During my research into African fintech, I kept noticing a pattern. Startups were launching innovative products designed to solve critical financial challenges, but many were struggling to gain traction. Despite addressing real needs like digital payments and access to credit, adoption rates were disappointingly low.
Curious to understand why, I set out to learn more—not just from data but from the ground. I visited local markets, spoke to founders, and listened to users. What I discovered changed the way I think about product development.
The Reality Gap
One observation stood out: many startups were building solutions based on assumptions, not on real-world customer insights. They were designing features they thought users needed, without fully understanding the day-to-day realities of their target market.
I saw this play out vividly with digital lending apps aimed at small traders. On paper, the apps were perfect—easy to use, quick loans, and seamless digital payments. But when I spoke to potential users, a different story emerged.
For instance, a market woman named Adama downloaded one of these apps but never applied for a loan. When asked why, she explained, “I don’t trust putting my bank details online. And what if I can’t pay on time? Will they seize my goods?”
It wasn’t about the product’s features—it was about trust and flexible repayment options. The startups were missing these critical pain points because they weren’t engaging directly with their users.
The Role of Primary Research
This was just one example, but I saw the same pattern again and again. It became clear that startups needed to bridge the gap between product development and user reality. And the best way to do that? Primary Research.
In observing successful startups and speaking with founders, I noticed three key strategies that worked:
- Customer Discovery Interviews
Startups that thrived conducted one-on-one interviews not just to validate their ideas but to understand their users’ fears, habits, and pain points. In one case, a fintech founder discovered that traders were more comfortable discussing financial issues in informal settings and in local languages. This simple insight led to a change in how they communicated with users. - Focus Groups and Community Engagement
I also saw effective startups organizing focus groups anchored by trusted local influencers. This approach boosted participation and revealed deeper insights. In one session, participants admitted they preferred saving money in traditional community groups (ajo or esusu) over digital wallets, simply because of trust issues. - Pilot Programs and MVP Testing
Startups that adopted a “test-and-learn” approach were the ones that made the biggest breakthroughs. Rather than launching fully developed products, they started with Minimum Viable Products (MVPs). For instance, one digital lending platform used WhatsApp to offer loans before developing a full app. They observed repayment behaviors and adjusted their strategy based on real-world feedback.
Insights That Make a Difference
The startups that applied these approaches gained valuable insights:
- They learned that users didn’t want rigid loan repayment schedules because their incomes were inconsistent.
- They discovered that trust was a bigger barrier than technology. Users were more comfortable with financial interactions through familiar platforms like WhatsApp.
- They realized that community influencers were powerful allies in building credibility.
Why This Matters for African Fintech Founders
In Africa’s fragmented and informal markets, traditional data sources often fall short. Through my research, I’ve seen firsthand how Primary Research—from customer interviews to MVP testing—can transform product development. It uncovers cultural nuances and behavioral patterns that no industry report can capture.
This isn’t just about building better products—it’s about building trust and creating solutions that genuinely resonate with users.
The answers aren’t always in the data. Sometimes, they’re in the stories people are waiting to tell—if only we listen.
Are you ready to listen to your market?
