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Why African banks are doing better than fintechs – Uzoma Dozie 



The Chief Executive Officer of Sparkle, a digital bank, Mr. Uzoma Dozie, has said that African traditional banks are doing far better than fintechs in terms of delivering value to their customers. 

Dozie stated this in a medium blog post entitled “I am Betting on Banking, Not Fintech”. According to him, the fintechs, in their bid to acquire more customers, are jettisoning value creation, which is the core of banking operations. 

Dozie, a banker, who later founded Sparkle, which could also be described as a fintech company, believes that anyone who has fintech experience, without banking experience, will struggle to genuinely scale and make a real impact or create meaningful value for their customers or their investors.  

He, however, acknowledged that the fintechs are doing well in serving the unbanked and underbanked as well as in making banking easier.  

According to him, the fintech narrative that permeates all tech and finance discussions is quite superficial and global VCs have been “hypnotized by and bought into the narrative, with their chequebooks”.  

Dozie noted that fintechs won the UX battle and they won the dialogue with potential customers as they made banking “a little more palatable, a little sexier to the masses.” According to him, those are important because banking is mostly “unsexy; risk management; data management; cybercrime; and corporate and financial governance — all deeply unsexy to the huge majority of people.”  

But in a twist, Dozie claimed that the fintechs seem not to be well secured and lack good corporate governance, unlike the banks. 

According to him, keeping customers’ money safe is the absolute bare minimum when it comes to banking because a financial services institution is literally storing value and by doing that properly, it creates more value.  

Dozie recently told Naiarmetrics in an interview that Sparkle, though using technology to deliver financial services, is a bank and not a fintech.