FinTech Observations from The Farm

This past April I was invited to participate in a lecture at the Stanford Graduate School of Business in Palo Alto, California. Stanford University has the nickname “The Farm”. It is called the Farm because the university is located on land that was once the Palo Alto Stock Farm, owned by the Stanford family. This farm, where horses were bred and trained, became part of the land conveyed to establish the university. 

The Farm is an apt name for Stanford for another reason, like a well cultivated and managed farm that produces an abundant crop yield, Stanford is a bountiful farm producing innovative leaders and businesses.

The lecture I was part of focused on an African Fintech, Paga. Paga is a payments and financial services ecosystem for Africa. They focus on helping consumers and sellers pay, get paid, and access financial services. They also offer their platform as a service to third-party partners.

Stanford lecturers Steve Ciesinski and Howie Rosen presented a business case on Paga.  They asked students to consider where and how Paga should expand beyond its initial Nigerian market. After the case was presented, I joined Tayo Oviosu, Paga Founder and CEO for a discussion with students.

Tayo is an African fintech pioneer and visionary, visionary who has successfully brought his vision to market. He is a Stanford Graduate School of Business graduate and has found a way to combine the best of Stanford with his knowledge of the Nigerian market to make Paga a success.

As I listened to tayo describe the journey he has taken with Paga two words came to mind: perseverance and agility. Tayo and his team have overcome multiple challenges relying in their determination to success and finding the ability to recognize when they need to adjust their business operations while maintaining a clear focus and commitment to their long-term goals.

It was gratifying to see Tayo discuss Paga and the journey he and his team have taken I have been art of that journey, through my company Global technology Partners (GTP). We started working with Paga over 5 years ago. Now part of Onafriq, GTP was and is the processor for their prepaid debit card.

It was great to reconnect with Tayo. And we did more that reminisce about the past, we talked about the future and key trends shaping African Fintech. Specifically, we discussed the following trends among ourselves and with the Stanford students:

• Payments and Remittances remain a significant opportunity; success will rely on the ability to scale in a fast and secure manner.

  
  

• Embrace Disruptive Technologies or become disrupted by them. AI and Stablecoin are two disruptive technologies that need to be part if your technology set.

  
  

• Navigate the Regulatory Maze – compliance and licensing need to be integrated into your business model and operations. Failure to do so will lead to delays in advancing your business. On the other hand, successful integration can turn compliance and licensing into competitive assets.

  
  

• Funding - Overall funding for African Fintechs is down from prior peak years. There is adequate finding for start-ups, but funding for growth is lacking.

  
  

• Market Expansion – new markets need not be limited to other African markets.

The US with its significant African diaspora is a prime expansion market.

I want to thank Steve Ciesinki for inviting me to Stanford and Tayo for sharing the stage with me. It was a fun experience that I hope to repeat soon.