EditorAfrican Banker magazine and Backbase have partnered for the third consecutive year to present a comprehensive benchmark of Africa’s digital banking revolution. The core of this year’s report contains insights from over 153 banks across 33 countries in Africa.
Against an adverse macro-economic environment, the report shows that African banks remain resilient and committed to invest in digitization to remain relevant in today’s competitive landscape.
5 Key Findings from the report
- 50% of banks surveyed named retail banking as their top priority for 2023 and 2024
- 19% of banks surveyed identify themselves as “digital native”
- 40% of banks surveyed regard FinTechs and Telcos as high threats
- 28% of banks surveyed spend more than USD3m a year on digital transformation
- 69% of banks think AI will be the most important technology shaping the industry in the near future.
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The new report notes tat digital technology and platforms are making the African banking sector increasingly dynamic and responsive to customer requirements. “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, the rise of fintechs, digital first banks and 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, the report notes in its executive summary.
“Even just a few years ago, while many established banks were integrating digital technology into their operations, some others saw no reason to fundamentally change their approach and were content to continue to rely on their physical bank networks to maintain their market standing. That attitude is dying out if it is not dead already. Most banks on the continent now offer mobile and internet banking services to their customers, at the very least to enable balances to be checked, transfers made and bills paid.”
About African Banker
Launched in May 2007, African Banker is a quarterly magazine dedicated to banking and finance in Africa. It covers news from the banking, finance, insurance, currency, direct and indirect financial investment sectors, as well as the stock markets and capital markets.
About Backbase
Backbase is on a mission to re-architect banking around the customer. Our white-label Engagement Banking platform empowers banks and credit unions to rapidly digitize their customer-facing operations and create seamless journeys that meet – and exceed – the expectations of today’s digitally savvy customers.
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