FinTech Partnerships: Choose Carefully, Then Evolve

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Recognizing this, many FinTech startups in Africa are using a "high-touch," in-person approach to customer relations with their low-income customers. But doesn't this increase operational costs and hinder the scalability of these FinTech startups? Are they more likely to fail than counterparts in other markets? Last year, CGAP began working with several FinTechs to pilot and scale digital finance innovations for low-income customers in Africa. Through that work, we are seeing FinTechs find ways around their customer relations challenges by teaming up with a variety of organizations, from farmers' associations to savings groups.

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