Learning outcomes After completion of the case study, the students will be able to examine the specific challenges and opportunities for fintech companies in markets with low infrastructure and regulatory support, understand the role of regulatory frameworks in fintech operations and how companies can navigate unregulated or under-regulated environments, discuss how continuous innovation sustains competitive advantage in rapidly evolving markets and identify the role of FinTech in promoting financial inclusion and its impact on economic stability and growth in emerging markets. Case overview/synopsis In July 2024, Deeq Mohamed Africa, co-founder and chief executive officer, and Abdishakur Shidane, chief operating officer, of Bixi were managing the company’s operations for eDir, Somalia’s pioneering service for inter-wallet money transfers. eDir facilitates transactions between local mobile money services, such as electronic voucher card, e-Dahab and E-besa, and international platforms like Perfect Money and Binance. It supports the Somali market by enabling low-cost transfers between digital wallets and global payment systems. Despite its innovative approach, eDir faced challenges such as varying levels of digital literacy, resistance to service fees and a transition from traditional financial practices. The historically inefficient hawala system and lack of adequate regulation in Somalia further complicate operations. Bixi has linked with banks and mobile wallet providers to serve over 87, 000 users and process transactions worth above 300m. This case study explores the challenges of creating interconnectivity in a digitally diverse society and the need for regulatory and technological innovations to ensure growth and relevance. Complexity academic level This case study is suitable for undergraduate students. Supplementary materials Teaching notes are available for educators only. Subject code CSS 1: Accounting and finance
Yusuf et al. (Wed,) studied this question.