In recent years, fintech has emerged as one of Africa’s most dynamic and transformative sectors, redefining how millions access financial services.
From mobile money platforms in East Africa to digital Neobanks in West Africa, these companies are challenging traditional banking models and expanding financial inclusion. Fintechs and digital financial services have remained the most funded across the African continent by value and deal count.
Amidst the growth and success stories, a common narrative persists that for a fintech to succeed, founders must come from a banking or financial services background. Many argue that without prior experience, founders risk destroying value through pure ignorance.
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In a 2023 post on X (formerly Twitter), by serial entrepreneur and one of Africa’s most respected tech investors, Victor Asemota, he argues that inexperienced fintech founders in Africa often destroy value through ignorance.
He used anecdotes of ex-bankers succeeding by prioritizing quality customers and realistic updates over hype, contrasting with novices chasing unviable credit models.
Part of his post reads,
“Very Unpopular Opinion and likely to be stoned for this: Fintech founders MUST have some experience in banking or financial services background first before they are funded. Many fintech neophytes destroy so much value not out of deliberate actions but just pure ignorance.”
This post saw replies with many sharing the same sentiment, personal anecdotes, and examples that reinforced his point about the value of domain expertise in African fintech.
The Banking Experience Edge
The sentiment that banking or financial services experience provides an edge in African fintech holds weight for several reasons. Founders with prior exposure to banking understand risk management, regulatory compliance, and operational processes.
These are critical in a sector where trust and stability underpin user adoption and investor confidence. For example, someone who has navigated the complexities of loan disbursement, anti-money laundering protocols, or payment clearing systems will inherently be better equipped to design viable fintech products.
One notable example is Uzoma Dozie, founder of Sparkle and former Chief Executive Officer of Diamond Bank. With years of experience running one of Nigeria’s most prominent commercial banks, Dozie entered the fintech space with a clear understanding of the structural gaps within traditional banking. Sparkle was built to merge the stability and regulatory discipline of conventional banks with the agility and user-centric design of digital platforms, offering individuals and businesses a modern banking experience without sacrificing compliance.
A similar blend of banking expertise and innovation can be seen in Babs Ogundeyi, co-founder of Kuda Bank. With experience spanning auditing and banking operations, Ogundeyi brought a disciplined financial mindset into the creation of one of Africa’s fastest growing neobanks. His background helped Kuda establish strong internal controls, risk management frameworks, and compliance processes critical elements for earning trust in a fully digital banking model.
In the payment’s infrastructure space, Mitchell Elegbe, founder and CEO of Interswitch, represents one of Africa’s earliest examples of bank-informed fintech innovation. Elegbe’s early career in financial auditing and payment operations gave him firsthand insight into inefficiencies within Nigeria’s payments ecosystem. This background enabled him to anticipate both operational and regulatory challenges, positioning Interswitch as a foundational player in Africa’s digital payments evolution.
Collectively, these founders demonstrate that fintech innovation in Africa is not solely about disruption, but also about deep system understanding. By leveraging prior experience in banking and financial services, they have been able to build platforms that are not only innovative but also resilient, compliant, and scalable.
Experience Isn’t a Guaranteed Shield
While a banking background might present an edge, it is however, important to note that it doesn’t automatically ensure success. There are examples of founders with financial and banking experience who struggled or failed due to poor execution, overreliance on traditional models, and inability to adapt to market realities.
Conversely, some fintech founders without any prior banking experience have succeeded spectacularly by combining tech-savvy, market intuition, and strong strategic execution. Paystack co-founders Shola Akinlade and Ezra Olubi are a prime example. They built a multi-million-dollar payments platform without traditional banking backgrounds, but with engineering expertise.
However, as the company scaled, Paystack brought in experienced banking, compliance, and finance professionals to manage regulatory relationships, risk frameworks, and settlement processes.
Conclusion
Ultimately, while domain expertise in banking can provide an advantage, the true determinants of fintech success lie in entrepreneurial vision, execution strategy, and the ability to respond to market needs.
A founder must combine understanding of the financial ecosystem with adaptability, creativity, and operational excellence. Whether coming from a bank or a tech startup, the ability to identify opportunities, manage risk, and deliver value consistently will define whether a fintech venture thrives or falters.