Mobile banking in Africa has moved from the sidelines to the centre stage, officially becoming the primary way millions of people interact with their financial institutions.
While previous years focused on the race for digital adoption, a new landmark study reveals that the industry has entered a high-stakes era defined by intelligence, inclusion, and a unique competitive tension between banks, telcos, and fintechs.
These insights are central to the fourth edition of the Africa Digital Banking Experience Series, titled “Mobile Banking: Intelligence, inclusion, and new competitive realities,” published by Backbase in partnership with African Banker magazine.
The report is based on a survey of 203 senior banking executives across 40 African countries, the report serves as a road-map for an industry where mobile devices now command at least 75% of all online traffic.
From access to intelligence
The report identifies a fundamental “paradigm shift” in how African institutions view their digital presence. Where earlier editions of the series tracked the struggle to get customers online, the 2025 data shows that 54,8% of banks now see more than 40% of their base as digitally active.
However, the next phase of African banking is no longer just about access; it is about intelligence. Banks are rapidly evolving their apps into full-service hubs that integrate multi-currency support, automated loan applications, and micro-insurance, moving away from simple transaction utilities toward proactive financial ecosystems.
Navigating the African triple threat
Despite this progress, the report highlights the persistent last mile hurdles that differentiate the African market from the global West. Banking executives identified three critical barriers to the next wave of growth:
- The Connectivity Gap: 65,6% of executives cite unstable network coverage and high data costs as the primary deterrent to adoption.
- The Security Trust Gap: 50% of banks identify malware and SIM-swap fraud as the leading reason customers hesitate to fully commit to mobile platforms.
- The Infrastructure/Skills Deficit: Beyond internet access, the lack of reliable electricity and digital literacy remains a significant bottleneck for rural expansion.
Looking ahead
Heidi Custers, global strategy and transformation director at Backbase, comments that the industry is at a critical crossroads:
“The era of the ‘digital-only’ bank is over. We have entered the era of the ‘intelligent-everywhere’ bank.”
She adds: “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.
“Banks must now pivot from being reactive utility providers to becoming indispensable partners in their customers’ daily lives,” says Custers. “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’re becoming irrelevant.”