Financial service providers (FSPs) who serve low-income customers in Africa face a threefold challenge. Digitization is becoming the norm, both within the financial services industry and in the fast-emerging fintech sector. They wrestle with the effects of the COVID-19 pandemic and its impact on their customers. How they should adapt to these new, unfolding realities? New and varied business models are emerging from efforts to address these issues. This study describes six models, linking each to case studies: Cooperate with other FSPs; Cooperate to build and extend financial infrastructure; Cooperate with mobile money operators; Use FinTech; Establish a purely digital FSP and; Cooperate with non-financial service providers.
Impact / Outcome
An example of cooperation between an Microfinance Institutions (MFI) and FSP is that of FINCA Uganda’s partnerships with Centenary Bank and United Bank of Africa (UBA). FINCA has partnered with these FSPs to augment its service delivery to customers, via digital platforms. To this end, FINCA launched a digital campaign – dubbed #DigitalIsHere – in March 2021. The partnership with Centenary Bank will see FINCA customers transact on the bank’s Agency Banking network with over 4,000 Centre Agents across Uganda. The partnership with UBA will supply 10,000 Visa debit cards to deploy and manage 4 ATMs.
Funding sources
Public/Private
Key Metrics
Develop partnerships as a key to unlock mass market through ICT
Operating model
Fully privateYear published
01 May 2021 
Mastercard Foundation