African Bank and Backbase unveil groundbreaking study on the forthcoming trajectory of digital banking across Africa
In the rapidly evolving digital landscape, African banks are making significant strides in transforming their retail banking sectors. According to the "Retail banking: Competing for the modern African customer" report by Backbase, this shift is evident as retail banking becomes the primary focus for digital transformation, with 39% of African banks prioritizing it ahead of SME and corporate banking.
Artificial intelligence (AI) is central to reaching the unbanked population, with banks using alternative data and machine learning techniques to reduce credit risk and deliver scalable financial services beyond traditional physical branches. This approach is exemplified by MCB, which, using the Backbase Engagement Banking Platform, has rapidly scaled and launched new digital services, including SME banking and retail wealth apps.
The top digital priorities for African banks are operational efficiency, financial inclusion, and expanding market share. Banks are increasingly adopting omnichannel strategies, integrating online, mobile, and physical services to deliver seamless user experiences. This shift from traditional banking models to AI-powered platforms is emphasized in the report, which is based on an exclusive survey of over 200 senior banking executives across 40 African countries.
However, the report also highlights several challenges in African digital banking, including digital literacy gaps (77%), cybersecurity concerns (55%), and limited internet access (52%). Heidi Custers, Global Strategy & Transformation Director at Backbase, stated that the goal is not to chase trends but to make digital banking work for real people, at scale.
The Africa Digital Banking Experience Series 2025 report features an in-depth case study of Mauritius Commercial Bank (MCB), which has shown high satisfaction scores and accelerated feature rollout for its digital services. Custers also mentioned the shift from one-size-fits-all products to more thoughtful, data-driven services.
The global leader in Engagement Banking, Backbase, in partnership with African Banker magazine, has launched the Africa Digital Banking Experience Series 2025 report. This report underscores the continent's shift towards AI-driven, customer-focused financial services that enhance inclusion. The report illustrates how African banks are rapidly evolving through technology, particularly AI, to enhance financial inclusion and competitiveness in a digitally driven market.
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- Ffnews.com reported that the Africa Digital Banking Experience Series 2025, a joint initiative by Backbase and African Banker magazine, underscores the continent's emphasis on AI-driven financial services for enhanced financial inclusion and competitiveness.
- In the report, Heidi Custers, Global Strategy & Transformation Director at Backbase, emphasized the shift from one-size-fits-all products to more thoughtful, data-driven services in the African retail banking sector, which also encompasses technology, business, and finance.
