Senegalese fintech Kopar Express is making bold moves to capture a significant share of Senegal’s $2.8 billion annual remittance market through the launch of a new neobank aimed at the country’s diaspora. Supported by the Senegalese government via a partnership with La Banque nationale pour le développement économique (BNDE), the initiative aims to establish a streamlined financial gateway for Senegalese citizens abroad, enabling them to open accounts, access financial services, and invest back into the Senegalese economy.

This digital-only banking platform, set to launch in December 2024, is positioned to offer a convenient alternative for the Senegalese diaspora, a group known for its substantial financial contributions to the nation. With Kopar Express’s technology infrastructure and BNDE’s established banking expertise, the partnership seeks to offer a full suite of banking services that could boost investment back into Senegal and make it simpler for those living abroad to manage financial affairs from a distance.

At the heart of this initiative is a dual aim: enhancing financial inclusion for Senegalese abroad and strengthening national economic growth through increased remittance flows. According to BNDE’s CEO, Mamadou Faye, the neobank is intended to connect Senegalese expatriates with the local economy, enabling them to engage in investments and savings with ease. “This platform is designed to empower Senegalese abroad with accessible banking options while driving economic engagement within Senegal,” Faye stated.

With remittances playing a vital role in the Senegalese economy, contributing approximately 9.8% to the nation’s GDP in 2022, the neobank presents an opportunity for the government to capture a larger share of transaction fees currently paid to foreign intermediaries. Senegalese remittances rose 4.8% last year, amounting to approximately FCFA 1,700 billion ($2.7 billion), according to the Ministry of Finance and Budget. By offering a competitive alternative to existing remittance channels, Kopar Express and BNDE aim to reduce costs for users while keeping more capital within Senegal’s financial ecosystem.

Senegal’s government has backed the neobank with an eye toward economic self-reliance and deeper engagement with its expatriate community. For Secretary of State for Senegalese Abroad, Amadou Cherif Diouf, the platform is a means to channel diaspora resources directly into the Senegalese economy. “This initiative will enable us to retain capital that Senegalese migrants currently invest or save in host countries, creating a direct pipeline for economic growth within Senegal,” Diouf stated.

The government’s support for the neobank reflects its larger ambition to control more of the remittance flows, estimated to cost the diaspora between 8% and 10% in fees annually — a sum that could equate to over FCFA 100 billion in potential revenue for Senegalese financial institutions. This move also aligns with the government’s goal of expanding Senegal’s national financial infrastructure and creating pathways for diaspora members to contribute more directly to national development.

The Path to Market Control

Kopar Express, with its existing user base of 600,000, aims to build on its established reach by offering a compelling digital banking alternative. By leveraging its technological infrastructure to provide easy account access and financial services across borders, the company seeks to centralize remittance activities currently dispersed across multiple foreign-owned remittance providers. With a highly digital approach, the neobank is expected to benefit from both the rapid adoption of mobile technology in Senegal and the diaspora’s growing interest in streamlined investment channels.

However, analysts point to the challenges ahead. Dominating the remittance sector requires not only competitive fee structures but also robust security measures and seamless cross-border functionalities. With established global remittance giants already occupying the market, Kopar Express will need to present compelling value propositions to attract a broad base of users. Yet, for the government, supporting Kopar Express aligns with a broader strategy to diversify its financial sector and increase its control over critical capital inflows.

For Senegal, the neobank represents a major milestone in a larger push to modernize its financial sector through digital transformation and fintech innovation. Should the initiative succeed, it could establish Senegal as a model for other African nations seeking to harness the economic power of their diasporas through digital banking. By fostering homegrown fintech solutions like Kopar Express, Senegal is positioning itself at the forefront of African nations focused on self-sufficient financial ecosystems.

As the December launch date approaches, all eyes are on Kopar Express and BNDE to see how they will leverage their partnership to capture market share from foreign remittance providers. Success could redefine the role of diaspora contributions in Senegal, bringing them into a digital banking framework that is both nationally rooted and internationally accessible.