Yonas Tibebu

As the world grapples with climate change, economic inequality, and calls for greater corporate transparency, Environmental, Social, and Governance (ESG) factors have moved from being buzzwords to strategic imperatives in the financial services sector. Investors, regulators, and customers alike are increasingly demanding that financial institutions do more than just generate profit—they must also demonstrate purpose , accountability , and long-term sustainability . In this post, we’ll explore why ESG matters in financial services, how it's reshaping risk and investment strategies, and what it means for the future of banking and finance. 🌱 1. What is ESG and Why Does It Matter? ESG stands for: Environmental : Impact on climate, carbon emissions, resource usage, and waste management. Social : Impact on communities, employees, diversity and inclusion, customer treatment, and human rights. Governance : Business ethics, board structure, executive pay, internal controls, com...

As the financial services landscape continues to evolve, fintechs and traditional banks are no longer simply parallel entities—they are increasingly interwoven in a complex web of collaboration and competition . This dynamic is particularly pronounced as the digital era accelerates, pushing both sectors to rethink how they operate, engage with customers, and respond to new technological opportunities. In this blog, we’ll explore whether fintechs and traditional banks should view each other as partners or rivals , and the strategic implications of this choice for the future of financial services. 🌐 The Rise of Fintech: A Game-Changer in Financial Services Fintech, short for financial technology , is revolutionizing how financial services are delivered. By leveraging technology and innovation , fintechs offer disruptive products that often focus on enhancing user experience , speed , and cost-efficiency . Key areas where fintechs are leading include: Payments and money transfer ...

As financial institutions undergo rapid digital transformation, Open Banking is emerging as more than a regulatory requirement—it’s a strategic opportunity to unlock innovation and generate new revenue streams . By exposing core banking functionalities via Application Programming Interfaces (APIs) , banks and national switches are evolving into platforms that enable collaboration, foster financial inclusion, and monetize data-driven services. This shift marks a new era: APIs are no longer just technical tools—they are products . 🔓 The Promise of Open Banking Traditionally, banks held a closed architecture, controlling all customer interactions and data within proprietary systems. Open Banking changes this model by requiring (or encouraging) financial institutions to securely share data with third-party providers (TPPs), including fintechs, wallets, insurers, and merchants—with customer consent. At the center of this model lies the Open API , which unlocks: Real-time access to...

In today's rapidly evolving digital economy, real-time payments (RTP) are no longer a futuristic ambition—they are an operational necessity. The ability to send and receive funds instantly is redefining how financial services operate, how businesses manage liquidity, and how consumers experience value. For national payment switches, banks, fintechs, and central regulators, the shift to RTP is both a significant opportunity and a complex challenge.  1. Redefining Customer Expectations Customers—whether retail or corporate—now expect instant gratification in every aspect of service, including financial transactions. RTP systems align with this expectation, enabling: Instant transfers 24/7/365 Seamless digital commerce experiences Real-time balance updates and confirmations Delayed payments are increasingly seen as friction. In a competitive market, this is a critical customer retention risk. 2. Transforming the Financial Ecosystem RTP reshapes how financial institutions...

In the rapidly evolving landscape of financial services, digital transformation is not just a buzzword—it's a strategic imperative. As banks and financial institutions race to modernize systems, digitize operations, and deliver seamless customer experiences, a critical question arises: How can innovation thrive without compromising regulatory compliance? 1. The Push Toward Innovation The banking sector is embracing: Mobile and digital banking platforms Cloud computing and AI-based services Real-time payment systems Open Banking initiatives These innovations promise speed, efficiency, and greater financial inclusion—especially in emerging markets. In Ethiopia, platforms like Telebirr have reshaped how users interact with money, making financial services more accessible. 2. The Regulatory Tightrope Yet with innovation comes increased scrutiny. Regulators are rightfully focused on: Data privacy and protection (e.g., GDPR, local data sovereignty laws) Anti-m...

Introduction Financial inclusion is a cornerstone of economic development, providing individuals and businesses with access to affordable and efficient financial services. In an increasingly digital world, national payment switches play a pivotal role in expanding financial access, reducing transaction costs, and fostering economic growth. As financial ecosystems evolve, national switches must embrace innovation to remain key enablers of inclusive economies. The Role of National Switches in Financial Inclusion National payment switches serve as centralized infrastructures that interconnect financial institutions, enabling seamless transactions across banks, mobile money providers, and fintech platforms. Their ability to provide low-cost, interoperable, and secure financial services makes them crucial in achieving financial inclusion goals. 1. Enhancing Accessibility Through Interoperability One of the primary barriers to financial inclusion is the fragmentation of payment systems. Nati...