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What are the next steps for Fintechs?

Charity is the Head of Operations at MOMBO Sacco. She joined us on the onset of March 2022 bringing to the table years of experience and a wealth of knowledge in finance and the credit industry. We asked Mrs. Charity to give us her thoughts on the state of the industry’s landscape & what brands can and should do to achieve success.

What are the next steps for Fintechs, and what’s the best way to stay relevant in the future?
The democratization of financial services due to technology has shifted the power to the consumer. The fintech of the future must grapple with the following questions, therefore:

What will Fintechs need to crack to remain in business?

In my opinion, information remains key to fulfilling customer needs. The fintech must address the pillars of personal finance, thus Consumer Mindset, Consumer Skillset, and Consumer toolset. In designing the MOMBO Sacco app, it was clear that our customers wanted to understand how to save consistently and conveniently. They needed essential skillsets that would help them make relevant decisions on the application without a manual leg—they finally required tools to help them with their daily planning regarding their finances.

In the era where technology has given scale to finance business. Do you identify as a technology company or a financial services company first?

The answer to this will squarely drive the organization’s mindset and allow the organization to provide a wholesome solution aligned to customer needs. At MOMBO Sacco, we identify as a technology company first.
Psychology of money (delayed gratification versus instant gratification). What’s the impact of consumerism on borrowing? How do we get people to save more for their goals?
Evidently, the intersection of these two opposing concepts is the sweet spot in which our business operates. MOMBO Sacco invested in and deployed growth hacking to experiment with customers’ intuitive needs and obtain more insights that would guide the customer in making an intelligent savings plan.

What is the role of the regulator in all this? Is the regulator an obstacle or an enabler?

I hold the opinion that the regulator is your friend. They create market confidence in our products and assurance of our governance structures in our sector specifically. Having been the first licensed digital Sacco in Kenya, we relied on regulatory forbearance to drive our innovation.

Is operational scaling and the engineering layer as crucial as the UX and scoring engine?

MOMBO Sacco has deployed investments that ensure that we put the customer at the center of all our processes, thereby ensuring a simple and intuitive user journey, consistency of our offering in terms of TAT, and the ability to scale without disruptions. I would also put a premium on tech talent because that will ensure the success of a quick-to-market approach.

With the use of Big data and consumer information, how important is Data protection and privacy issues?

I’d say data protection is the most critical aspect. That must be assured and handled responsibly to create market confidence in fintech. Data protection regulation has ensured that the consumer is king and there is no data without the consumer.

How important is the building of ecosystems?

In my opinion, the winner synthesizes a holistic customer lifestyle and builds solutions around the customer’s preferences, whether regarding savings, travel, holidays, borrowing, advisory, etc. MOMBO Sacco has been very keen and intentional to grow its ecosystem incrementally. In my opinion, this is what creates sustainability for shareholders in the long term.
By Mombo Sacco | March 06, 2022 | 4 min read |
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