Digital transformation has emerged as a critical focus for banks in Africa, with a recent report highlighting its significance in the continent’s financial landscape.
The African Banking Digital Transformation Report, a joint effort between African Banker and Backbase, sheds light on the digital revolution underway in the banking sector across Africa. The report underscores the potential for growth presented by the continent’s burgeoning population – projected to reach 2.49 billion by 2050 – and the increasing prevalence of smartphones and tablets.
Key findings from the report reveal that 55.07% of the African population owned a bank or mobile money account in 2021, a significant increase from 23.33% in 2011. This growth underscores the appeal of digital banking, offering benefits such as speed, convenience, and personalized user data.
In the latest edition of the report, 76% of banks in Africa rank digital transformation as a top-three priority, with cloud computing emerging as the leading technology integrated into digitization strategies. Artificial Intelligence (AI) also plays a pivotal role in driving engagement with customers, as highlighted by Ecobank Group Chief Digital Officer Nvalaye Kourouma.
Kourouma noted the transformative impact of AI in overcoming language barriers and enhancing customer interactions. He emphasized the potential of AI-powered tools in delivering a more personalized and effective engagement experience for customers across different countries.
The 2024 African Banking Digital Transformation Report draws on insights from over 150 banks spanning 35 countries, offering a comprehensive analysis of digital banking trends, innovations, and progress in transformation initiatives. The report’s release during GITEX Africa 2024 underscores Backbase’s commitment to advancing technological solutions and promoting financial inclusion in Africa.
As banks continue to prioritize digital transformation, the report highlights the evolving landscape of banking in Africa, driven by technological innovation and a growing need for inclusive financial services. With a focus on leveraging AI, cloud computing, and other cutting-edge technologies, African banks are poised to enhance customer experiences and expand their reach in an increasingly digital world.
