Kenya, the Silicon Savannah, is rewriting the fintech playbook!
Covering a broad scope as follows ;
1. Mobile Money and Digital Payments
2. Digital Lending
4. Investment and Wealth Management
5. Blockchain and Cryptocurrencies
6. Financial Inclusion and Microfinance
7. RegTech and Compliance
8. Data Analytics and Artificial Intelligence
Fintechs face distinct challenges in a rapidly changing environment, with Kenya reporting the highest losses from cybercrime activities in East Africa which led to the introduction of the cybercrime bills in July 2017.
These challenges have been identified by Dr. Anton Didenko of the Bingham Centre for Rule of Law.
• Existing regulations often fail to align with new technologies, such as the legal status of Bitcoin, which remains uncertain.
• Startups find it challenging to compete against established financial institutions.
• FinTech solutions, while providing convenient access to financial services for less experienced individuals, also require additional protection due to the high risks associated with investments in virtual currencies.
• The current regulatory models are ill-suited to keep up with the rapidly evolving FinTech sector.
• Some FinTech solutions operate in a decentralized manner, posing difficulties for regulators to effectively exercise oversight and control, as exemplified by distributed ledger technology.
• There is no standardized definition of 'FinTech,' which may encompass anything from simple digitization of paper-based processes.
• The absence of a comprehensive 'FinTech regulation results in a multiplicity of rules.
• Crowdfunding lacks dedicated regulation, and regulators often lack coordination and respond slowly to regulatory needs.
• Additionally, the lack of a dedicated FinTech-oriented strategy leads to a fragmented and reactive regulatory approach.
KKCO East Africa LLP acknowledges the complexities involved in navigating such technicalities and recognizes the challenges they present. We are committed to providing expertise and support to help you overcome these obstacles and discover solutions through the following approaches.
1. Regulatory Compliance: With a wealth of experience working with several FinTech companies, we have acquired extensive expertise in this field. Our firm is well-equipped to support your company in comprehending and meeting the dynamic regulatory demands. We will guide you through the licensing procedure, establish robust compliance frameworks, and ensure your strict adherence to applicable laws and regulations.
2. Risk Management: Our team will conduct a thorough evaluation and deliver actionable recommendations to mitigate risks linked to cybersecurity and data privacy. Additionally, we will perform in-depth audits of your systems and processes to identify any weaknesses and propose enhancements. This proactive approach empowers you to bolster your security measures and safeguard customer data effectively.
3. Investor Confidence: KKCO East Africa LLP's audited financial statements instill investor confidence in fintech companies, thereby aiding in the attraction of potential investors and the acquisition of funding for your startup. Our firm will conduct an independent evaluation of your company's financial health, risk management practices, and internal controls, fostering trust among stakeholders through a comprehensive assessment.
4. Due Diligence: When seeking partnerships or collaborations with traditional financial institutions or other stakeholders, we will perform due diligence on your behalf. This helps identify any risks or red flags associated with your operations, financials, or compliance, ensuring that the partnering entity can make informed decisions.
5. Best Practices and Guidance: With our deep expertise in the fintech industry, we are well-positioned to offer you invaluable insights and guidance derived from our experience working with similar companies. We will share industry best practices, benchmark data, and strategic recommendations to assist you in effectively navigating challenges and optimizing your operations.
In conclusion, our extensive expertise in this domain will empower fintech in Kenya to surmount distinctive challenges and establish a robust groundwork for growth and prosperity in the ever-evolving fintech industry.