Why the data marketplace model could help businesses in Africa

A decentralised data sharing platform can transform businesses, especially those in credit and payments.

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Shuttrestock

Data is becoming crucial in many businesses today, even as access to finance becomes pervasive. Extracting and handling data to understand consumer behaviour is becoming a norm in business practices even in Africa.

Data privacy laws have established a way to engage with customer data to align with global standards such as GDPR. Africa is not being left behind. However, legacy institutions still have a lot of work to do to incorporate technologies that can explore and monetise information within their purview.

One of the exciting solutions coming up in the African continent is the idea of a data marketplace. Simply put, it is a platform where organisations and institutions can exchange data within their possession safely and ethically. Not only does it solve the issue of data silos, but it also gives companies a simple way to exchange data.

Carma Chain is using this model to help organisations monetise and importantly, use the data already in the market to build better business models. Being a new concept, it has been a challenge for the company.

“Step one would be acquiring enough data contributors to make the service interesting for lenders. It is like a chicken and egg issue on the marketplace,” Ted Martynov the founder and CEO of Carma Chain said.

“We have signed over 22 companies across Nigeria including payment aggregators, mobile wallets, utility providers who use the service,” he said.

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