By: Oluwaseun Adeoye
Cloud data management is transforming Africa’s fintech ecosystem, driving growth, compliance, and new financial products despite challenges.
People see brands like Moniepoint, Flutterwave, and Chipper Cash at the height of their success today, but what I see when I look at these successful companies is the grind it had to take for them to be where they are today. They had to wade through the transaction records, risk models designed based on their experiences, and customer profiles, the tacky world of cloud data management. Then again, these transaction records and other stored and analyzed data in the cloud quietly reshape how we understand financial inclusion across Africa.
The scenario was quite different ten years ago and now seems archaic and dated. Brands relied on local servers to store fragmented databases, which proved unreliable during emergencies. Expanding beyond an invisible border posed a logistical challenge. Interswitch, founded in 2002 in Nigeria, had to build proprietary infrastructure to provide essential card payments, and it was on this foundation, several fintechs built their operations. Currently, startups have benefited from the clouds available today, namely, Microsoft Azure, Amazon Web Services (AWS), Google Cloud Platform (GCP), and Alibaba Cloud, in the capability of proceeding with storing and computing more enormous datasets. The trend, among other factors, has contributed to the growth of various companies in the region. Some have seen significant adoption of cloud technology, which aligns with the general expansion of the fintech sector in Africa, projected to experience notable growth in the coming years.
Cloud migration isn’t just about cost savings for these companies, though that’s a benefit. Moving to the cloud can cut operational expenses by 40%, defining any startup, not just Africa. The primary benefit to these companies is that they solve the African fragmentation problem. The mobile money accounts would have generated an immense volume of customer data for M-Pesa, and it did not matter whether it was a $2 transfer in Cairo or a loan disbursement in Lagos; it would generate data that had to be stored. Without cloud systems that aggregate and analyze these transactions in real-time, detecting fraud or even giving a precise credit score would be impossible.
Regulatory compliance, often a difficulty for fintech, has been altered with cloud technology. Companies like Mono and Okra could comply precisely because their systems were cloud-native when Nigeria’s Central Bank implemented its open banking framework in 2023, requiring fintech to communicate customer data safely. Encryption systems, audit trails, and API connections are included in the architecture rather than added later. Even established banks are catching on. Ecobank, which operates in 33 African countries, will shift its key financial systems to the cloud in 2022, reducing transaction processing time from hours to seconds.
Cloud technologies have grown new financial products specifically tailored to African economies. In countries like Kenya, where most employed people are in the informal sector, there is a startup, Tala, that uses data from social media activities, movements, and payment patterns to give a precise credit score and determine who is creditworthy. The model employed by Tala appears to be effective in Kenya, with a relatively low default rate.
There are several challenges to cloud adoption in Africa, and the major one is the infrastructure. Internet coverage in sub-Saharan Africa remains limited, with a significant portion of the population still offline despite growing mobile connectivity. Infrastructure challenges, including power instability, data security concerns, and the scalability of existing systems, continue to hinder the region’s digital growth.
Cloud technology is a perspective rather than only a tool. African fintech companies should now see data that tells a story as a dynamic, always-changing resource rather than a fixed asset. Branch International copied its cloud infrastructure and customized its algorithms to fit local spending trends when it moved from Nigeria to Kenya without transporting servers. This flexibility explains why the financial expansion in Africa looks different from past digital revolutions. It is about entirely replacing outdated systems, not about catching up.
Efficient cloud technology still depends on reliable electricity, ubiquitous internet access, and digital expertise. The reach of the cloud will further widen when 5G networks are set up in cities like Accra and Cape Town and satellite internet projects like Starlink enter rural areas. The change goes beyond a mere technology upgrade for the financial industry in Africa. It creates the foundation for an economic system that is as vibrant, flexible, and strong as the people it benefits. If these challenges to cloud adoption can be tackled, the opportunities for African brands can be limitless.
About The Author
Oluwaseun Adeoye is an experienced Product Manager with over 12 years in the finance industry, specializing in electronic payment solutions and digital banking. He holds a Bachelor’s degree in Computer Science from Bowen University and is currently pursuing a Graduate Certificate in Cloud Data Management at Conestoga College.
Oluwaseun is known for his strong multi-tasking skills and ability to prioritize effectively. He has successfully provided customized payment solutions to corporates in Nigerian and global markets using API integration to drive revenue growth. His expertise includes business development, customer service, project management, and digital marketing.
Outside of work, Oluwaseun enjoys learning new things, listening to music, and simplifying complex tasks through technology.
For more information, check out their LinkedIn profile.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any company or organization mentioned. The information provided is for general informational purposes only and is not intended as professional advice. The accuracy, completeness, and reliability of any data or claims presented are not guaranteed.
