Kenyan fintech startup Fingo has launched the country’s first neobank in collaboration with Pan-African financial institution Ecobank Kenya. The launch event was attended by the country’s president, William Ruto. Fingo was founded in January 2021 to provide financial services for the fast-growing, financially marginalized youth population in Africa.
For young adults in Africa, opening an account can take several hours to days, with multiple in-person interactions and requirements to bring physical paper documents. In addition, they have to deal with expensive fees to send money and maintain their accounts. Fingo promises to deliver savings, insurance, credit and other financial services to its users. It is currently pitching cheaper transfer fees, subsidized rates at pay bills, cash-back rewards, payment links, and tailored savings plans.
The launch of Fingo’s neobank will be a significant step towards financial inclusion in Kenya. With the majority of Kenya’s population unbanked, neobanks are poised to help increase financial literacy and access to basic financial services, especially for the youth. The launch also underscores the importance of collaboration between fintechs and established financial institutions in driving financial inclusion in Africa.
