great consumer experiences
The banking unit keeps earning their 8% interest on deposits as their internal revenue recognition figure but the product, service and deliver models change.
An example of this is @Finserve_Africa which essentially has become Equity's Tech arm. I'm talking about this in a few hours with @CFI_Accion
Here's what Jenga's APIs looks like 
And how they (should) think about the different banking units becoming a tech company
And I don't totally agree with @EmekaOkoye saying they lending/payments/banks haven't been disrupted yet. There might just be a big enough pie that lending companies like Branch and Tala haven't needed to steal all the bank customers (yet). This is a bad sign for banks
The mobile money networks have essentially proven there's a biz case for banks becoming tech companies. Banks still hold the escrow accounts (in most places) and earn interest off the escrow, but the telcos/DFSPs run the consumer experience. This greatly expanded the pie.
Other payment companies like @GooglePayIndia, @NALAmoney in Tanzania, @WechatPay are starting to do the same thing with MUCH better consumer experiences. The big players like @WechatPay and @AntFinancial are buying/becoming banks. Smaller players will partner with banks
@gojektech started as ride sharing, they built out a distribution network and trust, and then started doing cash-in, cash-out for banks. They're a mobile, bank agnostic, agent-banking network. They will become a bank (if regulation permits) because 8% on deposits is a lot of $$
On a smaller scale, @SafeBoda, a Ugandan-born ride-hailing company, recently hired a "Director of FinTech". The implications of that should be clear. @PathaoBD @GozemAfrica are doing the same.
In the US, @SVB_Financial bought @StandardAPI to offer API banking to tech companies and they've done really well with this model. This is coming. Everywhere. I just think it's a matter of when and who builds it.
