UK-based financial services corporation Ebury has announced its initial foray into Africa’s fintech sector through the acquisition of Prime Financial Markets, a South Africa-based company.
Prime Financial Markets offers extensive expertise in financial market advice and intermediary services.
According to Boston Consulting Group and QED investors, Africa’s fintech market is projected to reach $65 billion by 2030.
In the past decade, Africa’s fintech industry has garnered significant attention from global corporations. Its rapid growth and extensive benefits have facilitated the thriving of multiple fintech startups in its adaptable ecosystem. Today, the region boasts several success stories, including Flutterwave and Yellow Card, which stand as proud achievements in Africa’s fintech industry.
The economic instability and low financial inclusion rate have motivated numerous investors, innovators, and entrepreneurs to explore opportunities within this burgeoning industry.
In recent developments, the UK-based financial services corporation Ebury has announced its initial foray into Africa’s fintech sector through the acquisition of Prime Financial Markets, a South Africa-based company. These recent milestones represent a long-awaited victory for Ebury as it sets its sights on dominating this emerging market.
Ebury fintech steps into Africa’s fastest-growing industry
Since Africa’s initial venture into digital money via M-PESA, the region has undergone one of the fastest transitions within its financial sector. Today, propelled by the power of blockchain technology, artificial intelligence, and e-commerce, traditional banking systems teeter on the brink of extinction as newer, superior, faster, and globally interconnected systems emerge.
Africa’s fintech industry stands out as one of its fastest-growing sectors, achieving a valuation of over a billion dollars in less than two decades.
According to the Boston Consulting Group and QED investors, Africa’s fintech market is expected to reach $65 billion by 2030. The region’s dispersed populations, continually expanding mobile and e-commerce industry, and rapid digital transformations have created an environment conducive to the flourishing of fintech and digital money.
In recent years, governments, local organizations, and international entities have taken proactive measures to ensure that the next generation is well-equipped with the necessary digital skills for innovation. Consequently, many individuals have entered the fintech industry, striving to secure a position in its lucrative ecosystems while it is still in its nascent stages.
This trend has prompted numerous international fintech companies to vie for prominence amid the spotlight before Africa undergoes a complete transformation of its financial system.
Prime Finance Market offers a variety of Financial Services has caught the eye of fintech Ebury.
Ebury has set its sights on Africa’s fintech industry, and to achieve this goal, the UK-based fintech made its first move by acquiring one of Africa’s leading financial services providers, Prime Financial Markets.
According to official reports, Prime Financial Markets is a South African financial services provider specializing in treasury and financial market advisory. The organization has gained a significant reputation through its extensive array of intermediary services. Ebury Fintech took notice of its renown, performance, services, and potential.
While Ebury Fintech has not disclosed the financial details of the deal, it has emphasized that the agreement is pivotal in the company’s global expansion strategy.
The world is undergoing a fundamental shift as the demand for alternative banking services continues to rise. Ebury fintech, specializing in diverse financial solutions, aims to enhance the financial services provided to SMEs in Africa’s fintech industry.
Prime Financial Markets brings extensive expertise in financial market advice and intermediary services. Its range of functionalities includes treasury evaluation, hedge execution, systems offering, liquidity and covenant management, and treasury policy and risk integration advice.
Juan Lobato, Ebury Co-founder, expressed, “We’re delighted Prime Financial Markets is joining the Ebury family. Its complimentary suite of services is a natural fit with our global capabilities, and the transaction enables us to establish a new geographic presence at the heart of Africa’s financial services market. International expansion is key to our strategy, and this acquisition further strengthens both our platform for growth and our ability to provide a market-leading service to clients.”
Gert Delport, Managing Director at Prime Financial Markets, added, “Ebury’s global scale, innovative technology, and bespoke customer service make them a natural partner for our business. It is a hugely ambitious business, and we look forward to achieving those lofty strategic goals together, particularly in Africa, our geography of expertise.”
Ebury fintech’s success story
Ebury began its journey in 2009 when the first signs of a new era started through digital currency. Serial entrepreneur Juan Lobato and financial services expert Salvador García foresaw this coming age and sought to dominate the industry before their competitors caught wind of it.
At its core, Ebury FinTech aims to revitalize the Fintech industry through its online financial solution catering to SMEs worldwide. The UK-based fintech prides itself on providing advanced financial services to SMEs that are accessible only to large corporations, such as transferring money overseas and international subsidiaries and managing an organization’s exposure to currency fluctuations.
Their quick thinking of Juan eventually paid off as Ebury is one of the fastest growing fintech organizations in Europe. Over the years, it has showcased a rapid growth rate, supporting over 28,500 businesses and organizations. By 2015, after only six years in business, the UK-based organization received over $69 million (£54.4 million) in investment funding.
This amount played a significant role in expanding their influence over Europe’s fintech industry. Ebury has a team of over 400 colleagues in over 20 countries. Its rudimentary approach to providing alternative financial solutions quickly earned them over ten awards between 2016 and 2017.
According to their official site, Ebury provides world-class FX risk management strategies and fast, secure international payment in over 130 currencies. Their flexible business lending feature has continued to earn clients’ trust.
About Prime Financial Markets
Prime Financial Markest is a registered financial services provider located in South Africa. The organization has provided financial market advice and intermediary services to businesses, clients, and corporations in the treasury and economic space. The organization boasts over 50 years of combined financial markets experience. According to the organization’s official site, Prime Finacial Mekrte offers four leading solutions.
The first is Treasury Evaluation services aimed at understanding a client’s financial risk management requirements. This, in turn, aids the organizations in developing an appropriate risk management strategy for a client’s current and envisaged capital structure.
The organization also offers Hedge Eecytion services in which they independently establish the best prices in the market. In addition, they also negotiate on behalf of the clients to create appropriate tension between multiple parties to ensure tangible savings for their customers.
Furthermore, to keep up with the transitioning financial systems, Prime Financial Market also offers a variety of digital solutions, reducing manual reporting and maximizing convenience. This feature has also played a significant role in the organization’s transition into Africa’s fintech industry.
Finally, the organization offers Liquidity and Covenant management, Treasury Policy, and Risk Integration advice. This feature aims at alleviating the pressure goring businesses place on existing finance or treasury teams. Prim Finance Markets boasts of its ability to map out sound liquidity and funding covenant forecasting processes.