Interswitch Driving Financial inclusion in Africa: Can Africa`s Fintech Unicorn Sustain the Momentum?
| Case Code: LDEN178 Case Length: 15 Pages Period: 2002-2021 Pub Date: 2022 Teaching Note: Available |
Price: Rs.300 Organization : Interswitch Industry : Financial Services Countries : Nigeria,Uganda,Gambia Themes: Entrepreneurship, Banks and Banking , Innovation, Entrepreneurial, Strategy |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Early Initiatives
Interswitch initially focused on the consumer financial services and card payment segments and built its brands Verve and Quickteller in Nigeria. It also entered into a series of partnerships followed by acquisitions for overseas expansion in other African markets as a result of timely investments from various private equity investments..
The Next Phase of Growth
After the postponement of the IPO, Interswitch decided to further improve its offerings in the African market. The company entered into strategic partnerships with American Express and Codebase Technologies (CBT). Interswitch also introduced Quickteller Business to complement its existing Quickteller platform and broaden payment management capabilities to businesses and merchants of all sizes..
Changing scenario?
Despite the launch of various products under consumer financial services and payment cards and its recent focus on institutional markets, the company experienced a few setbacks..
Future Outlook
According to a PwC survey, Nigeria’s vast SME sector had contributed as much as 48% to the national GDP, on an average from 2015-19 and accounted for about 50% of industrial jobs and almost 90% of activities in the manufacturing sector. With one of the fastest growing emerging middle classes in the world, Nigeria represented a significant growth opportunity. However, almost 40% of the population still remained financially excluded. Furthering access to electronic payment systems for businesses had the potential to increase the contribution of SME commercial activity in economies across the continent..
Exhibits
Exhibit I: About Mitchell Elegbe
Exhibit II: Nigeria’s FinTech Landscape in 2010 -2015
Exhibit III: Interswitch’s Business Segments
Exhibit IV: Nigeria’s FinTech Landscape in 2020
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