Digital Transformation Top 3 Priority For Banks

The African Banking Digital Transformation Report, a collaboration between pan-African publication African Banker and Backbase, creators of The Engagement Banking Platform, offered in-depth insight into the digital revolution being undertaken by the banking sector across the continent.

A growing African population – forecast to be 2.49 billion by 2050 – coupled with spectacular increases in the number of devices such as smartphones and tablets (mobile phones now account for 75 per cent of web traffic in Africa) is the perfect recipe for an explosion in digital banking. Benefits include speed, convenience, and enhanced user data, meaning that banks can much more readily tailor solutions for their clients. In 2021 – the last year for which full figures are available – 55 per cent of the African population owned a bank or mobile money account, compared to 23.33 per cent in 2011.

Digital: The Way Forward

The 2024 edition of The African Banking Digital Transformation Report revealed that 76 per cent of banks rank digital transformation as either their top priority or among the top three, while the remaining 24 per cent also view it as important. With almost half of the continent unable to access any form of bank account, including approximately 60 per cent of women, this result reflects the opportunity for banks to grow their customer base through an inclusive digital offering.

This year, cloud computing was the most cited technology being incorporated into digitisation strategies. This overtakes Artificial Intelligence (AI), cybersecurity and resilience as the primary driver since our 2023 survey. The result can be explained through the growing sophistication of AI solutions, which sees it spill over into other technology areas including cybersecurity.

Interviewed for the report, Ecobank Group Chief Digital Officer Nvalaye Kourouma said, “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 can build local natural languages into our AI interactions so that language and writing are no longer barriers. Speech and images 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 more than 150 banks spanning 35 countries, providing an in-depth analysis of current digital banking trends, key innovations, and digital transformation progress. This release underscores Backbase’s commitment to fostering technological advancements and driving financial inclusion in Africa.

The African Digital Banking Transformation Report was launched during GITEX Africa 2024, which took place 29 – 31 May in Marrakesh, Morocco. The report is available to download here.