African Fintech's Next Leap: Smarter Money Tools in Real Time

Imagine your banking app alerting you in real time that saving just a bit more this month could fund your December vacation, instead of simply showing you overspent after the fact.

That's the future Marcello Schermer envisions for African fintech. As head of international expansion at Yoco, a South African digital payments startup, he believes the continent's financial technology sector is ready for its next evolution.

Africa's fintech boom has already transformed daily life across the continent. Half of all transactions now run on digital rails, up from almost zero just years ago. The sector attracted $1.37 billion in funding in 2024, representing over 40% of all startup investment on the continent.

The numbers tell a remarkable story. Africa now hosts more than 5,000 startups, with fintech accounting for over 30% of them. In cities like Lagos, smartphones have become the engines of trade, powering everything from street markets to growing businesses.

But Schermer says the heavy lifting of digitizing payments is largely done. Now comes the interesting part.

"For a long time, most financial tools have been backward looking," Schermer explained in a recent interview. Your investment app showed last month's performance, your spending app revealed where your money went weeks ago.

The new wave will be different. These tools will nudge users toward smarter choices in the moment, offering guidance that used to be available only to wealthy clients with personal financial advisors.

The Ripple Effect

This shift matters because financial health touches everything else in life. When people have better tools to earn, save, invest, and spend safely, they can fund education, support families, and build futures.

The innovation is happening in creative ways across different markets. In some countries, fintechs are helping people access crypto because it's more stable than local currency. In others, they're aggregating multiple mobile wallets so users can see all their money in one place.

Remittances represent another breakthrough area. Fintechs are making it easier and cheaper for people to send money home or across borders, keeping more money in the pockets of families who need it most.

The competitive landscape is intense, with traditional banks and new players all fighting for customers. That competition is translating directly into better products, lower prices, and more tailored experiences for both consumers and merchants.

Central banks across Africa are also modernizing their payment systems to be more inclusive and technologically advanced. These regulatory projects move slowly, but once they land, they'll unlock new possibilities for the entire ecosystem.

The foundation has been built. Now African fintech is ready to become a true financial partner, helping millions of people make smarter money decisions every single day.