The internationalization of African fintech firms: marketing strategies for successful intra-Africa expansion

Abstract

Purpose

The purpose of this study is to explore how African fintech firms adapt their marketing strategies for successful market expansion into new African countries.

Design/methodology/approach

This exploratory study is qualitative in nature and utilizes semi-structured interviews at 14 African fintech firms.

Findings

The study reveals that, during intra-Africa expansion, firms adapt their marketing strategies by working with local people, prioritizing customer education, creating personal relationships with customers, adapting their communication strategies and pricing strategies and using social media. The strategies that have been most effective involve including the community in the marketing process, prioritizing relationships, segmenting customers geographically, educating customers about products, using local distribution partners and having a flexible approach to strategy adaptation.

Practical implications

It has been argued that technological innovation in Africa in areas such as financial services is a critical driver of its future development, because of the opportunity it presents to promote financial inclusion. Through an increase in venture capital investment on the continent, technological innovations in financial services have grown exponentially, and this study contributes to the understanding of the marketing strategies employed to gain market traction.

Originality/value

This study proposes that African fintech firms adopt a bottom-up, value proposition-driven marketing strategy to successfully navigate the environment. The proposed framework provides a lens through which to understand the components of successful strategy adaptation in Africa, against the backdrop of the unique market challenges inherent in this emerging market continent.

Citation

Hammerschlag, Z., Bick, G. and Luiz, J.M. (2020), "The internationalization of African fintech firms: marketing strategies for successful intra-Africa expansion", International Marketing Review, Vol. 37 No. 2, pp. 299-317. https://doi.org/10.1108/IMR-05-2019-0130