EP1034: Where Digital Banking Meets Africa’s Inclusion Gap

Fayza Benayad, Global Partnership Head, Fimple

Digital banking provider Fimple is focused on using cloud-native, API-first banking technology to expand financial access for underserved SMEs and NGOs across Africa. Its composable banking architecture, real-time payments, digital onboarding and embedded finance capabilities can help financial institutions deliver more accessible and tailored services. Puja Sharma of IBS Intelligence speaks to Fayza Benayad, Global Partnership Head at Fimple, about the role of digital banking in advancing financial inclusion and how partnerships between banks, FinTechs, NGOs and technology providers can accelerate access across African markets.

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SPEAKER_00 0:02

I'm Pooja Sharma of IBS Intelligence, and you're listening to the IBS IViews podcast. With me today is Feza Minayat, Global Partnership Head at Fimple. For our listeners, Fimple is a cloud native API first banking technology company that provides composable core banking platforms for banks, fintechs, and financial institutions. It enables organizations to rapidly build, launch, and scale digital financial products through its flexible financial function architecture. Today we are diving into driving financial inclusion through digital banking for SMEs and NGOs in Africa. Welcome to the podcast, Feza.

SPEAKER_01 0:43

Thank you, Puja. Wanted to talk more about the topic, you know, which is financial inclusion. Actually, the financial inclusion is no longer just about providing bank accounts. It's more about giving SMEs and entrepreneurs, also underserved communities, access to the financial tools they need to grow. Also, they need to create jobs and contribute to economic development across Africa. So digital transformation presents a unique opportunity in the African market.

SPEAKER_00 1:14

Pessa, how can banks leverage platforms like FIMPA's cloud native API first core banking solution to expand financial access for SMEs and NGOs across underserved African markets?

SPEAKER_01 1:27

Traditional banking infrastructure often makes launching new products expensive and time consuming. As a result, many SMEs and NGOs remain underserved because serving them isn't always commercially attractive using legacy systems. So with the cloud native API first platforms like Fimple, banks can rapidly introduce specialized lending products. They can also introduce digital current accounts, microfinance solutions, and grant management accounts without rebuilding their entire infrastructure. It's because our platform is modular and composable. Institutions can integrate local payments provider, digital identity service, credit bureaus, and mobile wallets and government platforms through APIs. And this flexibility is what actually allows banks to reach rural communities, small businesses, NGOs, and informal enterprises much faster, why significantly reducing operational costs? So I would say ultimately technology enables banks to serve customer segments that were previously difficult too costly to reach.

SPEAKER_00 2:53

What are the biggest barriers preventing SMEs and NGOs from accessing financial services? And how can digital banking platforms such as yours help bridge these gaps?

SPEAKER_01 3:03

Actually, the biggest barrier are often not lack of demand, but there are issues like limited financial history and lengthy onboarding processes and manual documentation, as well as geographic distance from branches and products that simply don't meet the unique needs of uh especially SMEs and NGOs. So many financial institutions also rely on legacy systems that slow innovation and make launching specialized services very difficult. So digital banking platforms address these challenges by automating onboarding, digitizing um KYC processes, and supporting alternative uh data sources for credit assessment, and also enabling banks to create flexible products to different customer segments. So by reducing operational complexity and improving customer experience, banks can finally serve businesses that may previously have been excluded from the formal financial sector.

SPEAKER_00 4:15

How can Fimple's composable banking architecture enable financial institutions to rapidly launch tailored products for SMEs, micro enterprises, and nonprofit organizations today?

SPEAKER_01 4:27

One of the greatest uh strengths of composable banking is actually agility. Instead of replacing an entire banking ecosystem, institutions can assemble the capabilities they need using independent services. For example, a bank could launch a digital account for SMEs, working capital financing, invoice financing, merchant acquiring, um, multi-currency accounts, uh, etc. So each service can be introduced independently and integrate through APIs. This significantly shortened time to market and allow banks to continuously innovate as customer needs to evolve. Rather than waiting for months or even years to launch a new offering, uh, through agility, institutions can respond to market opportunities much faster.

SPEAKER_00 5:26

What role uh real-time payments and digital onboarding capabilities play in advancing financial inclusion and how platforms like Fimple can support these initiatives?

SPEAKER_01 5:37

It's absolutely fundamental. If opening an account requires multiple branch visits and paperwork, many potential customers simply won't complete the process. Digital onboarding enables customers to open accounts remotely using digital identity verification and automated compliance checks. Meanwhile, real-time payments improve cash flow for SMEs. They allow businesses to receive and make payments instantly, and also reduce in delays that can affect day-to-day operations. So for NGOs, faster payments mean quicker distribution of aid and more transparent fund management. So FIMPL supports these capabilities through its real-time transaction, processing engine, and uh API-first architecture, seamless integration with payment infrastructure and digital channels.

SPEAKER_00 6:35

And how can banks use modern digital banking technology to reach previously unbanked businesses and communities? Especially that we are talking of Africa here.

SPEAKER_01 6:45

Actually, reaching underserved populations requires meeting customers where they already are. So across Africa, mobile devices have become the primary channel for financial services. Uh modern banking platforms enable institutions to deliver services through mobile applications, agency banking as well, fintech partnerships, uh, embedded finance, and digital ecosystems, uh, rather than relying solely on physical branches. Because if we do that, it's gonna be harder. Um, technology also allows banks to personalize financial products based on customer behavior, also making services more relevant and accessible for microbusinesses, for farmers as well, entrepreneurs, and community organizations. So you can say that the goal isn't simply digitization, it's creating banking experiences there that are inclusive, also affordable and accessible, especially in Africa.

SPEAKER_00 7:52

Looking ahead, how can partnership between banks, fintech, NGOs, and technology providers like Fimple accelerate Africa's financial inclusion agenda?

SPEAKER_01 8:03

No single organization of those can achieve financial inclusion alone. Banks, they bring trust, regulatory expertise, and access to capital. From the other hand, fintechs contribute to innovation and customer-centric experiences. And NGOs provide deep community knowledge and understand the specific needs for the underserved population. Then technology providers like FIMPOL come to supply the flexible digital infrastructure that connects all these uh stakeholders. So through open APIs and collaborative ecosystems, these organizations can build solutions much faster than working independently. So the future of financial inclusion lies in partnerships that combine technology, policy, and local expertise to create sustainable economic uh opportunities across the continent of Africa. So at the end of the day, financial inclusion isn't just about opening more bank accounts, it's about helping a small business owner to get working capital when they need it, or enabling an NGO to distribute funds quickly and transparently. So technology is what makes that possible.

SPEAKER_00 9:27

We are talking about financial inclusion, we are talking about SMEs and NGOs, especially in African uh countries. What's the stance on women entrepreneur and uh how fintech platforms like FIMPL are accelerating that uh to empower women as well when it comes to uh women in finance or fintech, especially in African continent?

SPEAKER_01 9:50

Of course, in in Africa, many women entrepreneurs they still face challenges around the I would say collateral, uh limited credit history, documentation, etc. Yeah. So what how Fimple helps this is basically uh we have API first um composable architecture, way cheaper than wiring the whole, for example, core banking system, even though we provide the whole core banking system, but we provide it in a composable uh architecture, which means even smaller financial institutions can benefit from it. Not only bigger banks are or they have access to new technology, also smaller businesses they can have access to this technology as well. Feza Banayat, global partnership head at Fimple.