African banks remain resilient and committed to digitization to remain relevant in today’s competitive landscape. As competition heats up between the different players, AI is identified as key technological trend shaping the future of the banking ecosystem in Africa.
African Banker have produced the 3rd edition of their comprehensive report about the ongoing African digital banking revolution, exploring the major trends shaping the future of the banking industry and financial inclusion on the continent.
The core of this year’s report is the most comprehensive banking survey on the continent that attracted the participation of a record 153 banks from across the continent.
Against an adverse macro-economic environment, African banks remain resilient and committed to invest in digitization to remain relevant in today’s competitive landscape.
Most African banks understand the importance of the key technological shifts with over 50% of surveyed banks considering it the most important factor for their business.
Moreover, 19% of banks considered identify themselves as “digital native”, further stressing the importance of digital transformation going forward.
A second element of the report focused on the key technological trends shaping the future of the banking ecosystem in Africa.
Last year 74% of banks surveyed named cyber security as one of the most important trends to shape the future of the industry. However, this year, Artificial Intelligence came out on top.
Most importantly, on a continent where banking penetration rates are still below 50%, African banks reaffirmed the importance of driving greater financial inclusion across the whole continent.
Roughly 50% of banks surveys named retail banking as their top priority for 2023/2024, whilst also referring to mobile wallet apps and digital payment systems as the most critical product development priority for the next two years.
It is widely accepted that digitalization can solve many of the structural problems that exist in access to finance in Africa and banks still have a huge role to play to spread financial inclusion, including in the B-to-B and B-to-C segments.
Which is why it is essential to create an optimal environment to carry out this crucial mission, another pressing issues identified by banks.
The full report offers a clear perspective on market trends, challenges, detailed analysis of the survey results and recommendations.
- 50% of banks surveyed named retail banking as their top priority for 2023 and 2024
- 19% of banks surveyed identify themselves as “digital native”
- 40% of banks surveyed regard fintechs and telcos as high threats
- 28% of banks surveyed spend more than USD3m a year on digital transformation
- 69% of banks think AI will be the most important technology shaping the industry in the near future
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