Ideas & Debate

CMA plans fintech hub to drive financial innovation

A screen shot of the M-Akiba mobile traded bond. Fintech companies use software and digital platforms to deliver financial services. FILE PHOTO | NMG
A screen shot of the M-Akiba mobile traded bond. Fintech companies use software and digital platforms to deliver financial services. FILE PHOTO | NMG 

Over the past decade, the Kenyan financial sector has witnessed a proliferation of new innovative technologies such as M-Pesa that have driven growth in financial services uptake exponentially.

Despite Kenya’s renowned stature as a hub of innovation, the country’s capital markets have sub-optimally utilised the opportunity presented by fintech innovations to push capital market activity to the next level.

It is worth noting that the impact of fintech has been more pronounced in other sectors of financial services such as the banking industry and the insurance industry than has been seen within the capital markets.

This sub-sector is now increasingly engaging alternative fintech business models and utilising financial technology to benefit from fintech innovations.