The Financial Stability Board divides fintech into five broad categories: payments, clearing and settlement; deposit, lending and capital raising; insurance; investment management; and market support. Fintech has made most inroads in the area of payments and less in the others.
So far, it’s the more open financial markets that have seen fintech develop rapidly. One example is the e-payment system M-Pesa, which operates in Kenya, Tanzania and elsewhere, and is one of the biggest fintech success stories since its emergence just a decade ago. By effectively transforming mobile phones into payment accounts, M-Pesa has increased financial access for previously unbanked people. The permissive stance of the Kenyan central bank allowed the sector to develop rapidly in one of East Africa’s most developed economies. Read more. Source | World Economic Forum