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Business News of Wednesday, 24 May 2023


50% of African banks to deepen tech adoption, says report

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About 50 per cent of banks in Africa have revealed that adopting tech shift tops their business concerns as they look to shape the future of the banking industry and drive financial inclusion on the continent.

This was disclosed in the third edition of the African Banking Digital Transformation Report, released by the African Banker magazine and Backbase on Tuesday.

This year’s report surveyed 153 banks across the continent, and found that regardless of the adverse macroeconomic environment, African banks remained resilient and committed to investing in digitisation to remain relevant in the competitive landscape.

Part of the report said, “Most African banks understand the importance of the key technological shifts with over 50 per cent of surveyed banks considering it the most important factor for their business.

“Moreover, 19 per cent of banks considered identify themselves as ‘digital native’, further stressing the importance of digital transformation going forward.”

The report added that digital technology and platforms were making the African banking sector increasingly dynamic and responsive to customer requirements.

It stated, “Even just a few years ago, the African banking sector was evolving relatively slowly, with the same banks dominating the same markets year after year, as evidenced by the African Business Top Banks survey among others.

“However, mobile money and agency banking is totally revolutionising the industry. Not only has it created a vast array of new players in the sector but the technology on offer has forced traditional banks to change the ways that they do business and engage with their customers.