Insights into Africa's digital banking revolution

The African Banking Digital Transformation Report, by African Banker and Backbase, provides key insights into the digital revolution in Africa's banking sector, highlighting trends, innovations, and financial inclusion efforts

The African Banking Digital Transformation Report, a collaboration between the pan-African publication African Banker and Backbase, the creators of The Engagement Banking Platform, stands as a pivotal resource in Africa's financial news sphere, providing comprehensive insights into the ongoing digital revolution within the continent's banking sector

Africa’s burgeoning population, projected to reach 2.49 billion by 2050, along with a remarkable surge in the usage of smartphones and tablets (with mobile phones accounting for 75% of web traffic), sets the stage for a significant expansion in digital banking. The advantages, including speed, convenience, and enhanced user data, enable banks to offer more personalised solutions for their clients. In 2021, the most recent year with complete data, 55.07% of the African population had a bank or mobile money account, a substantial increase from 23.33% in 2011.

Digital: The way forward

The 2024 edition of The African Banking Digital Transformation Report highlights that 76% of banks consider digital transformation as either their top priority or among their top three priorities, while the remaining 24% also regard it as crucial. With nearly half of the continent lacking access to any form of bank account, including around 60% of women, this result signifies the potential for banks to expand their customer base through inclusive digital offerings.

This year, cloud computing emerged as the most frequently mentioned technology being integrated into digitisation strategies, surpassing Artificial Intelligence and Cybersecurity & Resilience as the primary driver since our 2023 survey. This shift can be attributed to the increasing sophistication of AI solutions, which now extend into other technological areas, including Cybersecurity.

In an interview for the report, Ecobank group chief digital officer Nvalaye Kourouma stated, “I really see AI as a game-changer, both internally and externally” because AI-powered tools help overcome language barriers for engaging customers in different countries. “We now have the capability to build local natural languages into our AI interactions so that language and writing are no longer barriers. Speech and image can be used to communicate more effectively. AI opens the door for a different level of engagement with our customers, so it’s encouraging,” he added.

The 2024 edition of the Report draws on comprehensive survey data from over 150 banks across 35 countries, offering an in-depth analysis of current digital banking trends, key innovations, and progress in digital transformation. This publication underscores Backbase's dedication to advancing technology and promoting financial inclusion in Africa.