Banking in Africa is undergoing a transformation as hyper-personalisation, AI integration and financial inclusion drive major changes.
A new report from Backbase and African Banker magazine, “Retail banking: Competing for the modern African customer” is based on an exclusive survey of over 200 senior banking executives across 40 African countries.
Key findings from the report include:
- Retail banking remains the main entry point for digital transformation, with 39% of banks prioritising it, followed by SMEs and corporate banking.
- AI is becoming central to reaching the unbanked, with banks using alternative data and machine learning to derisk credit and deliver scalable services beyond physical branches.
- Operational efficiency, financial inclusion, and market share expansion are the top three digital priorities for African banks.
- Banks are increasingly adopting omnichannel strategies, integrating online, mobile, and physical services to deliver seamless user experiences.
- The biggest challenges remain digital literacy gaps (77%), cybersecurity concerns (55%), and limited internet access (52%), though all are expected to decrease with rising digital adoption and investment.
Heidi Custers, global strategy and transformation director at Backbase, comments: “This report shows just how far African banks have come in rethinking the customer experience. What stands out is the shift from one-size-fits-all products to more thoughtful, data-driven services. It’s not about chasing trends – it’s about making digital banking work for real people, at scale.”