By Peter J. Burns III

In nearly five decades of being an entrepreneur, I’ve seen industries come and go, technologies rise and fall, and economies shift in ways that are sometimes hard to predict. But one trend that has caught my attention in recent years is the explosive growth of fintech in emerging markets. It’s one of the most exciting opportunities I’ve come across in a long time—both for entrepreneurs looking to build new businesses and for investors seeking high-growth opportunities.

Fintech, short for financial technology, is a broad term that refers to any technology that improves or automates financial services. It’s a sector that has already transformed how people in developed economies handle their finances, from mobile banking and digital wallets to peer-to-peer lending and cryptocurrency. But in emerging markets, where traditional financial systems are often underdeveloped or inefficient, fintech has the potential to be even more transformative. Let’s take a closer look at why fintech is growing so quickly in these markets and what opportunities it presents for entrepreneurs and investors alike.

Why Fintech is Thriving in Emerging Markets

There are a few key reasons why fintech is experiencing such rapid growth in emerging markets. First and foremost is the fact that many people in these regions are underserved by traditional banking systems. In countries like Kenya, Nigeria, Vietnam, and India, a large percentage of the population doesn’t have access to basic financial services, such as checking accounts, loans, or insurance. This lack of access isn’t due to a lack of demand—people in these countries want financial services just as much as anyone else—it’s due to infrastructure challenges, regulatory hurdles, and sometimes even a mistrust of traditional banks.

Fintech companies are stepping in to fill this gap by offering innovative solutions that work around the limitations of traditional banking. One of the most notable examples is mobile money. In Kenya, for instance, M-Pesa has revolutionized how people handle their finances by allowing them to send and receive money through their mobile phones. This simple yet powerful technology has empowered millions of Kenyans who previously had no access to banking services. M-Pesa is now used by over 40 million people across several African countries, demonstrating how fintech can scale rapidly in underserved markets.

Another reason fintech is thriving in emerging markets is the widespread adoption of smartphones. While many people in these regions may not have access to traditional bank branches, they do have mobile phones, often with internet access. This allows fintech companies to deliver their services directly to consumers in ways that were previously unimaginable. Entrepreneurs in fintech are building apps that provide everything from savings accounts to microloans, all accessible through a smartphone.

Lastly, fintech companies in emerging markets are benefiting from a regulatory environment that is often more flexible than in developed economies. Many governments in these regions recognize the potential of fintech to drive financial inclusion and are creating policies that support the growth of the industry. In some cases, this means lighter regulations for fintech startups, while in others, it means partnerships between fintech companies and government agencies to reach underserved populations.

Opportunities for Entrepreneurs

For entrepreneurs, the rise of fintech in emerging markets presents a unique opportunity to build businesses that can grow rapidly while having a meaningful impact. One of the most exciting aspects of working in fintech is that it’s not just about making money—it’s about solving real problems. Many of the most successful fintech companies in emerging markets are those that address critical pain points, such as the inability to access credit, save money securely, or send funds across borders affordably.

Entrepreneurs who can identify these gaps and offer innovative solutions have a significant advantage. In regions where traditional banks have failed to meet the needs of the population, fintech startups have the potential to build customer bases that number in the millions. Mobile banking, peer-to-peer lending, and microfinance platforms are just a few of the areas where entrepreneurs can make a difference.

One of the lessons I’ve learned over the years is that the best business ideas often come from paying attention to what people need but can’t easily access. In emerging markets, there’s no shortage of demand for financial services. The challenge—and the opportunity—lies in creating products that are both accessible and affordable for large segments of the population. Entrepreneurs who can do this successfully will find themselves at the forefront of a fintech revolution that is reshaping entire economies.

Opportunities for Investors

The rise of fintech in emerging markets is also creating significant opportunities for investors. Venture capitalists, private equity firms, and even individual investors are increasingly looking to fintech startups in regions like Africa, Southeast Asia, and Latin America as promising investment opportunities. The potential for growth in these markets is enormous, and the barriers to entry are relatively low compared to more established markets.

What’s particularly appealing for investors is the scalability of fintech businesses. Digital platforms allow fintech companies to grow quickly without the need for significant physical infrastructure, which is one of the reasons why fintech is expanding so rapidly in emerging markets. A single app can serve millions of customers, which creates the potential for high returns on investment.

Moreover, fintech companies in these regions often operate in industries that are essential to economic development, such as payments, lending, and insurance. This means that investors aren’t just putting their money into speculative ventures—they’re investing in businesses that are driving financial inclusion and economic growth. In many cases, this also makes fintech startups in emerging markets attractive targets for larger financial institutions that are looking to expand their reach.

Investors who are willing to take a long-term view and navigate the challenges of working in emerging markets stand to benefit significantly. Fintech in these regions is still in its early stages, but the growth trajectory is clear. Companies that establish themselves now will be well-positioned to dominate the market as it continues to expand.

The Future of Fintech in Emerging Markets

Looking ahead, I believe the potential for fintech in emerging markets is only going to grow. As more people gain access to smartphones and internet connectivity continues to improve, the demand for digital financial services will increase. Entrepreneurs who can stay ahead of the curve by offering innovative products and services will find themselves in a position to shape the future of finance in these regions.

For investors, now is the time to get involved. Fintech in emerging markets represents a rare combination of high growth potential and social impact, making it one of the most exciting sectors to watch in the coming years.

In the end, fintech is more than just a trend—it’s a movement that is changing the way people live and do business, especially in parts of the world that have been left behind by traditional financial systems. For both entrepreneurs and investors, the opportunities are limitless.