Backbase, a leader in AI-powered banking, in partnership with African Banker Magazine, has published the fourth edition of the Africa Digital Banking Experience Series, titled “Mobile Banking: Intelligence, Inclusion, and New Competitive Realities.”
Mobile banking is no longer an emerging trend; it has become the primary interface for financial services across Africa, reshaping how millions of people engage with their banks.
While previous years were defined by digital adoption, the landscape has transformed. According to recent research, the industry has now entered a high-stakes era characterized by intelligence, inclusion, and unique competitive tension between banks, telcos, and fintechs.
Drawing on insights from 203 senior banking executives across 40 African countries, the report offers a roadmap for an era where mobile devices drive at least 75% of online traffic.
The initial phase of digital adoption is largely complete, and the focus has shifted to engaging customers online. New findings show that a majority of banks (approximately 54.8%) report that more than 40% of their customers are digitally active.
Access was the first wave; now, intelligence follows. African institutions are currently pivoting from reactive utilities to proactive financial engines. By evolving into “financial hubs,” they now weave automated loans, micro-insurance, and multi-currency support into a single, proactive ecosystem that anticipates a user’s needs before they even tap the screen.
The report highlights “last mile” infrastructure and accessibility as the primary differentiators between African digital banking and its Western counterparts. Banking executives cited three key barriers to the next phase of growth:
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The Connectivity Gap: 65.6% of executives identified unstable network coverage and high data costs as primary obstacles to adoption.
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The Security Trust Gap: 50% of banks pointed to malware and SIM-swap fraud as leading reasons for customer reluctance toward mobile platforms.
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The Infrastructure/Skills Deficit: Despite internet access, unreliable electricity and low digital literacy remain fundamental barriers to rural expansion.
Heidi Custers, Global Strategy & Transformation Director at Backbase, notes that the industry is at a critical crossroads. The sector has transitioned beyond its “digital-only” phase and is now embracing an intelligent approach to financial services.
“The next decade of African finance won’t be won by those with the most branches, but by those who can turn raw mobile data into proactive financial empowerment,” said Custers.
“Banks must now pivot from being reactive utility providers to becoming indispensable partners in their customers’ daily lives,” she added. “If you aren’t using the mobile handset to anticipate a customer’s needs before they even open the app, you aren’t just falling behind—you are becoming irrelevant.”
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