State Of Technology In EA Banking Industry

You would expect East Africa’s banking sector to be experiencing a technology revolution in the Silicon Valley sense. Instead, it is undergoing something arguably more difficult: a controlled, high-stakes evolution under intense regulatory scrutiny, economic, and operational pressure. The 2025 PwC Eastern Africa Banking Survey captures this. It reveals a sector that understands what must change while still negotiating how fast, how deep, and at what risk.

What emerges is a portrait of banks that are technologically ambitious even as they exercise caution and acknowledge that technology strategy is now inseparable from survival. PwC’s findings state how “Digital transformation is accelerating but remains largely evolutionary. Banks are digitising with discipline, prioritising customer experience, operational efficiency, and cybersecurity over radical reinvention.”

This discipline defines nearly every technology decision discussed in the report.

Tech For Stability, Not Disruption

Unlike a number of their global peers, East African banks are not pursuing technology to dismantle their operating models. Instead, technology is being deployed to stabilise those models in the face of volatility. “Banks in Eastern Africa are taking an evolutionary approach to technology, prioritising tools that enhance existing operations rather than transform business models.”

AI, cloud, APIs, and omnichannel platforms are widely recognised as critical. However, they are being integrated into existing processes rather than used to reinvent them as a reflection of risk reality. Banks are simultaneously balancing an array of issues ranging from fragile macroeconomic conditions, regulatory scrutiny, and cybersecurity threats.

For the bank tech leadership, it means success is less about novelty and more about resilience, compliance, and execution.

A World Where AI Is Carefully Contained

AI features prominently across the survey, but its application is quite pragmatic rather than experimental. “Advanced technologies like AI are gaining attention, but their use remains practical and embedded in current processes. 72 per cent of respondents rank AI and machine learning as top technologies, with applications focused on customer segmentation, credit risk, and fraud detection—improving underwriting and marketing rather than driving wholesale reinvention.”

It is proof AI in East African banking is not about moonshots. Instead, it weighs incremental performance gains such as better risk scoring, stronger fraud detection, and speaks to customer targeting and satisfaction. The implication for CIOs and CISOs is stark. AI systems must be explainable, auditable, and regulator-ready, where governance matters as much as capability.

Cloud computing occupies an unusual position in the report. It is widely acknowledged as critical but also deeply constrained by regulatory and architectural realities. “While 62 per cent of respondents rank cloud-based systems and data strategies among top priorities, only 4 per cent list cloud migration as a strategic imperative.”

This hesitation reflects real concerns such as data sovereignty, regulatory approvals, and legacy infrastructure. In markets such as Tanzania and Uganda, cloud adoption is explicitly shaped by central bank guidance and approval requirements. It is pushing tech leaders into a hybrid reality where they’re running toward cloud efficiency, yet tethered to the country’s regulatory frameworks, slowing down progress.

Cybersecurity And Third-Party Risk To The Fore

Perhaps the most urgent finding in the report is the elevation of cybersecurity from a technical issue to an enterprise-wide risk. “Forensic investigations across East Africa’s financial sector services show sophisticated cybercriminals are increasingly exploiting third-party vendors as their preferred attack vectors.” This has direct implications for technology architecture, vendor selection, and partnership strategy. Banks are not just defending their own systems. They are defending ecosystems. Top of that list is third-party risk management at 26 per cent.

It turns vendor governance, supply-chain security, and continuous monitoring into core responsibilities for CIOs and CISOs. Security is no longer a procurement afterthought.

ESG Grows Into A Tech Problem

Sustainability is no longer a reporting exercise. “As sustainability reporting expectations rise, transparency is becoming a strategic asset…38 per cent of respondents rating ESG transparency as mission critical.” ESG comes with barriers, too. Many operate within an underdeveloped regulatory environment, giving rise to “internal capacity constraints, including limited ESG expertise, fragmented governance structures, and inadequate data systems.”

This places ESG squarely in the domain of tech leaders. Without a reliable data infrastructure, ESG commitments remain aspirational.

The report’s most direct warning is its most important. “For banks in East Africa, transformation is no longer a strategic option. It is an existential imperative.” This, unfortunately, is not hyperbole. The convergence of AI, cyber risk, regulation, customer expectations, and sustainability underscores how tech leaders are now central to the financial institutions’ survival. One determined not by size or legacy, but by the ability to adapt, innovate, and lead with purpose.

For CIOs, CTOs, CISOs, and Heads of Technology, leadership is all about navigating constraints intelligently. Tech leaders are now the strategy.