Hybrid Fintech Models Propel African Unicorns to New Heights
Africa’s tech landscape is buzzing with excitement as South Africa’s TymeBank and Nigeria’s Moniepoint have recently joined the elite unicorn club, each valued at over $1 billion. These valuations aren’t just badges of investor confidence; they’re testament to the successful adaptation of fintech models for a continent where nearly half the population lacks access to traditional banking services.
Both TymeBank and Moniepoint have revolutionized banking in Africa’s largest economies by simplifying financial services for individuals and businesses. TymeBank began by offering low-cost accounts and savings options to retail customers before expanding into business banking, providing crucial working capital to small enterprises across South Africa. On the other hand, Moniepoint started in Nigeria with a focus on supporting small businesses with accounts, payments, loans, and expense management tools, recently venturing into retail banking.
- Hybrid approach: Merging digital convenience with physical touchpoints
- Customer-centric banking: Meeting users where they are
- Strategic partnerships: Expanding reach through retail and agent networks
Their hybrid strategy stands out in contrast to digital-only challengers like Revolut or Chime. As Lexi Novitske from Norrsken22 aptly puts it, “In Africa, it’s a catch-22: you can’t have one thing without the other.” The need for tangible interaction is paramount in a region where cash reigns supreme and trust in online-only systems remains tentative.
“Moniepoint, Tyme, and others have figured out that you need to build physical touchpoints that interface with the mass market while maintaining the ability to push your tech through those interfaces,”
{Stephen Deng, Co-founder at DFS Lab}
This approach allows TymeBank to leverage partnerships with supermarkets like Pick n Pay in South Africa, using kiosks and ambassadors to facilitate account openings and deposits. Meanwhile, Moniepoint taps into a vast network of agents functioning as human ATMs across Nigeria, bridging urban-rural divides where traditional bank branches are scarce.
Both companies now offer comprehensive financial services, including credit facilities and business management tools. Their recent funding rounds will fuel further expansion beyond their home markets—Tyme Group is eyeing Vietnam and Indonesia, while Moniepoint plans deeper penetration in African markets such as Kenya.
The rise of hybrid models isn’t limited to fintech. As Novitske highlights, industries like telemedicine could also benefit from blending digital platforms with local touchpoints to enhance trust and streamline operations.
“We think most successful startups in Africa will master a hybrid approach.”
{Stephen Deng}
In essence, the intersection of digital innovation with physical presence is where sustainable growth thrives in Africa’s informal markets. This approach not only furthers financial inclusion but also sets a blueprint for success across various sectors on the continent.
