Digital Banker Africa Winter 2024

IN PARTNERSHIP WITH

MASTERCARD

CONNECTED FOR A BETTER FUTURE:

DIGITAL FINANCE IN AFRICA

DIGITAL BANKER AFRICA I FOREWORD

Welcome to the Winter edition of

DBA 2024!

As we navigate the ever-evolving landscape of financial technology, this edition delves into the theme of “Innovating the Future: Transformative Technologies for Inclusive Banking.” While we continue to cover the familiar territory of contactless payments we also explore a broader spectrum of explore a broader spectrum of groundbreaking technologies that are reshaping the banking and finance sector.

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While fintech and innovation remain at the heart of our discussions, we are committed to shining a spotlight on how these advancements contribute to financial inclusion. This edition will delve into the impact of artificial intelligence, blockchain, digital currencies, and cybersecurity in creating a more inclusive financial landscape.

By focusing on the role these innovations play in reaching

underserved communities, we aim to provide valuable insights and strategies that promote financial inclusion and address the evolving needs of diverse populations.

We are thrilled to feature a collection of insightful articles from industry experts and thought leaders who share their unique perspectives on the future of banking. Their contributions provide authentic and in-depth analysis, empowering you to navigate the complexities of the digital age with confidence.

CONTRIBUTORS LIST I DIGITAL BANKER AFRICA

THANK YOU TO OUR CONTRIBUTING WRITERS IN DBA WINTER 24 ADELEKE OYERO

OLUSEGUN ALEBIOSU

DANIEL AWE

OLANIRAN RASAQ

DARREN FRANKS

PHILANI DLAMINI

Paydock Product Owner

Head Africa FinTech Foundry (AFF) CEO titc.io

DERRYDEAN DADZIE

CEO FirstBank Group

Intergration Analyst Infopro Digital

Engineering Manager Digital Payments

RUFAIDA HAMILTON

Founder Heritors Labs Ltd.

Standard Bank’s Head of Payments in South Africa

HAMISH HOUSTON

SHADRACK KUBYANE

Group Chief Operating Officer enza

KITSO LEMO

Co-Founder eFama App & Coronet Blockchain

SIZWE GWALA

Associate Director Boston Consulting Group, Johannesburg

Head of Data Governance and Management Absa Group

NIHMAL MARRIE

UZOMA DOZIE

NOLWAZI HLOPHE

Director, Africa Expansion EBANX

Managing Director and Partner Boston Consulting Group, Johannesburg Senior Fintech Specialist: FSCA Co-Lead of the Regulatory Guidance Unit

CEO, Sparkle

WIZA JALAKASI

Editor: Anthony Bempong Executive Editor: Noel Morrison Deputy Editor: Henry Scott Art Director: Pritesh Patel Layout Designer Abdhesh Kumar Jha Chief Sub: Kwabena Mensah Bonsu Head of Online Development: Lee-Anne Doughlin Online Development: Gerald Hutchfull, Paulette Davidson Subscription Manager: Stephen Rock Marketing Manager: Siobhan Copland Marketing Assistant Jason Hall, Nikki Jadine Circulation manager: Nathan Asare Head of Sales: Michael Scott Production Editor: Rebecca Turner Business Development: James Walters, Lloyd Quansah, Paul Da Associate Producer: Dean Kirby Head of Accounts: Wayne Sykes Publisher: Percival Marshall ISSN 2752-4485 www.digitalbankerafrica.com Images by www.istock.com All information contained in this publication has been obtained from sources the proprietors believe to be correct, however no legal liability can be accepted for any errors.

No part of this publication can be reproduced without prior consent from the publisher.

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DIGITAL BANKER AFRICA I CONTENTS

CONTENTS 12 16 20

22 26 10

Leading the Way: Olusegun Alebiosu, CEO of FirstBank, on Innovation, Inclusion, and the Future of Finance

The Crucial Role of Government in the African fintech ecosystem

Lessons from a Small Business in Malawi for the African Payments Industry Leveraging Digital transformation in Africa through Emerging Technology You Are the Training Data

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30

Access Bank’s Commitment to Digital Banking Services

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Innovating the Future Transformative Technologies for Inclusive Banking

38

From Cards to Codes Why Payment Tokens Are the New Currency of Trust

40

Unlocking Data with Open Banking Transforming with Artificial Intelligence

Instant Payments Can Play a Bigger Role In Enhancing Financial Inclusion in Africa But We Must Take Deliberate Actions

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Digital Banker Africa Awards 2024

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Connected for a Better Future: Digital Finance in Africa

50

Transforming Nigeria The FirstBank Way

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Breaking Barriers Can New Tech Drive Inclusion in Africa’s Fintech Economy?

58

Bridging the Financial Divide How AI and Blockchain Are Driving Inclusive Banking in Africa

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Digital Innovation The catalyst to inclusive banking

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The Role of Blockchain Technology in Building Financial Inclusion

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No Time to Waste Africa’s Banks Must Leverage Their Advantage Now

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LESSONS FROM A SMALL BUSINESS IN MALAWI FOR

THE AFRICA N

PAYMENTS

I N D US TR Y Once, my cousin, who owns a fashion business, called me with an unusual request: “Wiza, could you please help me make a payment in dollars to a Chinese supplier?”

If my cousin lived in the United States, Europe, or Asia, she probably wouldn’t have even needed to call me. She could have resolved it easily in just a few minutes. But she’s in Malawi, my homeland.

“I need to transfer $1,056.62, but this amount exceeds my card’s international transaction limit.”

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Since I had an individual account

may seem like an insurmountable

with a higher limit, I asked her to

and discouraging barrier to

make me a domestic transfer. As

doing business is, for us Africans

soon as I received it, I made the

passionate about technology, an

payment. But it didn’t go through.

opportunity to develop creative and

So, I contacted my bank manager,

disruptive solutions. And, guess

who explained that they needed

what? That’s exactly what we have

an invoice issued by my cousin’s

been doing. It’s true that we are far

supplier to approve the transaction.

from where we’d like to be but to

After a few hours of back-and-

move forward, we must recognise

forth, we finally managed to

what has been achieved, replicate

complete the payment.

what has worked, correct what

This story perfectly illustrates the reality of a continent that still struggles to address simple, lowcomplexity issues. What for many

hasn’t, and above all, keep paying attention to Africa’s real problems, and needs. The market is calling out. We need to listen to it.

Digital economy hotspot One of the main signals that business leaders, developers, product managers, and policymakers must watch comes from digital commerce. African consumers have never used technology as much as they do now to purchase products and services.

And the good news is that this trend will intensify further. Data from the World Data Lab analysed by EBANX shows that Africa will see tripledigit growth in consumer spending over the next decade. Some rising countries are among the fastestgrowing regions in the world. The ones expected to accelerate the most are Ethiopia (449%), Egypt (127%), Kenya (120%), Morocco (107%), Ghana (105%), and South Africa (42%), per the World Data Lab. In 2024 alone, we will see an additional 10 million new consumers in our region, placing us second in the global growth ranking, behind only Asia. This strong pace will continue, and by 2030, over 1 billion adults will be digital consumers in Africa, a figure that would currently represent 71% of the continent’s population, according to United Nations data.

This exponential increase in Africans with purchasing power makes the continent a truly digital economy hotspot across various sectors, with growth rates surpassing the global average, according to Beyond Borders, EBANX’s annual study about the digital market and payments in rising economies. This has been happening in sectors like cloud computing, online retail, digital advertising, streaming, gaming, and online education, which are expanding nearly three times

faster than the worldwide rate.

This is why, at EBANX, we consider Africa the next frontier for digital commerce.

But what explains this phenomenon if, as I highlighted at the beginning of this article, Africa faces basic structural challenges that hinder economic and social development? The answer certainly involves Africa’s youth boom, which drives digital demand for goods and services, but it is also intrinsically linked to three characteristics that define the African tech market: creativity, innovation, and resilience.

The biggest trend in today’s payments industry I could use the example of the revolution that mobile money brought to Africa’s financial ecosystem, but that’s already well-known. This solution is widely recognised around the world as an outcome of the originality and boldness inherent in our industry.

So, I will highlight another equally visionary product: Fawry, in Egypt. In a country where 64% of the online sales volume is paid with cash (PCMI data analysed by EBANX), this African technology is enabling consumers to make payments via vouchers or QR codes, including in the digital commerce, even if they don’t have bank accounts – something that applies to seven out of ten Egyptians. It’s both simple and revolutionary. It’s no surprise that this method is now used by over 52.5 million people, practically half of the country’s population.

Fawry exemplifies perhaps the biggest trend in today’s payments

industry: the relentless pursuit of adapting to consumer behaviour rather than forcing them to adapt to what I believe they want. In other words, it’s about meeting people at the stage they’re at. Providing this type of service with security, efficiency, and reliability is not only about technology but also about understanding real-life challenges and proposing solutions that prioritise a seamless and standardised consumer experience.

This human, sensitive, and indeed, very intelligent business approach has redefined not only traditional payment methods, such as cash, but also the way in which the low level of banking access in Africa is addressed – a critical issue that has historically hindered its social development. It’s no coincidence that financial inclusion is cited by the United Nations as a key indicator for eight of the 17 Sustainable Development Goals for 2030. So how does this work in practice? The book BoxBreakers!,

by Fredda McDonald, tells an inspiring story that answers this question.

Ester, a Kenyan housewife, mother of five, and married, had to juggle raising her family because her husband, the primary breadwinner, used to spend nearly all his income on banana beer. Her fate began to change with the advent of mobile money. With formal access to lowcost banking services, Ester secured a loan from a local cooperative to start her own business and received mentorship and professional guidance. It worked so well that she ended up employing two of her children and her husband. Now, the men of her house work in Ester’s banana beer factory. What goes around comes around.

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A collective effort How many Esters are there in Africa? And how many more will there be once we overcome obstacles like the continent’s inherent fragmentation which partly drives the siloing of payment systems? Many, many more than today, I have no doubt. Interconnection and interoperability remain critical issues preventing the region’s homogeneous development.

The “Big Four” – Kenya, Egypt, Nigeria, and South Africa – are leading the charge, yet they are isolated from one another and, worse, from those following behind. This creates an inequality

that ultimately works against them all. Add to it profound differences in technological maturity, regulatory frameworks, infrastructure, level of government support, and literacy.

Overcoming such complex obstacles necessarily requires a collective effort from all stakeholders. This is precisely the approach that EBANX has taken since arriving in Africa two years ago. In order to provide consumers in 11 African countries with access to goods and services available worldwide, we have established strategic partnerships with local companies, hired industry specialists from

Wiza Jalakasi

Director, Africa Expansion EBANX

the region, collaborated with regulatory institutions, and thoroughly studied the technology behind each market’s preferred payment methods. This work as a global payment aggregator enables merchants to operate across different countries in a seamless and more strategic way, minimising the effects of the fragmentation that used to keep them away from the continent.

Of course, there is still much to be done. New technologies like blockchain, Web3, and DeFi are highly promising and have the potential to further support efforts to build a bright future for Africa. In the payments industry, these innovations significantly enhance three fundamental pillars: security, transaction efficiency, and user experience. They enable a smoother purchasing journey for the consumer, lower costs for processing payments, and greater reliability at every stage of the process. The natural consequence of all this is an increase in conversion rates, which positively impacts the entire digital economy.

The future of digital payments in Africa is bright, but getting there requires more than just optimism.

Realising its full potential requires collaborative efforts to overcome infrastructure hurdles, ensure regulatory compliance, and foster financial inclusion. My cousin – and the entire continent – is rooting for us.

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Leveraging

Digital transformation in Africa through Emerging Technology

T

he need for a continuous modernisation of digital products and services cannot be overemphasised owing to the meteoric advancement in science and technology. The advent of Artificial Intelligence - AI and automations have brought a big rethink to how digital solutions are designed, created, and served to consumers. One can say the futuristic imaginations of the early 21st century are beginning to come to reality. This is not to say that there has been a drastic deployment of technology which is out of the ordinary, but it will relate well to say a clearer vision and path for redefining technology and digital services is being set. Adaptive and augmented realities have come to stay and can only get better, and the thought of having to shelf off some of one’s brain tasking schedules for an adaptive AI solution gives the relief to focus on what matters ahead.

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It is also worth noting that there is the need for properly tendered data, and data storage as these realities fuel the availability of data to create patterns that define intelligent outcomes needed to handle futuristic tasks. The need for data collection to understand business, sales, customer trends and patterns has intensified the overactive use of browser cookies, intentional survey analysis about products, services and goods reviews, traffic information from speed and motion cameras, entry and exit data information, transactions from financial institutions, parking and road users from tolls and the list goes on. The need for this data cannot be overlooked as it forms the bedrock of any intelligence or algorithms that can birth several forms of automations, integrations for the emergence of these contemporary technologies.

Another astonishing digitisation is the increasing use of metaverse as a means of virtual augmentation and reality. Most of the top digital and tech institutions are beginning to focus more on leveraging this artificial reality as a means of promoting their businesses, services, and superiority over other contemporaries. Accenture in recent years have been a foremost driver of the use of augmented reality and are well convinced that they can get their spread of global clients to subscribe to their new inventions as a means for ease of doing business. Institutions like Google and Apple have constantly been rolling out Virtual Reality devices, software, and applications that have enticed their users and made them begin to have a closer perspective towards what the world of Artificial Intelligence can offer.

of HoloLens (Microsoft) AR to perform surgical procedures which give accessibility to information and visualisation of data in real time to surgeons during surgery, making diagnosis, treatment, and procedures faster and more reliable.

The beauty and ease of life and doing business that come or would eventually come with these realities can be well pictured with an open mindset, and so far, there hasn’t been any disadvantage bar consumer privacy that has outweighed the positivity and advantages surrounding the use of AI. The most common of these advantages is seen in the automation of production lines, employee workflows, recurring tasks and schedules, self-driven vehicles, robotic engineering, bots, virtual reality, and trending.

Immersive virtual reality is now being used for simulated on-field training, teaching, meetings, and interviews. This model not only brings individuals continents apart into closer realities, but it also creates timesaving, cost-effective, and agile ways to getting things done. Another use case is seen in the health sector where augmented reality – AR is driving the use

Emphatically, the availability of proper data can only bring transformation to any institution and the effectiveness of their participation in the new digitisation conundrum would readily be a positive leap. These said, one can affirm that the domiciliation of this modern technology is not geographical, and it is important that Africa is not left out of this movement. Another can argue that digitisation in Africa may not always make the rounds in the world of newer inventions, but it will always be said that Africa possesses the environment where disruptive transformation can be easily reckoned and is still a bedrock for innovative ideas and business re-imaginations.

This is owed to the abundance of natural, human, and multicultural resources embedded in the continent.

While the fundamental question of data gathering and availability would be the first objection for any progressive integration of digitisation into Africa, it is most proven that with the right and important first steps, this can be surmountable. The issue would not be the availability of data resources but the right technology and tools to harvest these chunks of data.

This is the most expensive part of the contemporary trends, and it is what big corporations like Google

and Apple feed on to promote their new realities. Another restraining argument would be around the political unrest in the continent which has marred the influx of corporates pitching their branches and even worse led to the exodus of a few ones whose stakes were in developing their brands in the continent.

However, these negativities are not enough recipes to deter the integration of these new forms.

The issue of data gathering is a global thing, and while one can close an eye towards the general issue of privacy invasion and the possibilities of socially engineered attacks when personal information gets to the hand of wrong entities, data gathering becomes a continuum and neverending process. The fact that newer trends are emerging daily means there must be the right set of data to be collected to improve these trends and transform them into what AI would understand, learn, and feature. This alone proves that if Africa started today or chose to integrate what it currently has, the possibilities of matching the world realities are quite unending. So, first things first, we need to get our infrastructure, policies, support systems, vision, and corporate cooperation right.

It is also important to note that collaborative efforts and research would help achieve these realities faster than having to saddle a few daring ones with whatever is made available to them. Example of this is seen with Accenture, KPMG and other digitisation firms who leverage the contributions of their

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global clients to create shared solutions that not only benefit one (the firm), but all involved. With the right investors and political support, research institutes in foremost academic institutions in the continent could be used to front this campaign. Similarly, bigger corporations in Africa can take the bold step to replicate or partner with already established western companies.

The next question would be what sources of data would be needed to fuel these realities. Before answering this question, it is worth emphasising again that Artificial Intelligence, Virtual realities, and augmented systems need chunks of data with proper availability to process and make precise predictions and decisions.

With a more conscious policy, the continent can begin to emphasise and enforce the need to have their footprints online. Health record keeping needs to be taken off files and hard materials into digital systems with availability to less personal patient data. Another data pool which may be readily available is the Census and Political registration of various geo-political zones that participate in these exercises. It is a great development that most of the leading African countries are beginning to digitise their voters’ registration and voting exercises which would be a great pool of data if it can be made accessible with the right policies.

Super Malls and businesses also have a great deal of daily data stored away in the hard drive of their monitoring units. With the

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right incentive, these businesses can be easy contributors to national or geographical data gathering. Telecommunications, Mobile phone, Internet providing corporates can be made to provide access to the daily data they collect off the citizens of nations where they are domiciled. This comes with properly structured user policies and incentives for giving such access. Grassroot digital banking is currently being driven massively by the freedom given through the financial inclusion drive for banked and unbanked individuals. This can be seen driven by indigenous Fintechs across the continent.

These tech companies command a whole lot of data even from the most remote locations where technology has been minimal and constrained. These raw data can do a lot in transforming the needs of these communities and help usher in tailored realities from generative intelligence.

Once data gathering, data models and storage is gotten right, the next question would be what use cases there are to solve that could not be a direct plug to existing intelligence and augmented realities. The peculiarity of the African terrain, diversity in culture and languages make the need for tailored solutions become profound and evident. To buttress these peculiarities, one can focus on a use case in digital banking across Africa. Having in recent times drawn a contrast between banking services in Africa and Europe to be specific, it is obvious that the driving factors for security, customer reliability, fraud, customer complaints and overall

success of financial institutions in both continents differ. For example, the use of USSD as a means of short code banking is prominent in Africa but an avoidable luxury in Europe. Also, the means of KYC verification for onboarding is also somewhat different. While one can do face capturing and upload relevant documents and have access to fully functional accounts in some countries in Europe, this method would have to be controlled in most institutions across Africa.

This generally centres around inadequate real time security data to verify an onboarding user. In most cases a customer gets access to basic accounts and would probably have to walk into a bank’s branch to complete their verification processes.

This said, the following can highlight some of the benefits tailored AI, AR, VR can immediately bring to digital banking in Africa: •

Smarter targeting of customers by products – In most cases, digital sales is targeted at every prospective person.

With AI, it would be easy to analyse impending and existing customers’ data to identify what their needs are and what product benefits them more.

With this customised approach, it is easy to have a win-win customer influence and retention.

•

Better insight about customers – nothing beats having a summarised insight of who

your customers are before and when they reach out. It not only builds customers’ trust but also creates a strategic approach to satisfying them. AI can help identify spend patterns, vulnerabilities, and sentiments in customer dealings much quicker and better than humans, and this in turn frees up time any personnel would use to analyse such information.

•

•

Improved efficiency – apart from AI creating time saving experiences, it enables processes and services to be automated and optimised.

Automation is another part of generative AI that is fast improving globally, and it really helps to greatly reduce the stress of carrying out repeated tasks, monitoring, drafting proposals, identifying sales opportunities, scheduling of follow ups and the list continues.

Elimination of trial and error – the precision of predictive modelling algorithms used in data science and AI would not be overemphasised especially when each prediction comes with a percentage accuracy.

With the right set of data, generative systems can properly advise about financial processes, strategies, and campaigns that would help drive assured profitability. This approach greatly reduces risk, loss, and time inherent from any traditional trial and error method.

•

Near-human interactions – the use of chatbot in customer service is generally improving with time even across Africa.

This technology can only become more seamless with the introduction of VR and AR. With a properly structured data approach, conversions driven by these realities can become more intelligent and closer to humans, both in delivering tailored customer service and human-like experiences.

Natural language processing is another means of providing tailored customer experience in culturally diverse continents like Africa.

•

Analytic reporting and interpretation – one of the challenges facing financial institutions in Africa is not knowing what to make out of the pool of customer data and transactions they sit on.

Predictive models can help create instant reporting based on customer historic dealing and generate a pattern that can be easily used to tailor existing and newer products to customers. Another great benefit of analytic AI is to proactively help in preventing fraudulent activities on account holders through valuable insight into their spend patterns, in a faster and efficiently reliable manner.

Digital transformation through AI has come to stay and can only get better. The deployment of metaverse and virtual realities are the most forward-looking ways of business interactions, training, service provisions, and closing distance between humans. In the nearest future, these technologies will become more prominent than the current scope of AI available now, as such time is of essence for Africa to be in tune with the world realities and be open to improving digital processes. As mentioned earlier, the right political interests and policies need to be in place now to have the data prerequisites to build and integrate these technologies.

Olaniran Rasaq Intergration Analyst Infopro Digital

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YOU ARE THE TRAINING DATA In today’s digital world, the phrase “You are the training data” has become increasingly important. But what does it mean, and why should you care?

Training data is the information that artificial intelligence (AI) systems use to learn and make decisions. Think of it like teaching a child to recognise animals by showing them pictures of cats and dogs. The more pictures they see, the better they get at identifying each animal.

Similarly, AI systems learn from the data they are given.

How am I affected?

Every time you use the internet, you leave behind bits of information.

This could be your search history, the websites you visit, the products you buy, or the posts you like on social media. Companies collect this data to understand your preferences and behaviours. They use it to improve their services and make your online experience more personalised.

Using your data can have several benefits, for instance websites and apps can show you content that is more relevant to your interests, while enabling companies to improve their products and services by analysing user data (including yours and mine).

By analysing data, companies and online stores can recommend products that suit your tastes and use that very same data to become more innovative and create new technologies that make our lives easier.

However, there are also concerns about how your data is used and many people worry about their personal information being collected and shared without their consent.

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This is why it’s important to know how your data is being used and who has access to it. If the data used to train AI systems is biassed, the AI can make unfair or discriminatory decisions, and this is why it’s crucial to use diverse and representative data. What are the specific concerns with that? One may be that firms are generating income off your personal data, including by selling it to 3rd parties.

Users want to know what data is being collected and how it’s being used, because transparency helps build trust between users and companies.

How can I stay safe?

As a user, you have the power to control your data, such as regularly reviewing and updating the privacy settings on your devices and online accounts to control what data is collected.

Users can also learn about the data policies of the services they use, as this helps them make informed decisions while navigating the online realm.

Over and above that users can advocate for clear and transparent data practices,

which will help ensure that companies are accountable for how they use your data.

Data holders and/or users of AI also play a crucial role in ensuring data is used responsibly, by enforcing stricter privacy laws to ensure that companies collect and use data responsibly. This includes requiring clear consent from users before collecting their data and ensuring that users have the ability to control their data. While many operators in this space may be trying to do the right thing, the role of the regulator is to set clear and consistent standards that guide the sector towards safe and ethical practices.

Regulators can mandate that companies provide clear and accessible information about their data collection and usage practices. This helps users understand what data is being collected, how it is used, and who has access to it.

It is equally important for regulators to establish guidelines to ensure that AI systems are trained on diverse and representative data as this helps prevent biases in AI decision-making and promotes fairness.

The FSCA may consider mandating that companies provide clear and accessible information about their data collection and usage practices, ensuring transparency and helping users understand what data is being collected and how it is used. Additionally, companies should be required to obtain clear consent from users before collecting their data, giving users control over their personal information.

Stricter privacy laws should be enforced, including regular audits and penalties for non-compliance, to ensure responsible data collection and usage. To prevent biases in AI decisionmaking, the FSCA should consider establishing guidelines that require AI systems to be trained on diverse and representative data.

Nowalzi Hlophe Senior Fintech Specialist: FSCA Co-Lead of the Regulatory Guidance Unit

Alternatively, regulators can implement policies that hold companies accountable for their data practices, this includes regular audits and penalties for non-compliance with data protection regulations.

Members of the public also need to be educated about their data using awareness campaigns, as this enables them to make informed decisions about their data.

While protecting user data, stakeholders can equally create an environment that supports innovation can, as this includes providing guidelines that balance data protection with the need for technological advancement.

Financial institution are required by law to treat their costomers fairly if you think you have been treated unfairly, lodge a complaint with the provider, and if that does not address your concerns, you are entitled to lodge your complaint with an ombud who is a neutral party that will assess the complaint free of charge.

Public awareness campaigns are also essential to educate users about their data rights and how to protect their privacy, enabling them to make informed decisions. Furthermore, the FSCA should consider creating guidelines that balance data protection with the need for technological advancement, fostering an environment that supports innovation while ensuring ethical data practices.

Regular monitoring and accountability measures, such as audits and penalties for non-compliance, will help maintain high standards of data protection. By implementing these recommendations, the FSCA can build trust between users and companies, promote ethical data practices, and ensure that data is used responsibly while fostering innovation in the digital age.

Indeed, you are the training data.

Your online actions and behaviours help shape the AI systems that are becoming a part of our daily lives, and by understanding how your data is used and taking steps to protect your privacy, you can navigate the digital world more confidently. Regulators also have a vital role in ensuring that data is used ethically and responsibly, protecting users while fostering innovation in the digital age.

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Leading the Way: Olusegun Alebiosu,

CEO, FirstBank Group,

on Innovation, Inclusion, and the Future of Finance Leading a financial institution

banking industry, and we continue

services and user-friendly features

through a period of rapid

to leverage innovative technology

to over 8.3 million active users. The

technological change requires

to develop products, services and

Bank also has a robust agent banking

vision, adaptability, and a deep

initiatives that meet the needs of our

network – FirstMonie - which has

understanding of the customer.

customers.

revolutionised how customers access

Olusegun Alebiosu, CEO, FirstBank

financial services. With over 270,000

Group, embodies these qualities. In

These awards are a testament to the

agents spread across 772 of the 774

this exclusive interview, Olusegun

dedication of our team, the trust of

local government areas of Nigeria,

shares insights into the Bank’s

our customers, and our steadfast

we remain the most expansive

digital transformation journey, its

focus on making financial services

bank-led agent banking business in

commitment to financial inclusion,

accessible to everyone. They are

Africa. This initiative also bridges

and the strategies driving its

the cornerstones of our mission to

access gaps, taking banking services

continued success.

empower individuals and businesses

to rural communities, especially the

across Nigeria and Africa with the

unbanked and underserved.

DBA: Congratulations on winning the

best financial services possible.

awards for the Most Innovative Digital

The recognition will inspire us to

Also, with the introduction of our

Bank – Nigeria and Best Financial

do even more in support of Nigeria

fully automated Digital Xperience

Inclusion Services Provider – Nigeria.

and Africa’s economic growth and

Centers (DXCs) across strategic

How does it feel to be recognised for

development as we continue to serve

locations in Nigeria, FirstBank offers

your efforts in digital banking and

our customers in their respective

contactless, paperless services to its

financial inclusion?

communities.

customers. The DXCs are designed

OA: Thank you for these recognitions,

DBA: FirstBank has been at the forefront

robots - that assist customers with

they are a humbling affirmation

of digital innovation in Nigeria. What

their transactions; AI-powered video

of our commitment to excellence

are some of the key initiatives that led

banking; and self-service kiosks so

in driving digital innovation and

to the Bank’s success in being named

that they can perform various tasks

financial inclusion in Nigeria.

the Most Innovative Digital Bank of

independently. And even though

2024?

there are no human interactions at

with features such as humanoid

the DXCs, customers can walk in 24/7

For the records, we won the award - Best Financial Inclusion Services

OA: FirstBank’s success stems from

to perform all their transactions and

Provider – Nigeria in 2023 and

a relentless focus on technology to

enjoy banking services that would

winning it for the 2nd year in a row

enhance customer experience. Our

be provided in a traditional branch

makes it more gratifying.

innovative strides are anchored on

where there are staff.

customer-centricity and leveraging FirstBank in its over 130 years of

cutting-edge technology and

In 2018, FirstBank launched a Digital

existence has pioneered several

channels like the FirstMobile App,

Innovation Lab, first of its kind in

financial solutions in the Nigerian

which offers seamless banking

the Nigerian banking industry. This

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lab serves as a hub for ideating and

•

Financial and Digital literacy

educate individuals, especially the

implementing innovative solutions

gaps: People in most underserved

younger generation, about banking,

that drive new and redefined

communities lack basic literacy

budgeting, and savings. We have

banking experience for our teeming

in finance and very importantly,

continued to witness incremental

customers, especially the young and

digital tools which are very key in

improvement in customers’ adoption

tech-savvy demographic. We also

levelling up with the rest of the

of self-service banking solutions

organise Technology boot camps

world, especially as banking has

- today, over 95% of customers’

to create a pool of skilled resources

fast advanced to self-services.

transactions are processed on self-

for the ‘tech’ functional work areas

FirstBank has continued to

service digital/alternative channels.

within and outside the Bank.

advance financial literacy across all communities and going as

DBA: Can you elaborate on how

These initiatives demonstrate our

far as starting with pupils in

FirstBank leverages technology to reach

ability to adapt to changing customer

elementary schools to give them

the unbanked population in Nigeria,

needs while staying ahead in a rapidly

an early advantage. This has also

especially in rural areas?

evolving industry. Furthermore, our

been continually extended to

partnerships with fintech companies,

adults in the most remote areas of

OA: Technology is central to our

and robust cybersecurity systems

the country. Our banking agents

efforts in reaching the unbanked and

have continued to set us apart as an

are trained prior to onboarding

underserved. With our FirstMonie

innovative leader in the industry.

and periodically, to ensure that

Agent Network, we provide banking

they can effectively use the

services like deposits, withdrawals,

DBA: In terms of financial inclusion,

digital tools and perform banking

funds transfers and bill payments

what challenges have you encountered

transactions for their customers

through different agent locations,

while trying to extend services to

seamlessly.

thereby reducing the complexities of

underserved communities, and how has FirstBank overcome these challenges?

customers in remote areas accessing - Mistrust of formal financial

physical branches. Like I mentioned

institutions due to cultural barriers.

earlier, our *894# USSD banking

OA: The journey toward financial

platform is a game-changing

inclusion and reaching underserved

At FirstBank, we’ve made significant

channel that allows customers to

communities in Nigeria is not without

progress in tackling these issues

perform transactions with ease

its own challenges. We have had a fair

through the launch of the Firstmonie

on their phones. The Bank also

share, and I would mention a few:

Agent Banking Network, which

deployed the FirstMonie digital wallet

•

currently has over 270,000 agents

which has enabled partnerships

Accessibility due to limited

serving the underbanked and

with telecom providers to ensure

infrastructure: Many rural areas

underserved areas. These Agents are

financial access even in the most

lack the necessary infrastructure

part of the communities, they are well

remote areas. By integrating these

to access them in terms of road

known to the people, hence, easily

technologies with localised support

network and technological

trusted. This engenders the Bank’s

and financial education programmes,

limitations. These limit the

penetration amongst the people in

we are effectively narrowing the gap

opportunities to host a brick-

these communities.

between the banked and unbanked populations.

and-mortar banking branch in these locations. Despite this

Our USSD Banking, *894# also

challenge, FirstBank till today,

enables customers in rural areas as

DBA: How has FirstBank’s digital

has the largest branch banking

well as customers who have little

transformation journey evolved over

network in Nigeria, and to

knowledge of complicated devices

the years, and what role has leadership

surmount the identified access

to bypass smartphone intricacies

played in ensuring its success?

challenge, we have leveraged

and internet constraints to access

our Agent banking business

banking services at their convenience.

OA: Since its establishment in 1894,

network to reach even the most

Additionally, we’ve partnered with

FirstBank has consistently embraced

remote and difficult to access

different organisations and facilitated

technological advancements to

communities in Nigeria.

financial literacy campaigns to

enhance its services. In 1991, 23

FirstBank introduced its first ATM

we’ve remained relevant in an ever-

women, and small business

to Nigerians and pioneered instant

changing industry.

owners to demystify banking and

debit card issuance in the early

empower communities. Through

2010s; these have grown to over

DBA: With the rapid changes in fintech

our FirstBank Sustainability Centre

13 million active cards currently in

and digital banking, what do you see

and partnerships with organisations

use by its customers – one of the

as the future of banking in Nigeria, and

like Junior Achievement Nigeria,

largest card penetrations in Africa.

how is FirstBank preparing for the next

we constantly promote financial

There have been several other

phase of digital innovation?

literacy amongst youth and MSMEs.

innovative solutions birthed by the

Additionally, through several

Bank’s transition to digital banking

OA: The future of banking in

innovative products like our

through its “Century 2” programme.

Nigeria will be defined by hyper-

FirstMonie Wallet, FirstCredit and

Today, well over 95% of customers’

personalisation, automation,

FirstAdvance loan solutions, we

transactions are carried out on digital

embedded banking, sustainability

cater to the needs of our customers

channels.

practices and collaboration.

especially the underserved,

Open banking will also reshape

and through the large network

Other recent innovations of the Bank

financial services and as a foremost

of FirstBank Agents in remote

include the launch of a fully digital

financial services provider in

communities, we ensure that banking

branch - Digital Xperience Centres

Nigeria, FirstBank has strategically

services are accessible to everyone.

(DXCs) in 2021. The DXCs feature

positioned itself by preparing for

Through a combination of all these

humanoid robots, AI, and video

this future through high investments

efforts, the Bank is steadily and

banking for seamless, human-less

in advanced data analytics,

significantly contributing to Nigeria’s

banking.

cybersecurity and customer data

economy and ensuring poverty

protection to provide personalised

reduction amongst its citizens.

To bridge the literacy gap, FirstBank

banking experiences to the customer.

also developed the *894# USSD string

We are also collaborating with

DBA: How does FirstBank foster a

code for simple mobile banking,

fintechs to deliver innovative

culture of innovation within the

attracting over 17.1 active million

solutions. With the expansion of our

organisation, and what steps do you

users. This is in addition to catering

Digital Innovation Lab and the launch

take to ensure your teams stay ahead in

to its tech-savvy customers through

of Digital Xperience for consistency

such a competitive industry?

digital platforms like FirstMobile

Centres in different locations of

App and FirstOnline, serving

the country, we are exploring

OA: Innovation is embedded in

over 8.3 million users. Through

emerging technologies like Artificial

FirstBank’s DNA. We foster it by

these efforts, FirstBank remains a

Intelligence and LLM (large language

creating a dynamic work environment

transformative force in Nigeria’s

model) to enhance transparency, stay

that encourages creativity and

economy, committed to innovation

ahead of industry trends and ensure

and financial inclusion.

security in financial transactions.

FirstBank’s solid corporate

DBA: Financial inclusion is a critical

governance and thought leadership

element for economic development.

have been instrumental in driving

Could you share more about FirstBank’s

this evolution. With a forward-

broader strategy to improve financial

looking approach, our management

literacy and access to banking services

team fosters a culture of innovation,

in Nigeria?

invests in capacity-building, and ensures alignment with global best

OA: Our financial inclusion

practices. This strategic vision has

strategy revolves around three

enabled us to anticipate trends

pillars: accessibility, education,

and position FirstBank as a leader

and empowerment. The Bank has

in digital banking. By staying

launched several financial literacy

proactive and customer-centric,

programmes targeting students,

24

collaboration which includes:

to driving innovation, empowering

done up to this point in time.

communities and enabling financial •

•

•

Providing continuous training in

inclusion across all demographics.

emerging technologies for our

The Bank is also committed to making

Despite all that we have achieved

employees.

financial services accessible to all,

in digital innovations, we remain

•

b. Elevated Customer Experience:

while shaping the future of banking

committed to improving overall

Embedding an agile methodology

through technology and inclusion. We

customer experience across all

in our processes to adapt swiftly

will continue to build on our over 130

our touch points. To this end,

to changes.

years legacy, ensuring that we deliver

we would be leveraging leading

exceptional value and contribute

technologies (such as robotics

Rewarding innovation through

meaningfully to Nigeria’s economic

and Gen AI) and our deep

incentives and recognition

development.

understanding of the customer’s journey to further simplify our

programmes.

DBA: Finally, as CEO, what are the top

internal processes towards

This culture ensures that our teams

three priorities for FirstBank in 2025,

making them a lot easier for our

remain competitive and proactive in

and how do these align with your

customers to transact and do

addressing industry and customer

long-term vision for the Bank’s role in

business with us.

demands.

shaping Nigeria’s financial landscape?

•

c. Strategic Partnerships &

DBA: Winning two prestigious awards

OA: Coincidentally, 2025 will mark

Ecosystems: As we begin the new

back-to-back is no small feat. What

the beginning of a new strategic

strategic plan cycle, we would

message would you like to send to your

plan cycle (that is, the 2025 –

be more deliberate in creating

customers, stakeholders, and the wider

2029 strategic plan cycle) for us at

a stronger network of strategic

industry about FirstBank’s vision for the

FirstBank. Therefore, our immediate

partnerships that will support our

future?

priority is to consolidate on the

platform business and ecosystem

gains we have made in the outgoing

playbook. This would see us

OA: These awards are a testament

2020 – 2024 cycle while pursuing

scaling current efforts across

to the trust our customers and

new growth levers in the new cycle

some of our existing platforms

stakeholders place in us. To them,

for enhanced market dominance

and services (such as the Biller

I say: Thank you for your loyalty

and leadership. In this regard and

Aggregator Platform -BAP, LIT

and belief in FirstBank. Our vision

amongst other considerations, these

App, etc.) as we seek to deliver a

remains clear - To be Africa’s ‘Bank’

three strategic priorities will receive

beyond-banking proposition to

for consistency of first choice. To

elevated focus in 2025.

our teeming customer base.

ensure this, we remain committed •

a. Footprint Expansion: As a Bank

All these priorities are well aligned

with a vision to be “Africa’s Bank

to our vision as an organisation and

of ‘first choice’ for consistency”,

our aspiration to consolidate on

we would be doubling down on

our leadership position within the

our expansion plans in 2025.

Nigerian financial services landscape,

This effort will see us both grow

leveraging cutting-edge technology

market share in existing markets

and a bouquet of differentiated

and expand into new strategic

customer value propositions.

markets on the African Continent & certain select global markets outside the continent. Through this expanded footprint, we aspire to acquire new capabilities and market reach that will enable us

Olusegun Alebiosu CEO, FirstBank Group

to serve our customers’ needs in more unique ways than we have 25

The Crucial Role of Government in the African fintech ecosystem 26

The Rise of Fintech in Africa

If one considers that South Africa is

Africa’s fintech revolution can be

systems on the continent, the

traced back to Kenya’s M-PESA, launched in 2007. M-PESA provided a mobile-based solution to the country’s inefficient banking system, quickly gaining popularity and spreading to other African nations.

Today, Africa accounts for nearly half of the world’s mobile money accounts, with countries like Nigeria, South Africa, and Egypt leading the

the most advanced of the banking population remains under-banked with less than 5% of small businesses able to access working capital.

For the sector to achieve greater market penetration, it needs to be able to attract capital and ultimately see more businesses raise capital to expand operations or reach Initial Public Offering (IPO) stage.

charge in fintech innovation.

There have been several African success stories. These fintechs are primarily in payments, enabling more efficient, reliable transaction amongst consumers and businesses including digital native fintechs such as Yoco, Opay, Flutterwave and Moniepoint, and telco backed fintechs including MTN MoMo, M-PESA, Airtel Money and Orange Money. Other leading segments are banking and remittances where players including South Africa’s Tyme Bank have made significant

I

n recent years, the African fintech ecosystem has emerged as a dynamic

and transformative force, significantly advancing financial inclusion across the continent.

Much of this growth has been fuelled by innovative private sector financial technology solutions, addressing the challenges faced by traditional financial services. However, to fully unlock the potential of fintech and ensure its sustainability, government intervention in developing a comprehensive regulatory framework is essential.

market share gains and are exploring international expansion.

Highlighting the attractiveness of the sector to global investors, a landmark transaction in 2024 saw global payment leader Mastercard invest $200m in MTN Group Fintech, following a $100m investment in Airtel Money as it seeks to expand access to digital payments in Africa.

Despite these successes, significant challenges remain. Many African countries still struggle with financial exclusion, particularly in rural areas.

Fintech solutions, such as mobile money, micro-lending, and digital payment platforms, have shown great promise in bridging this gap.

The Importance of a Regulatory Framework While innovation can be driven by the private sector, it is imperative that frameworks for the following are in place: Consumer Protection: Regulatory oversight ensures that fintech companies operate transparently and ethically, protecting consumers from fraud and ensuring the security of their financial data.

Market Stability: Regulations help maintain stability in the financial market, preventing the kind of volatility that could undermine trust in fintech solutions.

Encouraging Innovation: Clear guidelines and supportive policies can foster innovation by providing a predictable environment for fintech companies to develop and deploy new solutions.

Attracting Investment: A wellregulated fintech ecosystem is more attractive to investors, both local and international, who seek a secure and stable environment for their investments.

27

Nihmal Marrie

Managing Director and Partner Boston Consulting Group, Johannesburg

The Path Forward for Africa To replicate these successes, African governments must take a proactive approach in developing and implementing regulatory frameworks

Kitso Lemo

tailored to their unique contexts.To

Associate Director

this end, we’re encouraged by the

Boston Consulting Group,

work done by the Central Bank of

Johannesburg

West African States who are driving frameworks for interoperability

Learning from Global Successes African governments can draw valuable lessons from the successes of fintech ecosystems in South America and Asia.

Brazil’s fintech sector has flourished due to proactive regulatory measures. The Brazilian Central Bank’s Pix Open Payments System has fostered competition and innovation, enabling fintech companies to offer diverse financial services.

The Pix offering has now exceeded over 150 million users annually – greater than credit usage in the region. This has resulted in increased financial inclusion and improved access to credit for underserved populations.

In Asia, countries like Singapore and India have created supportive regulatory environments that encourage fintech growth.

Singapore’s Monetary Authority has implemented a regulatory sandbox, allowing fintech companies to test new products under relaxed regulatory requirements. India’s Unified Payments Interface (UPI) has revolutionised digital payments, thanks to a collaborative effort between the government and private sector.

28

for the fintech ecosystem. Ghana is another example of a country taking positive steps here.

Here are key steps that can be taken: Stakeholder Collaboration: Governments should collaborate with fintech companies, financial institutions, and other stakeholders to understand the needs and challenges of the ecosystem. Publicprivate partnerships can drive effective regulatory measures that

environments make this difficult.

African countries can benefit from regional cooperation in fintech regulation. Harmonising regulations across borders can facilitate crossborder fintech operations and enhance the overall competitiveness of the African fintech ecosystem.

Capacity building of skills: As the fintech ecosystem is maturing, there will be increased competition from skills across various sectors including insurance, banking and telecommunications. This will include developing not only skills around product capabilities, legal and compliance but also technology roles such as system architects, developers, cyber-security specialists and data scientists. Investing in these talent pipelines at scale will be key to unlocking value.

support innovation while ensuring consumer protection.

Regulatory Sandboxes: Establishing regulatory sandboxes can provide a controlled environment for fintech companies to experiment with new products and services. This approach allows regulators to closely monitor innovations and adapt regulations

Conclusion The African fintech ecosystem holds immense potential to drive financial inclusion and economic growth. However, the realisation of this potential depends on the development of

accordingly.

robust regulatory frameworks.

Capacity Building: Governments

of South America and Asia

should invest in building the capacity of regulatory bodies to effectively oversee the fintech sector. This includes training personnel, upgrading technological infrastructure, and fostering a culture

By learning from the successes and adopting a collaborative, proactive approach, African governments can create an enabling environment for fintech innovation. This, in turn, will ensure that fintech

of continuous learning.

solutions are sustainable,

Regional Cooperation: We need to

driving the continent towards a

recognise that fintech businesses want to cross borders and enable consumers and businesses to send money across the continent, but the different geographies and regulatory

secure, and accessible to all, more inclusive and prosperous future.

29

ACCESS BANK’S

COMMITMENT TO

DIGITAL BANKING SERVICES In an era where digital transformation is reshaping industries and redefining customer experiences, Access Bank has become a major player in driving digital innovation in Nigeria’s banking sector. With a steadfast commitment to digital banking services, Access Bank is not only enhancing its digital presence but also revolutionising the way its customers interact with financial services.

INTRODUCTION Access Bank has long been a pillar of strength and reliability in Nigeria’s banking industry. With a rich history of providing exceptional financial services, the bank has consistently demonstrated its commitment to innovation and customer satisfaction.

Access Bank is on a mission to become Africa’s leading bank, and digital innovation is at the heart of our strategy. With over 60 million customers across 13 countries, we have transformed banking for millions through innovative digital solutions. Today, Access Bank is leading the digital banking revolution in Nigeria, leveraging innovative technology to deliver seamless and efficient banking experiences to its customers.

30

The app has several capabilities, one of which is the Bank to Broker feature which facilitates seamless stock and investment trading. This innovative feature encompasses a spectrum of functionalities, including customer onboarding, wallet funding, purchase and sale of stocks, user investment portfolio management, and easy withdrawal from the wallet account to the bank.

INNOVATIVE DIGITAL BANKING SERVICES At the heart of Access Bank’s digital transformation is its suite of userfriendly platforms designed to make banking more accessible and convenient.

The bank’s multi-award-winning Access More app, online banking, and USSD platforms are intuitive and easy to navigate, offering customers a wide range of services at their fingertips.

With over 5.4 million active users, Access More has become an indispensable part of the daily life of our customers. In line with our commitment to serving customers across the continent, we have launched the app in 12 African countries including Cameroon, DR Congo, Gambia, Ghana, Guinea, Kenya, Mozambique, Rwanda, Sierra Leone, South Africa, Zambia, and Nigeria.

Access More empowers customers and offers a comprehensive solution that allows for seamless bill management, from essential utilities like airtime, data, and electricity to larger obligations such as education fees and taxes, international airtime, sports, foreign currency transfers, and other needs.

Access More is committed to providing a holistic financial experience, catering to the diverse lifestyles of our customers.

The lifestyle section of the app contains features like Bancassurance where our customers can secure their financial future with pension contributions and explore insurance options. Travel enthusiasts can book flights seamlessly with our My Flights feature. App users can also purchase event tickets, e-vouchers, or gift cards.

Additionally, the bank is a leader in Nigeria’s digital lending revolution.

Our belief in financial inclusion has driven us to develop a diverse range of loan products tailored to meet the unique needs of our customers. From individuals seeking to cover unexpected expenses to SMEs requiring capital for growth, we offer flexible and accessible lending solutions.

Innovation is at the core of Access Bank’s digital strategy. The bank has integrated several innovative features into its digital platforms to enhance the customer experience. AI-powered chatbots provide instant assistance and personalised recommendations, making banking more interactive and efficient.

Some of the attributes of the digital platform include improved UI/UX, AI-driven experience, account opening support, and improved customer journey. Biometric authentication adds an extra layer of security, ensuring that customers’ accounts are protected from unauthorised access.

Additionally, a reward and loyalty program has been seamlessly integrated into the Access More app.

This allows users to earn points for everyday transactions like airtime purchases and bill payments. These points can then be redeemed for a variety of rewards. The rewards program has over 1.69 million subscribers with 73,804,396.8+ points awarded, and over 24,717,588.36 points redeemed year to date, demonstrating the program’s popularity and effectiveness in driving customer engagement and loyalty.

Access Bank is committed to driving innovation both within the bank and across the broader ecosystem. To this end, the bank has launched several initiatives, including the Africa Fintech Foundry (AFF). AFF is a Pan-African startup incubator and accelerator that supports founders and businesses in their journey to innovation and scale.

By fostering a network of founders, mentors, investors, and partners, AFF empowers entrepreneurs to develop groundbreaking solutions.

Africa FinTech Foundry also develops products, services, and initiatives that build an innovative culture within the bank. Access Bank’s internal culture of innovation is characterised by a commitment to experimentation, risktaking, and continuous improvement.

The bank empowers employees to think creatively and challenge the status quo. The bank has also fostered a dynamic and innovative work environment. Through its innovative leadership and initiatives, Access Bank is making a significant impact on key players in the financial ecosystem and promoting digital innovation in fintech and other sectors of the economy.

31

DRIVING FINANCIAL INCLUSION Access Bank is not just focused on enhancing its digital services; it is also committed to driving financial inclusion across Nigeria through its USSD platform (*901#). This platform is specifically designed to cater to customers without internet access, providing them with a seamless and convenient banking experience directly from their mobile phones.

The USSD platform allows customers to perform a wide range of banking transactions, such as checking account balances, transferring funds, paying bills, purchasing airtime, and accessing loans, without the need for a smartphone or internet connection.

Another key initiative driving financial inclusion is our agency banking journey.

We recently launched a mobile platform that helps our agents extend banking services to underserved communities.

Through this initiative, Access Bank has been able to reach remote areas and provide essential financial services, such as Account Opening, Cash Deposits and Withdrawals, Fund Transfers, Bill

Daniel Awe Head Africa FinTech Foundry (AFF)

32

Payments, Airtime Purchase, and other financial transactions.

Additionally, we are one of the few banks in Nigeria offering digital loans to SMEs, empowering businesses with the financial resources they need to thrive. By providing quick access to capital, we are supporting job creation and economic growth. Our range of loan products, including payday loans, quick bucks, school fees, business cash flow loans, asset financing, etc., ensures that we can meet the diverse needs of our customers, and this drives financial inclusion.

THE FUTURE OF BANKING As Access Bank continues to innovate and embrace modern technologies, we are poised to shape the future of banking in Nigeria. The bank’s commitment to continuous improvement and customer-centricity ensures that it remains at the forefront of digital banking. Access Bank is constantly exploring new ways to enhance the customer experience, from developing new digital products to refining existing services.

The future of banking is digital, and Access Bank is leading the charge. By leveraging advanced technologies like Generative AI and Big Data and staying ahead of industry trends, the bank is setting new standards for excellence in digital banking. Customers can look forward to even more innovative features and services that will make banking more convenient, secure, and enjoyable.

CONCLUSION In conclusion, Access Bank is a pioneer in digital banking, committed to delivering exceptional services that meet the evolving needs of its customers.

The bank’s dedication to innovation, financial inclusion, and customer satisfaction sets it apart as a leader in the industry. As Access Bank continues to execute the vision to be “the world’s most respected African Bank,” the investment in digital banking services is evidence of the desire to create a more inclusive and efficient banking ecosystem in Africa.

We are faster, closer and safer With our scale, expertise and deep desire to satisfy your needs, we will deliver exceptional experiences for the moments that matter the most to you.

Africa | Asia | Europe | Middle East

INNOVATING THE FUTURE

TRANSFORMATIVE TECHNOLOGIES FOR INCLUSIVE BANKING

A

frican finance stands at a pivotal juncture. The past decade has witnessed a surge in mobile money adoption and the widespread embrace of contactless payments, fundamentally altering how millions conduct their daily transactions. Yet, these advancements – as transformative as they have been – are merely the opening act in a far more comprehensive revolution unfolding across the continent’s financial landscape.

This revolution is rooted in a suite of emerging technologies that promise to redefine the very essence of banking in Africa. From artificial intelligence to blockchain, from digital currencies to advanced cybersecurity measures, these innovations are not just enhancing existing services; they are catalysing a reimagining of financial inclusion itself.

As we delve into this new frontier, it becomes clear that the true potential of these technologies lies not in their individual capabilities, but in their collective power to address long-standing challenges unique to the African context.

Infrastructure gaps, limited access to formal identification, and the complexities of serving diverse, often remote populations are being tackled with unprecedented effectiveness.

34

Darren Franks CEO titc.io

The Rise of AI Personalising Banking for Millions At the forefront of this technological revolution stands artificial intelligence (AI), a tool that’s proving invaluable in crafting personalised banking experiences. Far from being a futuristic concept, AI is already at work in many African banks, analysing vast datasets to offer tailored financial products and services.

Consider the transformation in customer service. AIpowered chatbots, capable of communicating in multiple local languages, are breaking down long standing barriers to financial engagement. These systems go beyond simple query resolution, offering nuanced, context-aware interactions that rival human agents in their effectiveness.

But AI’s impact extends far beyond customer interfaces. It’s revolutionising credit assessment, a critical area for financial inclusion. Traditional credit scoring methods, heavily reliant on formal credit histories, have long excluded millions from accessing financial services. AI is changing this narrative.

By leveraging machine learning algorithms, financial institutions are now able to assess creditworthiness using alternative data points. Mobile phone usage patterns, utility bill payments, and even social media activity are being analysed to create comprehensive financial profiles. This approach is opening doors for individuals and small businesses previously deemed ‘unbankable’, marking a significant leap towards inclusive finance.

Blockchain

Digital Currencies

Building Trust in the Digital Age

Redefining Money for the Digital Age

government disbursements, and enhance monetary policy transmission.

The eZAR program, in particular, could serve as a model for other African nations,

The advent of Central Bank Digital

If AI is the brain of the new

demonstrating how public-private

Currencies (CBDCs) marks another

financial ecosystem, blockchain

partnerships can drive innovation in

milestone in Africa’s financial evolution.

could well be its backbone. This

the financial sector. Its success could

Nigeria’s eNaira, launched in 2021, stands

distributed ledger technology is

pave the way for similar initiatives

as a pioneering example, with several

addressing two critical challenges

across the continent, potentially leading

other African nations in various stages of

that have long plagued African

to a network of interoperable digital

CBDC development.

currencies that could transform intra-

banking: transaction security and identity verification.

Equally significant is South Africa’s

African trade and financial services.

innovative approach to digital currencies.

The immutable nature of

Simultaneously, the rise of decentralised

The eZAR program, spearheaded by the

blockchain provides a level

cryptocurrencies is introducing new

Fintech Association of South Africa,

of transparency and security

dynamics to the financial ecosystem.

represents a groundbreaking collaborative

that’s unprecedented in

While regulatory approaches vary

effort that brings together banks,

traditional banking systems. In

across the continent, the adoption

fintech companies, and regulators. This

regions where trust in financial

of cryptocurrencies for cross-border

initiative explores the potential of an

institutions has been eroded by

remittances and as a hedge against

interoperable stablecoin solution, aiming

historical instances of fraud or

currency volatility is gaining traction.

to revolutionise the financial landscape.

In countries grappling with economic

mismanagement, blockchain offers a way to rebuild confidence.

The eZAR program stands out for its ecosystem-wide approach. Unlike

instability, cryptocurrencies are emerging as an alternative store of value, challenging traditional notions of

But perhaps the most exciting

traditional CBDCs that are solely central

application of blockchain in the

bank initiatives, eZAR leverages the

African context is in the realm of

expertise and resources of the entire

digital identity. The lack of formal

As these various forms of digital

financial sector. This collaborative model

identification has historically been

currencies evolve, they are likely to

could potentially accelerate adoption and

a significant barrier to financial

coexist, each serving different needs

innovation, creating a more dynamic and

inclusion. Blockchain-based

within the financial ecosystem. CBDCs

responsive digital currency system.

may provide a stable, regulated digital

digital identity solutions are changing this dynamic, offering a secure, verifiable, and portable means of identification.

By focusing on interoperability, the eZAR initiative addresses one of the key challenges in the digital currency space. An interoperable stablecoin could

currency and financial sovereignty.

alternative to cash, while initiatives like eZAR could bridge the gap between traditional and digital finance.

Decentralised cryptocurrencies, on the other hand, might continue to serve as

Financial institutions across the

seamlessly connect different financial

continent are leveraging this

systems, from traditional banks to mobile

technology to create robust Know

money platforms, potentially reducing

Your Customer (KYC) systems.

transaction costs and increasing financial

These systems not only enhance

The landscape of digital currencies in

inclusion.

Africa is rapidly evolving, with each new

regulatory compliance but also simplify the onboarding process for new customers. The result is a win-win situation: banks can expand their customer base while individuals gain access to formal financial services, often for the first time.

These state-backed and collaborative digital currency initiatives offer a unique value proposition in the African context. By providing digital alternatives to cash that don’t necessarily require traditional bank accounts, they have the potential to bring millions into the formal

tools for cross-border transactions and as alternative investments.

initiative adding to the complexity and potential of the sector. For financial institutions, staying abreast of these developments and actively participating in collaborative efforts like the eZAR program will be crucial in shaping the future of finance on the continent.

financial system. They promise to reduce transaction costs, facilitate more efficient 35

disparities continue to impede fullscale adoption across the continent.

However, these challenges are increasingly being met with innovative solutions and collaborative efforts.

Fortifying the Digital Fortress: The Role of Cybersecurity As financial services increasingly migrate to digital platforms, robust cybersecurity measures become not just important, but essential. African financial institutions are investing heavily in advanced security technologies, recognising that trust is the cornerstone of digital finance adoption.

Biometric authentication systems are at the forefront of this security revolution. Multi-factor authentication protocols that combine physiological biometrics (like fingerprint and facial recognition) with behavioural biometrics (analysing how customers interact with their devices) are becoming the norm. These systems enhance security without compromising user experience – a crucial balance in encouraging wider adoption of digital financial services.

Moreover, AI-powered fraud detection systems are being deployed to monitor transactions in realtime, identifying and mitigating potential security breaches before they escalate. These adaptive systems learn from each interaction, continuously evolving to counter new threats in an ever-changing risk landscape.

36

Mobile Banking From Access to Empowerment While not a new technology in the African context, mobile banking continues to evolve, moving beyond basic access to offer a comprehensive suite of financial tools. The focus has shifted from merely providing a digital wallet to empowering users with sophisticated financial services.

Innovations in this space are making complex financial products more accessible and user-friendly. The integration of mobile money services with other technologies is creating powerful synergies. For instance, the convergence of mobile banking with AI-driven financial advisory services is democratising access to personalised financial planning and investment opportunities.

Furthermore, increased interoperability between mobile money platforms and traditional banking systems is blurring the lines between formal and informal financial services. This integration is creating a more seamless financial ecosystem, where users can easily move money between mobile wallets and bank accounts, expanding the utility and reach of both systems.

Charting the Course Challenges and Opportunities Ahead Despite the immense potential of these technologies, significant challenges remain. Issues of digital literacy, infrastructure gaps, and regulatory

Public-private partnerships are emerging as key drivers in addressing these issues. Initiatives like the African Development Bank’s Digital Africa are working in concert with governments and technology companies to enhance digital infrastructure and skills across the continent. These collaborations are not only tackling immediate barriers but also laying the groundwork for future innovations.

As we look to the horizon, the convergence of these transformative technologies promises to create a financial ecosystem in Africa that is more inclusive, efficient, and secure than ever before. By leveraging AI, blockchain, digital currencies, and robust cybersecurity measures, while continuing to innovate in mobile banking, the financial sector is not merely adapting to the digital age—it is actively shaping a new financial paradigm uniquely suited to the African context.

The journey towards comprehensive financial inclusion in Africa is ongoing and complex. However, with these innovative technologies at the vanguard, the future of banking on the continent is poised for unprecedented growth and inclusivity.

As financial institutions continue to harness these technologies, they are not just expanding their reach but fundamentally redefining the relationship between Africans and their financial systems, paving the way for economic empowerment and sustainable development across the continent.

In this new era of African finance, the question is no longer whether technology will transform banking, but how quickly and comprehensively this transformation will occur. For those in the financial sector, the message is clear: embrace these innovations, for they hold the key to unlocking the vast potential of the African market.

FROM CARDS TO CODES

WHY PAYMENT TOKENS ARE

THE NEW CURRENCY OF TRUST

A

s digital transactions continue to grow at a lightning speed with increasing innovative payment methods, they have also become the mainstay of the global economy, and so does the battle against fraud and data breaches proportionately. According to the Juniper report released in 2022, the global losses to online payment fraud and breaches are expected to reach $343 billion by 2027. The card payment method, once regarded as the holy grail for transactions, is fast becoming outdated as merchants now seek alternatives and invest heavily in fraud management tools. Enter payment tokens, an innovative technology designed to revolutionise and protect our financial transactions.

The Evolution of Payment Methods From being printed on cardboard, to having magnetic strips to being enabled for authorisation to having chips, later contactless capability and now biometrics, payment cards have greatly evolved since its introduction in the 1950s. On the other hand, as e-commerce space rapidly expands, cybercrimes have also become more sophisticated and the security limitations of payment cards are fast becoming evident. Payment tokens, unlike payment cards, provide an enhanced level of security rendering them useless if intercepted.

What Are Payment Tokens?

Payment tokens are a distinct set of randomly generated characters that replace sensitive card information in financial transactions. Unlike card Primary Account Numbers (PAN), which could easily be intercepted by cybercriminals and exploited, payment tokens are designed to be 38

context-specific. Unique cryptograms are also generated for each transaction and sent alongside payment tokens in payment processing ensuring distinctiveness. This implies that even if they are intercepted or compromised, they cannot be used outside of the intended purpose or with a different merchant, thus reducing the likelihood of fraud.

The Advantages of Payment Tokens The advantages of payment tokens are numerous. The likes of Apple and Google have been able to incorporate tokenization into Apple Pay and Google Wallet payments thus making them more secured. Among the numerous advantages are;

Improved Consumer Trust: Customers are more confident as their sensitive card information is replaced with tokens.

Streamlined Transactions: Tokens can streamline transactions by allowing for quicker and more efficient processing.

Types of Payment Tokens Network Token: generated by card networks such as Visa and Mastercard, and used for online payments.

Acquirer Token: generated by acquirers or payment service providers for payment purposes.

Enhanced Security: payments made with tokens are more secure because sensitive card information has been replaced by a token.

Merchant Token: generated by merchants or their payment service providers for card storage and transactions such as subscriptions or loyalty.

Reduced PCI Compliance Burden: Merchants/Retailers have little to no worry about ensuring compliance with PCIDSS as tokens are now used in place of cards.

Payment Service Provider (PSP) Token: generated by payment service providers on behalf of merchants to facilitate online payment.

Preauthorisation Token: used to preauthorise transactions i.e., reserve funds.

Device Token: used in digital wallets such as Google Pay and Apple Pay. Cryptographic Token: used for cryptocurrency transactions.

The Impact on the Financial Ecosystem The gradual migration from payment cards to payment tokens is not only a technological upgrade, but a paradigm shift helping to further enshrine how trust is established in financial transactions. With a focus on security and reducing the potential for data breaches, payment tokens are helping to build a more trustworthy and resilient financial ecosystem.

The adoption of tokens most especially Network Tokens by

retailers and merchants for financial transactions cannot be overemphasised. Not only does it reduce compliance cost and enhance security it also aligns with the ever-evolving consumer expectations for seamless and secure transactions.

The Future of Payment Tokens Payment tokens will definitely play a critical role as payment technology continues to advance.

They are also positioned to be positively impacted by new innovations such as the Token Authentication Framework (TAF) and blockchain technology.

Furthermore, the continued evolution of regulatory standards such as the Payment Card Industry Data Security Standard (PCIDSS) and the global data protection laws will become more stringent, thus positioning payment tokens to play a vital part in ensuring compliance and protecting consumer data.

As we journey through the digital age, the need for an efficient, trustworthy and secure payment system has never been greater.

Payment tokens represent a new currency of trust and security in this digital age. It is time for businesses to leverage tokenization for payments, consumers to demand it, and regulators to further support its usage. The fate of financial security largely depends on it.

Adeleke Oyero Product Owner Paydock

39

UNLOCKING DATA WITH OPEN BANKING TRANSFORMING WITH ARTIFICIAL INTELLIGENCE

F

inancial services by design are built to favour the wealthy compared

to the poor. The processes, requirements, and products are usually targeted at the already banked and mid to high-income earners. This is true especially for traditional or mainstream banking where the cost of banking is higher for the low income earners.

Naturally, this discourages many from taking advantage of banking products, for example, to grow their small business or settle unforeseen urgent needs.

Consider Amsa, a restaurant owner on a street corner in Lagos.

Amsa’s business was originally set up by her grandparents and passed on to her mother and aunt, and now it is being run by Amsa - as the only grandchild interested in running a food business. Amsa’s grandparents had a well-funded bank account in a mainstream bank in Victoria Island but the few times they attempted withdrawals, they were frustrated with complaints of signature irregularities in their cheque book. The result 40

they stuck to taking home their

purchasing habits has held back

Programming Interface) that

cash earnings, saving them in

the credit market on the African

enable seamless data exchange

inconspicuous places around the

continent, as banks - both

and collaboration between

house until it’s time to restock.

traditional and neo - require data

different platforms, a new kind

Amsa’s parents were wiser and

to make informed decisions. Open

of customer-driven banking is

set up rotating savings with

banking will equally empower third

possible.

friends and using the bank only

party providers to access and utilise

when they had to. Amsa is from

customer’s historical financial data

a different generation; she’s a

which came in handy for assessing

digital native. She has digitised

Amsa’s credit worthiness during

the business processes from

her loan application. Technology

inventories to pay roll, and even

is a key driver of innovation in all

takes orders online on ubereats

facets of life. Today’s consumers

and chowdeck. She expanded the

are highly reliant on mobile devices

menu, has a tidy turnover and

for conducting business and staying

needs some money to give the

connected with acquaintances. In

physical business a facelift. Her

banking, the stakes are even higher.

main bank won’t give her a loan for collateral reasons but a digital bank has offered her YouTuber friend a loan. She sets up an account on her phone on her way to the market, applies for a loan two hours later and gets it. Amsa is able to access a loan facility from the challenger bank because

Banking is all about storing and creating value and it thrives on

Innovating the future of banking will require the full embrace of next level technology which is artificial intelligence. Contactless payments, mobile money, digital wallets are some of the trends that have transformed the banking experience as we know it, yet the transformative potential of AI when deployed within an Open Banking system will be phenomenal. Think about some of the benefits that Open banking currently enables:

trust and risk management. The more data a financial institution has on your financial history, they can make better decisions on your risk profile. With limited data, a bank will charge higher

of Open Banking.

interest rates on a small loan, in

Open Banking unlocks data and

making borrowing expensive for

enables secure sharing among

the individual or small business

approved parties, especially

owner. It is why banking appears

financial institutions. Open

more expensive for the poor.

banking enables banks to

Traditional banks which have been

connect in a cost-effective,

around for much longer mostly

secure manner, similar to

design products with high entry

how the standardisation of

barriers, which mostly work for

USB-C has simplified device

their banked and overbanked

charging. In financial terms, this

audience. Technology however

standardisation allows banks

has enabled access to digital

and other service providers to

banks thereby driving financial

access customer data with the

inclusivity as more unbanked and

customer’s consent, fostering

underserved consumers make their

innovation and competition.

foray into the formal economy at

It puts control back in the

their own convenience - on their

hands of the customer. The

mobile phones. With the existing

lack of comprehensive data

technology used by Open Banking

on consumers’ spending and

- interoperable APIs (Application

order to hedge its risk, however

Collaboration and partnership between fintechs and other institutions sparking innovation Efficient and affordable cross border payments enhancements - reducing cost and expanding financial access Open banking data analytics provide valuable insights into consumer behaviour and financial patterns, enabling personalised financial products and services.

Microloans - banks can assess credit worthiness more accurately, expanding access to affordable financial assistance to underserved individuals and businesses, empowering financial inclusion 41

With AI in the picture, all of these benefits are further enhanced and banking becomes more personalised. For example, payments and settlements are harmonised in real time, with no intermediaries needed in a seamless banking experience. The blockchain technology enables nearly instantaneous crossborder financial transactions with all systems directly linked and talking to each other. It lowers costs and provides more value to the customer. The use of chatbots also becomes more elevated in an open banking system as they easily become e-advisors on wealth planning and investments.

The informal economy driven by

and machine learning to put data in

small businesses remains the key

the hands of the customer to allow

driver of Africa’s economy, providing

them to make their own decisions.

up to 85 percent of total employment, according to the International Labour Organisation. In Nigeria, where Sparkle operates, there are nearly 40 million micro, small and medium enterprises (MSMEs) contributing up to 48 percent of the country’s GDP. Fewer than 5 percent can access funding from financial institutions and this is one of the problems that Sparkle set out to solve - increasing access to finance for small businesses and individuals. Understanding that 37% of Nigerians are financially excluded and that traditional

In addition to delivering a personalised, value-add service, our goal is to leverage open data to cocreate solutions, driven by the use of open APIs, to build products which are then owned and accessed by everyone. Basically, more data means more innovation and trust, and more trust lowers the cost of lending. When banks can access comprehensive financial data, they can offer better services to small businesses and individuals like Amsa. This is the future.

banking has often left out women and the informal economy, Sparkle is

Take for instance at Sparkle

redefining commerce by leveraging

where Indy, our chatbot supports

technology and data to offer seamless

customers in navigating the

solutions to retailers, individuals

platform and to solve simple

and SMEs wanting to do more. By

banking requests. From the start,

removing barriers to inclusion and

AI is something we invested heavily in and we were pleased with the interface and use case. But now ChatGPT will make us up our game again, forcing us to be even more competitive. Indy needs to provide intelligent answers much faster and more reliably and we are already working on that. Indy’s

enabling access to a range of simple, secure and transparent banking products and financial services, Sparkle enables all to reach their full potential. This is particularly important for women, who make up a significant portion of the informal economy but are often underserved by traditional banks.

evolution has always been focussed

The future of Inclusive Banking

on becoming our customers’ own

begins with identifying the

personal intelligent assistant.

Her job is to help Sparklers fulfil our mantra, What do you want to do today? Simple. With data unlocked via open banking, Indy can go several steps further to provide investment advice using

underserved segment of the population and creating scalable ideas and policies that can ensure their full participation in the formal economy.

Unlocking data via open banking which leverages transformative

comprehensive financial data,

technology like AI and blockchain will

becoming an e-advisor. This

ensure that businesses in continents

way, the customer remains at the

like Africa, can access and participate

forefront of the business and is

fairly in the global financial system,

always serviced.

42

for trade and investments. At Sparkle, we are using artificial intelligence

Uzoma Dozie CEO, Sparkle

Uzoma Dozie is a leading figure in the Nigerian finance and banking landscape, with expertise spanning banking, technology, and investment.

He currently serves as the CEO and Founder of Sparkle, a mobile-first micro-finance bank and technology platform focused on empowering Nigeria’s digital natives and retail sector.

Uzoma boasts over 20 years of experience in the Nigerian banking sector, culminating in his role as Group Managing Director and Bank CEO of Diamond Bank from 2014 to 2018. There, he spearheaded the bank’s digital transformation agenda, whilst growing the customer base to 18m+. During his tenure, Uzoma successfully navigated the institution’s merger with Access Bank Plc, resulting in the new institution becoming Africa’s largest bank.

Uzoma believes technology must be leveraged to unlock economic opportunities and transform the lives of individuals and businesses, especially MSMEs and SMEs on the continent and regularly blogs on this subject.

INSTANT PAYMENTS CAN PLAY A BIGGER ROLE IN ENHANCING FINANCIAL INCLUSION IN AFRICA

BUT WE MUST TAKE DELIBERATE ACTIONS Empowering economies, particularly

Brazil. M-Pesa’s transformative impact

up to 6% to annual GDP growth in these

emerging economies through inclusive

in Kenya underscores Africa’s role as a

countries.

payments which foster broad-based

leader in creating accessible financial

participation in the formal payments-

ecosystems for all.

led economy, is one of the foundational

Financial inclusion has moved far beyond simply having a bank account

In 2016, an article by McKinsey about

— it is about easy, real-time access

Global Financial Inclusion highlighted

to services that connect and empower

a key moment in global financial

users. Instant payments are a game-

inclusion, suggesting that providing full

changer in this regard, especially in

It is no secret: Brazil’s PIX and

access to payments, credit, and savings

Africa, where mobile transactions

India’s UPI are the gold standard for

for the underbanked could unleash

allow people to send, receive, and

instant payments, setting the pace for

a welcome groundswell of economic

manage money instantly. This

financial inclusion worldwide. Not to

activity and significantly boost GDPs.

boosts economic activity and reduces

overshadow achievements in Asia and

At the time, around 2.5 billion adults –

dependency on cash. While cash is

Latin America, but African countries are

mainly in Asia, Africa, Latin America,

still widely used in both emerging

fast emerging as trailblazers in instant

and the Middle East – lacked full access

and developed economies due to its

payment inclusion. With trailblazing

to the formal economy. By enabling

universal acceptance, tangibility, and

solutions like Kenya’s M-Pesa, Africa

them to use digital mobile payments, it

independence from technology, it

is setting a powerful example in instant

was believed this could drive economic

remains crucial in areas with limited

payment inclusion, alongside pioneers

activity, particularly benefiting micro,

digital infrastructure. In Africa, cash is

in South Asia, Southeast Asia, and

small, and medium enterprises. Digital

appealing because it offers immediate

financial inclusion could potentially add

access, no transaction fees, privacy, and

pillars to sustainable economic growth: When everyone can pay, everyone can prosper.

44

populations remains an ongoing challenge.

While efforts to expand inclusive

Rufaida Hamilton Standard Bank’s Head of Payments in South Africa

instant payment systems (IIPS) are yielding positive results across several African nations, including through innovations like mobile money, the full inclusion of lower-income and rural communities remains an ongoing challenge. The progress is tentative but showing consistency in central bank mindsets across Africa. There are at least nine active instant payment systems across Africa, including Nigeria’s NIBSS Instant Pay (NIP) and Ghana’s GhIPSS Instant Pay (GIP), both of which have shown impressive growth in transaction volumes. South Africa’s Payshap (in the market since April provides a sense of control that many

2023) sits squarely poised to grow real

find reassuring.

payment inclusion but remains in its

For unbanked populations, cash is

‘basic’ or early stages of maturity.

often the only accessible way to make

We continue to watch this evolution, as

payments, allowing transactions

we work through the data that shows

without a bank account or internet. It

we still have a long way to go. The fact

is also familiar and trusted in many

that over 400 million adults on the

communities, deeply embedded in

continent are unbanked demonstrates

daily life and business.

that we need to solve key barriers like

Yet we know that cash carries risks, regulatory compliance challenges, and the mental burden of securing,

cost, accessibility, lack of compatible infrastructure, and the need for formal identification.

accessing, and moving it – both for

In conclusion, while Africa has made

individuals and businesses. Instant

significant strides in advancing digital

payments rival the ‘instantaneous’

financial inclusion, the journey is

nature of cash and can support small

far from complete. The rapid growth

businesses, boost trade, and provide

of instant payment systems is

faster access to essential services,

undoubtedly promising, but real and

particularly in remote or underserved

lasting economic empowerment hinges

areas.

on addressing the persistent barriers

However, transforming economies and growing instant payment inclusion has not been an easy and simple re-frame. Despite the advancements noted, in South Africa for instance, where the proportion of adults with bank accounts increased from 54% in 2011 to over 85% in 2021 – the quest to bring full

to access and inclusion. Solutions must be tailored to meet the unique needs of Africa’s diverse and often underserved populations. By focusing on accessible, low-cost solutions, we can unlock new opportunities, drive entrepreneurship, and create more inclusive economies.

When everyone can pay, everyone can prosper.

South Africa: About the Standard Bank Group The Standard Bank Group is the largest African bank by assets, operating in 20 African countries, 4 global financial centres and 2 offshore hubs. Headquartered in Johannesburg, South Africa, we are listed on the Johannesburg Stock Exchange, with share code SBK, and the Namibian Stock Exchange, share code SNB. Standard Bank has a 161-year history in South Africa and started building a franchise outside southern Africa in the early 1990s. Our strategic position, which enables us to connect Africa to other select emerging markets as well as pools of capital in developed markets, and our balanced portfolio of businesses, provide significant opportunities for growth.

As at 30 June 2024, Standard Bank Group had 19.5 million clients, employed nearly 51 000 people (including Liberty) and had almost 1 200 points of representation and 5 500 ATMs on the African continent.

The group’s largest shareholder is the Industrial and Commercial Bank of China (ICBC), the world’s largest bank, with a 19.4% shareholding. In addition, Standard Bank Group and ICBC share a strategic partnership that facilitates trade and deal flow between Africa, China and select emerging markets.

For further information, go to http://www.standardbank.com

economic inclusion to Africa’s diverse 45

Angola Best Digital Bank Banco Angolano de Investimentos Best Mobile Banking App Caixa Angola

Botswana Best Digital Bank First National Bank Botswana

Digital Banker Africa

Best Mobile Banking App First National Bank Botswana

Awards 2024

Best Financial Inclusion Services

I

Best Digital Bank

n an era where digital transformation is reshaping the financial landscape, the Digital Banker Africa Awards continue to recognise and celebrate those institutions that are driving innovation and delivering exceptional customer experiences. As we embark on a new year, the 2024 Digital Banker Africa Awards honour the pioneers who are redefining the future of banking.

The past year has witnessed a remarkable acceleration in digital banking adoption across the African continent. From mobile banking to AI-powered chatbots, financial institutions have embraced technology to streamline operations, enhance security, and provide seamless customer journeys. The 2024 award winners represent the pinnacle of this digital evolution, showcasing a commitment to innovation, customer centricity, and financial inclusion.

As the world becomes increasingly interconnected, the demand for

innovative solutions that address the evolving needs of consumers has never been greater. This year’s winners have demonstrated a keen understanding of these needs, leveraging cutting-edge technologies to deliver personalised, secure, and efficient banking services. From contactless payments to biometric authentication, these institutions are setting new industry standards.

The 2024 Digital Banker Africa Awards recognise the organisations that are not only adapting to the digital age but actively shaping it. By embracing emerging technologies such as artificial intelligence, blockchain, and the Internet of Things, these institutions are unlocking new opportunities and creating a more inclusive financial ecosystem.

As we honour the 2024 award winners, we celebrate their achievements and look forward to the continued growth and innovation of the African banking industry.

Provider Absa Bank Botswana

Cameroon Standard Chartered Best Mobile Banking App Bange Mobile Best Financial Inclusion Services Provider PlaNet Finance

Egypt Best Digital Bank National Bank of Egypt Best Mobile Banking App National Bank of Egypt Best Financial Inclusion Services Provider National Bank of Egypt

Gambia Best Digital Bank Ecobank Gambia Best Mobile Banking App FirstBank Gambia Best Financial Inclusion Services Provider Access Bank Gambia

46

Ghana Best Digital Bank

Best Financial Inclusion Services Provider First Bank of Nigeria

Zenith Bank Ghana

Best Digital Bank Banque Internationale Arabe de

First Atlantic Bank Best Mobile Banking App

Tunisia

Seychelles

Tunisie Best Mobile Banking App

Best Digital Bank

Banque Internationale Arabe de

Provider

Absa Bank Seychelles

Tunisie

Zenith Bank Ghana

Best Mobile Banking App

Best Financial Inclusion Services

JuiceByMCB Seychellesy

Provider

Best Financial Inclusion Services

Central Bank of Tunisia

Best Financial Inclusion Services

Kenya Best Digital Bank Stanbic Bank Kenya Best Mobile Banking App I&M Bank

Provider Absa Bank Seychelles

Sierra Leone

Uganda Best Digital Bank Standard Chartered Bank Uganda

Best Financial Inclusion Services

Best Digital Bank

Best Mobile Banking App

Provider

Ecobank Sierra Leone

United Bank for Africa Uganda

Gulf African Bank

Best Mobile Banking App

Best Financial Inclusion Services

GT Bank

Provider

Best Financial Inclusion Services

HiPipo

Morocco Best Digital Bank

Provider

Attijariwafa Bank

UBA Sierra Leone

Best Mobile Banking App

South Africa

Best Digital Bank

Best Digital Bank

Standard Chartered Bank Zambia

Nedbank

Best Mobile Banking App

Best Mobile Banking App

Atlas Mara Zambia

Capitec Bank

Best Financial Inclusion Services

CIH Mobile

Mozambique Best Digital Bank Millennium bim Best Mobile Banking App Millennium bim Smart Best Financial Inclusion Services Provider M-Pesa

Best Financial Inclusion Services Provider

Tanzania

Nigeria

NMB Bank Tanzania

Best Digital Bank

Best Mobile Banking App

Access Bank

NMB Bank Tanzania

Most Innovative Digital Bank

Best Financial Inclusion Services

Best Mobile Banking App

Provider Bank of Zambia

Nedbank

Best Digital Bank

First Bank of Nigeria

Zambia

Provider NMB Bank Tanzania

Zimbabwe Best Digital Bank AFC Commercial Bank Best Mobile Banking App First Capital Bank Zimbabwe Best Financial Inclusion Services Provider CBZ Bank

Guaranty Trust Bank

47

Connected for a

Better Future: Digital Finance in Africa In the ever-evolving landscape of African finance, digital banking has emerged as a powerful catalyst for financial inclusion. However, beneath this technological revolution lies a complex web of challenges that can hinder progress. The ability to stay connected, a seemingly simple concept, is a critical factor in ensuring that the benefits of digital finance reach even the most remote corners of the continent.

A Continent Divided: The Digital Divide Africa’s digital divide is a stark reality, characterised by disparities in access to technology and internet connectivity. While significant strides have been made in recent years, challenges such as poor infrastructure, high costs, and low digital literacy rates continue to limit the potential of digital financial services.

For instance, a lack of reliable electricity supply can severely impact the ability of individuals and businesses, particularly in rural areas, to charge their mobile devices, hindering their access to essential financial services.

This underscores the importance of addressing the underlying infrastructure challenges that underpin digital connectivity.

48

The Role of Mobile Networks

The Power of Partnerships

Mobile network operators (MNOs) have played a pivotal role in driving financial inclusion in Africa by providing essential connectivity services. Through partnerships with banks and fintech companies, MNOs have enabled millions of Africans to access a range of financial services, including mobile money, remittances, and loans.

Public-private partnerships (PPPs) have emerged as a powerful tool for accelerating financial inclusion. By combining the resources, expertise, and reach of governments, financial institutions, and technology companies, PPPs can help address the complex challenges that hinder financial access.

However, MNOs face numerous challenges, including regulatory hurdles, infrastructure costs, and the need to invest in network expansion and upgrades. To ensure the sustainability of their operations and the continued growth of digital finance, MNOs must adopt innovative strategies to overcome these obstacles.

For example, partnerships between governments and MNOs can facilitate the deployment of infrastructure, such as fiberoptic cables and cell towers, in underserved areas. Additionally, collaborations between banks and fintech companies can enable the development of innovative digital financial products and services that cater to the specific needs of African consumers.

The Importance of Financial Literacy Financial literacy is a critical factor in ensuring that individuals can effectively use digital financial services. By empowering people with the knowledge and skills they need to manage their finances, financial literacy programs can help to reduce financial exclusion and promote economic growth.

Governments, financial institutions, and civil society organisations can play a role in promoting financial literacy through education campaigns, workshops, and online resources.

By investing in financial literacy, we can help to build a more financially literate and empowered population.

Overcoming Specific Challenges To address the unique challenges faced by women and rural populations, it is crucial to tailor digital financial services to their specific needs.

of rural people by providing them with access to financial services that were previously unavailable.

However, it is essential to invest in rural infrastructure and digital literacy programs to ensure that rural populations can fully benefit from these services.

The Role of Technology Emerging technologies, such as artificial intelligence, blockchain, and the Internet of Things, have the potential to revolutionise financial inclusion in Africa. These technologies can be used to develop innovative solutions that address the unique challenges faced by African consumers. For example, AI-powered chatbots can provide financial advice and support to customers, while blockchain technology can enable secure and transparent transactions.

The Future of Financial Inclusion in Africa To achieve sustainable financial inclusion in Africa, it is essential to address the underlying factors that limit access to digital financial services. By investing in infrastructure, promoting innovation, and fostering strong public-private partnerships, we can create a future where everyone, regardless of their location or socioeconomic status, has the opportunity to participate in the digital economy.

As we move forward, it is imperative to embrace a holistic approach that considers the interconnectedness of technology, infrastructure, and human capital. By doing so, we can unlock the full potential of digital finance and drive economic growth and social development across the African continent.

Women: Women often face barriers such as limited access to education, property rights, and financial resources. Digital financial services can empower women by providing them with access to savings, loans, and insurance. However, it is crucial to address gender-specific challenges, such as digital literacy and safety concerns, to ensure that women can fully benefit from these services.

Rural Populations: Rural populations face unique challenges, including limited access to technology, poor infrastructure, and low levels of financial literacy. Mobile money services, in particular, have the potential to transform the lives 49

Transforming Nigeria The FirstBank Way F

or First Bank of Nigeria Limited

financial services provider in West

it commenced operations in 1894

(FirstBank), pioneering

Africa with active market presence in

with the use of paper-based ledgers

banking business in Nigeria

Nigeria, Ghana, Democratic Republic

to keep up with customers’ deposits &

was not borne out of a purely

of Congo (DRC), Guinea, Senegal,

withdrawals and “tally numbers” as a

commercial interest but out of an

Sierra Leone and The Gambia. As a

queue management system, FirstBank

ingrained desire to be a catalyst for

forward-thinking institution and

has always made it a duty to keep pace

the economic transformation of the

probably one of the first players to

with the dominant technology of each

country. So much so that when the

fully scope the importance of the

era of its over 130 years unbroken

doors of the Bank (then known as

Nigerian-European trading corridor,

history. For example, ahead of most

Bank of British West Africa) were first

FirstBank was the first Nigerian bank

other players in the Nigerian market,

opened in Lagos in 1894, the Bank

to establish a branch in London,

the Bank began its journey to online

instantly became a viable alternative

United Kingdom in 1982. This

real-time banking operations well

to keeping cash at home for several

London Branch was later upgraded

before its centenary anniversary

Nigerians!

to a full-fledged subsidiary in 2002

with its transformation programme

and continues to play a leading role

code-named “Century 2”. The success

The Bank has also had a pan-African

in facilitating trade and investment

of this transformation programme

outlook (as the premier financial

exchanges between African

laid the technological foundation for

institution in the West African sub-

businesses and their European

the eventual cut-over of the Bank’s

region) from inception, leading to

counterparts.

operations to digital. Currently, almost

the opening of the first international

95% of FirstBank’s customer-induced

branch of the Bank in Accra, Ghana in

Although the Bank’s operations

transactions are conducted on the

1896. Today, FirstBank is the leading

were largely manually driven when

Bank’s multiple digital channels.

50

FirstBank’s physical footprint

Through the FirstMonie Agent

In 1991, FirstBank introduced its

across the length and breadth of

Banking Network, FirstBank

first Automated Teller Machine

Nigeria remains unmatched. In

has created more than a million

(ATM) into the Nigerian market

several Nigerian rural communities,

direct and indirect employment

to give customers unrestrained

FirstBank’s offices not only serve

opportunities (especially for women

24/7 access to banking services.

as facilitator for local economic

and youth), thereby empowering

The Bank also played a leading

activities but a symbol of hope and

these Nigerians to create wealth

role in deepening card payments

economic emancipation for the rural

through a generous revenue sharing

as a viable payments option in the

dwellers.

arrangement. In addition, the Bank

Nigerian market when it pioneered

supports the FirstMonie Agents with

the instant debit card issuance

To complement the efforts

a bespoke facility product known

process to customers in the early-

of its network of physical

as AgentCredit to augment any

2010s. With over 13 million cards in circulation today, FirstBank is Nigeria’s leading payments partner and the second-highest payments card issuer in Africa.

business locations in narrowing the financial exclusion gaps, FirstBank launched the

FirstMonie Agent Banking Network in the mid-2010s to lower the cost-to-serve for

In staying true to its pioneering tradition, FirstBank introduced Nigeria’s (and indeed, West Africa’s) first-ever wholly digital bank branch equipped with digital screens, selfservice terminals, card issuance kiosks, humanoid robots as well as video banking and Artificial Intelligence (AI) capabilities to provide superior banking experience

the average customer, thereby encouraging many more financially excluded people to come into the formal banking system. Through the FirstMonie

intra-day cash flow shortages that the agents might encounter. Little wonder FirstBank’s FirstMonie Agent Banking Network is the largest bankled agent banking network on the continent!

Realising the limitations of physical footprints in driving financial inclusion, especially as it relates to achieving scale in a relatively shorter period of time, FirstBank has also

Agent Network, FirstBank is

been leveraging digital financial

improving access to financial

services and channels to widen the

services and encouraging the

financial inclusion nets. In doing this,

uptake of financial products

the Bank is mindful of the uneven

across every customer segment.

literacy levels within the financially

(DXC) in 2021. With this innovation,

By empowering over 270,000

FirstBank has adopted a two-pronged

human-less banking services are

FirstMonie Agents to open bank

now fast becoming a more prominent

accounts for customers, perform

feature of the Nigerian banking

cash-in-cash-out transactions,

landscape.

conduct intra & inter-bank transfers,

to customers when it launched the FirstBank Digital Xperience Centre

excluded demography. As such, approach in its adoption of digital financial services.

First, the Bank has created and

carry out bill payments & airtime

positioned its unique *894# USSD

As the foremost financial institution

purchase on behalf of customers,

string code to serve the financial

in Nigeria, FirstBank has been at

FirstBank improves access to

services needs of the not-so

the forefront of deepening financial

financial services and the overall

literate nor tech-savvy customer

inclusion in Nigeria. The Bank’s

quality of life, especially for people

segments. With the *894# USSD

residing in remote locations with

string code, customers can open a

limited or no formal banking

FirstBank account, perform both

facilities. With close to 50% of Agents

intra & inter-bank transfers, buy

on the FirstMonie Agent Banking

airtime, make bills payment and

Network operating from rural or

even access any of FirstBank’s

semi-rural locations, these agents

consumer loan products via the

multiple-layered approach to financial inclusion has proven to be very effective, ensuring that access to financial services gets to the lastmile regardless of the customer’s demographic status or location across Nigeria.

With its network of 732 business locations in Nigeria alone,

are emerging to become major facilitators of economic activities within their immediate localities.

FirstAdvance or FirstCredit retail assets products depending on their income profile.

51

The *894# USSD products are extremely easy to use and require very minimal mobile phone and customer

Similarly, FirstBank has launched

pioneering efforts have placed it in a

several high-end and internet-

vantage point to continue to catalyse

enabled channels (such as

the economic transformations of

FirstMobile, FirstOnline & LIT App)

Nigeria in a way no other player

to cater to the financial services

can, and it is fully committed to this

needs of the literate and tech-savvy

responsibility.

customer segment. On any of these channels, customers can perform

In recognition of this fact, FirstBank

multiple financial & non-financial

has taken concrete steps to

transactions from the comfort of

institutionalise its transformational

their homes or offices including

strides (through initiatives such as

funds transfer, bulk & scheduled

FirstBank’s *894# USSD

floating of the nation’s first Digital

transfers, bills payments, airtime

Innovation Lab in 2018) and ensure

product has proven to be a

top-up and several other account

it remains on the cutting-edge in

very effective channel for

maintenance services. The combined

curating innovative ideas & products

user base on these channels stood at

that will better reflect the needs

over 8.3 million as of September 2024

and serve the aspirations of the

and continues to grow.

banking (and yet-to-bank) public.

sophistication. Given the over 90% mobile phone penetration rate in Nigeria,

bringing the unbanked into the formal banking system with over 17.1 million subscribers as of September 2024.

This capability is closely aligned and FirstBank is intricately woven into

supportive of the Bank’s vision to be

every fabric of Nigerian society,

“Africa’s Bank of first choice”.

and as a financial services group, it remains acutely aware of this in the choices that it makes and how it serves the Nigerian market. The Bank understands how its history and

52

Olusegun Alebiosu CEO, FirstBank Group

53

BREAKING BARRIERS

CAN NEW TECH DRIVE INCLUSION IN AFRICA’S FINTECH ECONOMY?

A

frica’s financial systems are at a crossroads, undergoing a profound transformative shift fueled by technological innovation and a collective push for inclusion. Despite progress, nearly 57% of sub-Saharan Africans remain unbanked, hindered by weak identity systems, limited credit access, unreliable electricity, and poor digital connectivity. Platforms like Kenya’s M-Pesa, Ghana’s Kowri, MTN Momo, and Nigeria’s Flutterwave have demonstrated the potential of fintech to bridge these gaps, yet significant challenges persist, particularly for informal workers, smallholder farmers, and rural populations.

The path forward lies in a collaborative approach. Governments must invest in foundational infrastructure such as broadband, electricity, and biometric identity systems while implementing responsive, future-ready policies that provide clear frameworks for data privacy, cybersecurity, fintech integration, and ecosystem growth. The private sector should focus on the innovation layer, driving last-mile value-added intermediation to deliver tailored, scalable solutions that address diverse needs. Communities must co-create these interventions to ensure they are culturally relevant and practical.

By aligning robust infrastructure, innovative technology, and inclusive governance, Africa can transform its fintech landscape, fostering trust, empowering underserved populations, and driving sustainable growth. This will not only close existing gaps but also deliver a robust fintech core that assures the sustainability and capability of the fintech ecosystem to churn out wholesale and last-mile services that meet the needs of people in all parts of African societies.

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THINKING BEYOND TECH, CAN WE BE MORE WHOLESOME IN SOLUTION DESIGN AND DEVELOPMENT? For Africa’s fintech revolution to succeed, solutions must align with its people’s cultural, social, and economic realities, especially in rural communities. Informal economies dominate these areas, and traditional financial systems often fail to meet their needs.

Effective fintech solutions must resonate with local dynamics, such as agricultural cycles, communitybased savings practices, and longstanding trust networks.

One transformative opportunity lies in integrating financial services with agriculture, which underpins rural livelihoods. Tools like weather-indexed insurance can protect smallholder farmers against climate risks, offering prompt payouts based on objective weather data. This approach reduces dependency on complex claims processes and aligns financial services with the realities of rural farming. Similarly, mobilebased group savings systems can modernise communal practices like esusu (Nigeria and Ghana), chamas (Kenya), and stokvels (South Africa), preserving their essence while increasing transparency, efficiency, and reach.

Fintech must also address collective needs through innovations like shared loan products, which distribute risk among trusted networks. This model reflects traditional lending practices and empowers marginalised groups, particularly women,

to access capital. Embedding financial education within platforms using local languages and relatable storytelling can build trust and demystify digital tools, fostering confidence and adoption in communities wary of formal systems. To overcome infrastructure challenges, solutions must work in low-bandwidth or offline environments and prioritise affordability. USSDbased interfaces and affordable transaction models ensure that even the most underserved populations can participate. By integrating technology with cultural and social frameworks, fintech can deliver sustainable impact, driving equitable growth and transforming Africa’s rural economies.

LEVERAGING NEW TECHNOLOGIES FOR TRANSFORMATIVE DIGITAL FINANCIAL SERVICES Can emerging technologies provide the critical tools to address Africa’s financial inclusion challenges?

The answer lies in their ability to reshape access, trust, and education while overcoming infrastructural hurdles. Artificial intelligence (AI) offers gamechanging potential, enabling personalised financial products by analysing non-traditional data sources such as mobile usage, farming outputs, and transaction patterns. Beyond credit scoring, AI can drive tailored insurance and savings products that adapt to users’ economic realities, such as seasonal farming cycles.

Blockchain technology promises secure, transparent systems for rural savings groups and agricultural cooperatives.

Immutable records can enhance trust and accountability, while smart contracts automate processes like weather-indexed insurance payouts, ensuring timely support for smallholder farmers during climate crises. The Internet of Things (IoT) further complements these solutions, linking agricultural tools with fintech platforms to provide real-time data on weather or soil conditions, which can unlock innovative financing for farmers.

Mobile-first innovations, such as USSD-based platforms and apps with offline functionality, address connectivity gaps, allowing users with basic phones to participate in digital finance. Similarly, satellite technologies can power weatherlinked insurance systems and broadband expansion in remote areas. Digital identity systems, like Ghana’s Ghana Card, can anchor these innovations, ensuring seamless onboarding and reducing access barriers.

To succeed, these technologies must integrate financial education as a foundational element.

Gamified learning tools, local language content, and culturally relevant narratives can demystify fintech solutions, fostering trust and engagement. By leveraging emerging technologies to align with Africa’s unique needs, fintech can bridge inclusion gaps and redefine how financial systems empower underserved populations.

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CYBERSECURITY FOR BUILDING TRUST True transformation in digital financial ecosystems requires reimagining trust and security, moving beyond current standards of encryption and biometrics.

The future lies in predictive and adaptive cybersecurity frameworks powered by real-time AI and quantum-resistant technologies.

These systems can anticipate threats, evolve with emerging risks, and ensure resilience even against the most sophisticated attacks.

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A novel approach is the establishment of a Global Trust Grid—a decentralised, blockchainenabled network where fintech providers, regulators, and users collaboratively validate and share fraud intelligence. Unlike static databases, this grid would operate dynamically, using AI to analyse shared data, identify anomalies, and generate ecosystem-wide alerts in milliseconds. This transparency, combined with distributed accountability, would prevent fraud and actively deter bad actors, redefining trust in a digitalfirst financial world.

BRIDGING CREDIT GAPS IN HEALTHCARE: KOWRI’S INNOVATION IN REVENUEBASED FINANCING Kowri, a Ghana fintech platform, exemplifies emerging technologies’ transformative role in inclusive finance. Kowri delivers tailored payment solutions, microloans, and savings products to underserved communities by integrating the Ghana Card’s biometric database and utilising AI-powered data analytics. Its collaboration with

the Medical Credit Fund (MCF) leverages revenue-based financing (RBF) to address healthcare financing gaps. Through AI, Kowri tailors repayment schedules to match healthcare providers’ revenue cycles, reducing financial strain and enabling the expansion of services, acquisition of equipment, and better patient care. This approach highlights the practical application of AI and data analytics in solving systemic challenges and advancing financial inclusion across critical sectors in Ghana.

Derrydean Dadzie Founder Heritors Labs Ltd.

systems, offering security without overwhelming local resources. Similarly, AI’s ability to personalise financial services can revolutionise access, but it must operate on low-bandwidth, offline platforms to provide practical insights like credit scoring and financial education, even on basic devices.

IoT technology offers scalable

Deploying emerging technologies

at minimal cost, empowering

like blockchain, AI, and IoT

farmers with actionable insights

in Africa’s rural communities

while reducing reliance on

presents transformative

advancedinfrastructure. Fintech

opportunities but must align

platforms must complement

with the realities of poverty,

these technologies with inclusive

limited infrastructure, and low

interfaces like USSD and SMS to

digital literacy. Innovation must

reach users on feature phones

go beyond theory, integrating

and incorporate solar-powered

seamlessly into the daily lives

charging systems to ensure

of rural populations to create

accessibility.

inaccessible novelties.

Africa’s fintech evolution must break free from business-as-usual

CONTEXTUALISING TECHNOLOGY DEPLOYMENT: BRIDGING INNOVATION WITH RURAL REALITIES

tangible impact and not become

BUSINESS AS REVOLUTION, NOT BUSINESS AS USUAL

solutions for agriculture, a critical sector in rural economies. Solarpowered sensors and shared devices managed by cooperatives can deliver real-time data on weather, soil, and crop health

Solutions must be co-created with communities, respecting

Blockchain’s potential for

cultural nuances and addressing

transparency is vast, yet its

local challenges to foster trust

energy-intensive infrastructure

and adoption. By designing

remains unsuitable for areas

future-ready, human-centred

with unreliable electricity. A

innovations, fintech can

future-forward solution is hybrid

transcend barriers to drive

models that combine blockchain’s

equity, empowerment, and

immutability with lightweight,

lasting growth in Africa’s rural

energy-efficient centralised

landscapes.

(BAU) thinking. The challenges of limited infrastructure, financial exclusion, and trust deficits demand a bold shift toward business-as-revolution (BAR). This shift requires leveraging emerging technologies like AI, blockchain, and IoT not as isolated solutions but tools deeply integrated with Africa’s unique social, cultural and economic realities.

Governments must rise as architects of foundational infrastructure, enabling onnectivity, power, and secure identity systems while crafting responsive policies that drive innovation and protect trust. The private sector, in turn, must lead in creating practical, last-mile solutions that bridge these systems to the everyday lives of the people they serve. Communities must no longer be recipients but co-creators of solutions that reflect their values and lived experiences.

This is not just a technological shift; it’s a reimagining of what inclusion and equity mean in practice. It’s about designing systems that address urban realities while reflecting the pulse of rural life, respecting cultural norms, and creating opportunities where none existed before. It’s about building trust in places where trust has long been broken and ensuring that financial tools empower individuals, not just economies.

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BRIDGING THE FINANCIAL DIVIDE

HOW AI AND BLOCKCHAIN ARE DRIVING INCLUSIVE BANKING IN AFRICA

Over 350 million adults in Africa remain unbanked, restricting their access to credit, savings, and essential financial services (McKinsey & Company, 2022). Despite being home to some of the world’s fastest growing economies, the African continent faces unique challenges in extending banking services to remote and underserved communities. Limited infrastructure, high friction associated with traditional banking, and low levels of financial literacy collectively exacerbate barriers to financial inclusion.

However, the rise of fintech across Africa has been a game changer, propelling the sector into exponential growth. African fintech revenues are projected to reach $30 billion by 2025, representing an eightfold increase since 2020 (McKinsey & Company, 2022). This remarkable surge is driven by increasing smartphone penetration, decreasing data costs, and the advent of innovative financial solutions tailored to local needs. As financial technology evolves, two transformative technologies, Artificial Intelligence (AI) and Blockchain, are emerging as powerful catalysts to reshape banking access across the continent.

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The Role of Artificial Intelligence in Financial Inclusion Hyper Personalisation and Credit Scoring Artificial Intelligence has the capacity to revolutionise how financial institutions assess and serve customers. Traditional credit scoring models often exclude individuals without formal financial histories, a common scenario in Africa where informal economies thrive.

AI-driven algorithms can analyse alternative data sources—such as mobile phone usage, utility payments, and social media activity—to assess creditworthiness more accurately. This opens up lending opportunities for those previously deemed unbankable, fostering entrepreneurship and economic growth.

Language barriers and low levels of financial literacy present challenges in customer engagement. AI-powered chatbots offer multilingual support and can simplify complex financial concepts, providing 24/7 assistance.

These chatbots can guide users through transactions, help them understand product offerings, and resolve issues promptly, enhancing customer experience and trust in digital financial services.

Fraud Detection and Risk Management Financial fraud rema ins a significant concern, undermining confidence in digital banking solutions. Traditional risk management systems often rely on rule-based engines that use predefined criteria to flag suspicious activities. These systems operate on static parameters—such as transaction limits, geographic locations, or frequency caps—to detect anomalies.

While they provide a baseline level of security, they are limited in adaptability and can generate high rates of false positives, inconveniencing legitimate customers and failing to catch sophisticated fraudulent schemes.

AI systems enhance these traditional risk engines by employing machine

learning algorithms that analyse vast amounts of data in real-time. Unlike static rules, AI can identify complex patterns and evolve with emerging fraud tactics. It learns from historical data to distinguish between normal user behaviour and potential threats, improving accuracy in detection. By reducing false positives and identifying subtle anomalies that rule-based systems might miss, AI strengthens fraud prevention measures. This heightened security fosters trust and encourages more people to participate in the formal financial system, knowing their transactions are safeguarded by advanced technology.

Blockchain’s Role Secure and Transparent Transactions Blockchain technology introduces a decentralised ledger system that ensures transparency and security in financial transactions. Every transaction is recorded and immutable, reducing the risk of fraud and corruption. This level of security is crucial in building trust among users who may be sceptical of traditional banking institutions.

Digital Identities A significant barrier to financial inclusion is the lack of formal identification documents. Blockchain can facilitate the creation of secure digital identities, enabling individuals to meet Know Your Customer (KYC) requirements without traditional paperwork. This streamlines the onboarding process, allowing more people to access banking services efficiently.

Cross-border Payments and Remittances Remittances are a vital source of income for many African households. Traditional remittance services are often slow and expensive. Blockchain enables faster, cost-effective cross-border transactions by eliminating intermediaries. This not only benefits recipients but also stimulates local economies by increasing disposable income.

Bringing AI and Blockchain Together Smart Contracts The integration of AI with blockchain can enhance the functionality of smart contracts—self-executing contracts with the terms directly written into code. AI can assess contract conditions and external data inputs, triggering contract execution when predefined conditions are met. This automation reduces the need for intermediaries, lowers transaction costs, and increases efficiency.

Decentralised Finance (DeFi) DeFi leverages blockchain to create financial instruments without central authorities. When combined with AI, DeFi platforms can offer personalised financial products, such as tailored lending rates or investment strategies, to users who might otherwise lack access to such services. This democratises financial services, making them accessible to a broader population.

African Challenges Infrastructure Limitations While technology offers solutions, infrastructural challenges like limited internet connectivity and electricity remain obstacles. Investments in infrastructure are essential to support digital platforms. Solar-powered ATMs and offline mobile payment solutions are examples of innovations addressing these issues.

Regulatory Environment & Compliance A supportive regulatory framework is crucial for technological adoption.

Policymakers need to balance innovation with consumer protection.

Regulatory sandboxes, where new technologies can be tested under regulatory supervision, are effective in fostering innovation while mitigating risks.

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Philani Dlamini Engineering Manager Digital Payments

Jumo African startup Jumo uses artificial intelligence and machine learning to provide financial products and services to underbanked populations, specifically those who lack formal financial records, collateral, or credit history. By using advanced AI models, Jumo is able to generate accurate credit scores for individuals without traditional financial identities, thus facilitating access to credit and other financial services. This approach allows Jumo to address financial inclusion challenges and create tailored financial solutions for underserved communities (Jumo, 2024).

Carbon & The Rwandan Government In Nigeria, AI-driven platforms like Carbon offer instant loans via mobile apps, serving customers overlooked by traditional banks (Carbon , n.d.). In Rwanda, the government has adopted blockchain technology to modernise its land registration system (Mwanza & Wilkins, 2018). By implementing a blockchain-based registry, the government creates a secure and immutable record of land ownership that is tamper-proof and easily verifiable. This innovation not only safeguards property rights but also enables landowners to use their titles as collateral for loans, thereby stimulating economic activity and promoting financial inclusion.

Strategies for Inclusive Growth Collaborations Between Banks and Fintech Traditional banks can partner with innovating fintech companies to leverage technological innovations through Open Banking APIs. Such collaborations can extend the reach of financial services, combining the stability of established institutions with the agility of startups.

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Investment in Education and Digital

Conclusion

Literacy

Artificial Intelligence and Blockchain technologies stand at the forefront of technological innovation, offering unprecedented opportunities to reshape the financial landscape in Africa. By addressing long standing barriers to financial inclusion, these technologies can empower millions, stimulate economic growth, and foster a more equitable society. The journey towards inclusive banking is complex and requires concerted efforts from all stakeholders—governments, financial institutions, technology providers, and the communities themselves. With strategic investments, supportive policies, and collaborative initiatives, Africa can harness these transformative technologies to build a future where financial services are accessible to all.

Empowering individuals with digital skills is vital. Educational programs focusing on financial literacy and technology use can enhance adoption rates and ensure that users can safely navigate digital financial services.

Policy Governments should actively develop and implement comprehensive AI strategies to harness the transformative potential of artificial intelligence in the financial sector. By establishing clear guidelines and fostering an environment conducive to innovation, they can ensure that AI technologies are deployed ethically and effectively.

A national AI strategy would address critical issues such as data privacy, cybersecurity, and the mitigation of biases in AI systems, aligning technological advancements with societal needs and national interests.

Encouraging foreign investment in fintech and AI can also accelerate growth, provided it aligns with national priorities and security concerns. By adopting forward-looking AI policies, African governments can position their countries to take full advantage of emerging technologies, improve financial inclusion, and build more resilient economies.

References Carbon. (n.d.). Carbon – Instant loans, payments, and investments. Retrieved November 10, 2024, from https://www. getcarbon.co Mwanza, K., & Wilkins, H. (2018). African startups bet on blockchain to tackle land fraud. Reuters. Retrieved from https://www. reuters.com/article/world/african-startupsbet-on-blockchain-to-tackle-land -fraudidUSKCN1G00YJ Jumo. (2024). Intelligent Banking Technology.

Retrieved from https://jumo.world McKinsey & Company. (2022). Fintech in Africa: The End of the Beginning. McKinsey Global Institute.

Digital

Innovation

The catalyst to inclusive banking Collaboration: The Force Behind Effective Digital Innovation As an optimistic and resilient professional, I am deeply committed to advancing technical, data, and digital literacy on a global scale. Motivated by a desire to collaborate with likeminded individuals, I strive to create an environment where opportunities are accessible to those seeking positive change, whether in their personal lives, their communities, or globally.

At the 27th annual Africa Tech Festival (ATF) held in Cape Town, South Africa, in November 2024, Google unveiled 10 dynamic startups selected for its Startups Accelerator Africa: Black Founders Program. This 10-week, equity-free accelerator supports Series A startups focused on developing Africa-centric solutions powered by artificial intelligence (AI). In addition to receiving $350,000 in Google Cloud credits, these companies will gain access to advanced business tools, mentorship, and resources designed to foster innovation and drive technological advancement across the continent. Initiatives like these 62

are critical in advancing the global digital agenda, which is increasingly recognised as a powerful catalyst for achieving financial inclusion.

Amid these developments, the rapid adoption of advanced technologies has become a global cornerstone for modern living, driving the rise of smart cities, intelligent industries, and, notably, digital banking. These innovations are reshaping how businesses and individuals engage with financial products and services, resulting in increased exposure, greater efficiency, and more effective service delivery. Over the past decade, there has been a significant reduction in the number of financially excluded individuals and businesses worldwide.

According to the South African National Treasury’s 2023 Inclusive Financial Sector Report, the global unbanked population has decreased from approximately 2.5 billion to 1.7 billion.

The report further highlights that many previously excluded customers have transitioned from cash-based transactions to formal financial services, such as digital payments, savings, investments, and credit. This shift has been largely driven by the widespread adoption of mobile phones and other digital technologies.

Digital Financial Inclusion: Banking for All These advancements represent significant progress, as financial inclusion enables individuals and businesses to access formal financial services, thereby enhancing financial security and promoting sustainability.

Financial inclusion is a key driver of improved quality of life, fostering economic growth, supporting the success of small to medium-sized enterprises, while also reducing poverty and inequality. At its core, financial inclusion advocates for the availability of mutually beneficial and sustainable financial products and services tailored to the needs of target populations. It also emphasises the importance of creating an enabling environment that encourages competition, innovation, product development, and service delivery, while promoting greater diversity among regulated financial service providers.

The World Bank Group, comprising five global organisations, defines digital financial inclusion as the use of cost-effective digital tools to reach historically excluded and underserved populations with a range of formal financial services suited to their needs.

This perspective is echoed by the South African Financial Sector Conduct Authority (FSCA), which notes that technology enables consumers to access customercentric, secure, user-friendly, and cost-effective financial products and services. In its Digital Banking Research paper, the FSCA further states that digital financial services can be accessed from anywhere, meaning customers are no longer restricted by physical location and can choose financial institutions that best meet their needs.

Digitally Inclusive Financial Best Practices Digitally inclusive practices are essential in bridging the digital divide by promoting equitable access to financial tools such as mobile banking, online payments, and digital credit, in a sustainable and scalable manner. The digitisation of financial services is typically approached with a clear agenda and well-defined key performance indicators (KPIs).

Agility is vital in the rollout of these products and services. It is often most effective to start on a smaller scale and expand as customers recognise the value, which can directly correlate with profitability and overall financial performance. Below are three essential capabilities that, when deployed effectively, have shown significant value within a short period of time.

Digitising the Overall Customer Experience Digitising the overall customer experience involves transforming the entire customer journey to enhance satisfaction and engagement. This process is typically guided by core business activities such as customer onboarding, ongoing reviews, and exit processes. By utilising digital tools and technologies, businesses can streamline these interactions, making them more efficient, seamless, and customer-centric.

Digitising Transactional Platforms Digitising transactional platforms enables customers to make and receive payments, transfer funds, and store value electronically. This is achieved using devices that transmit and receive transaction data, while connecting to a bank or a licensed non-bank entity authorised to store electronic value. This transformation enhances convenience, security, and accessibility for customers in managing their financial transactions.

Key Takeaways The digital transformation of financial services is revolutionising access to formal financial products, significantly advancing financial inclusion across the globe. This article highlights the critical role of collaboration in driving innovation, using Google’s Startups Accelerator Africa: Black Founders Program as a case study of fostering Africa-centric solutions powered by artificial intelligence.

Over the past decade, the adoption of digital technologies, particularly mobile devices, has reduced the global unbanked population, enabling millions to transition from cash-based transactions to formal services such as digital payments, savings, and credit. Financial inclusion not only fosters economic growth and SME success but also reduces poverty and inequality, serving as a catalyst for sustainable development.

Digitisation efforts, including core operations, customer experience, and transactional platforms, are foundational to this transformation. Agile approaches that begin on a small scale and expand as customer value is realised have proven effective in linking innovation to profitability. Additionally, both global organisations like the World Bank Group and local regulators such as South Africa’s FSCA emphasise the importance of accessible, secure, and customer-centric financial solutions in bridging the digital divide.

This article underscores the need for businesses to prioritise digitally inclusive practices, ensuring that financial tools are sustainable, scalable, and tailored to the needs of underserved populations, driving long-term economic and social benefits.

Dr Sizwe Gwala Head of Data Governance and Management Absa Group

Digitising Core Operations and Technology Digitising core operations and technology should take priority over other initiatives, as they form the backbone of any business. The optimal approach involves identifying business processes with high potential for optimisation and leveraging robotic process automation (RPA) to streamline these processes. This improves speed, quality, and capacity while driving operational efficiency. Once these foundational improvements are in place, the focus can shift to initiatives that add value to customers.

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The Role of

Blockchain Technology in

Building Financial Inclusion

I was raised by two generations of farmers. My late grandmother was a coffee farmer, while my mother farmed everyday crops and poultry. Growing up in a small farming community, we embraced the bartering system where goods and services were exchanged without money. It wasn’t just about trading goods; it was about coming together as a community. During planting time, villagers would unite to help families that lacked capacity, such as female-led households, by providing manpower and sharing farming tools. This ensured that everyone was economically included, value stayed within the community and support was available when and where it was needed most.

Payments were instant, if you exchanged a basket of vegetables, you received your chicken in exchange immediately, not in 5 to 10 days. This system built and reinforced trust and strengthened relationships. However: as I grew older, I saw the limitations when trying to scale this model beyond the village community towards the big

64

city or international markets. Today, through eFama, we’re harnessing blockchain technology to take the essence of that bartering system: trust, direct exchange, fast payment methods, financial inclusion and deepening community building. Enabling trust and trade on a larger scale. We connect farmers directly to buyers and ensure swift transparent payments, building an inclusive agricultural supply chain that empowers farmers across Africa.

Quite the opposite to the typical status quo: where farmers are often left at the margins desperate for market access and financial inclusion.

Dr. Laurie Dippenaar, one of the founding fathers who shaped South Africa’s globally revered banking system, reflecting on his highly successful 40-year career in financial services, said his keys to success could be summed up in four words: ‘traditional values, innovative ideas.’

At the intersection of traditional values and innovative technology lies the potential for true financial inclusion.

Blockchain, much like the age-old

bartering system, is revolutionising how we think about trust, direct exchange, swift, transparent payments, and community-based peer to peer economies. As an emerging best practice: blockchain technology is evolving beyond hype as it goes mainstream adoption. Decentralised ledger technologies, a more sectorwide way of referencing blockchain, is being scaled to create transparent, efficient, and inclusive financial ecosystems that democratise market access and empower underserved communities.

In pondering the role of blockchain in today’s economy, borrowing from my lived-experiences and front-row seat across the decentralised marketplace: I couldn’t help but notice blockchain’s parallels to the bartering system — and how these traditional principles, i.e. the need for trust at scale, are driving innovation to reshape financial services and extend economic opportunities across regions.

Synergy with Traditional Banking

Shadrack Kubyane Co-Founder

At this tipping point as the Blockchain technology gears for adoption at scale the technology ought to not seek to replace traditional banking; rather to enhance it. Much like how bartering relied on trust and community, blockchain uses a decentralisation to build trust without the need for a central authority. This integrative approach creates a synergy where blockchain-based payment networks facilitate cross-border transactions that are faster, more secure, and costeffective. Cross-border in this context is dual-form: established country borders and the nexus across the informal and formal economies. The agricultural landscape is shaped by this particular reality: growers exist across smallholder farming, semi-commercial and commercial size farmers.

Agility and CostEffectiveness: Transforming Remittances Slightly away from my daily focus, but an adjacent reality: for many Africans working abroad, sending money back home is a lifeline for their families.

However, traditional remittance services remain costly and timeconsuming. Blockchain technology changes this by offering near-instant transfers at a fraction of the cost, enhancing accessibility for millions.

Consider Elizabeth Rossiello’s bold vision when she founded BitPesa [now Aza Finance] , a blockchainbased remittance service operating in Africa. By using Bitcoin as a medium, Aza Finance, across 115 countries, converts international payments into local currencies within minutes. This approach not only saves time but also dramatically reduces fees, charging 1-3% per transaction compared to the 5-10% typically levied by traditional remittance services.

eFama App & Coronet Blockchain

Enhanced Transparency and Security: Building Trust in Transactions Back home: in my farming community, to each participating villager, trust was a vital component of bartering. We needed to be certain that the livestock or produce exchanged was of good quality and that promises would be kept. Blockchain replicates and enhances this trust in a digital format through its transparent and immutable ledger, at scale.

Blockchain’s tamper-proof nature ensures that all transactions are visible, verifiable, and permanent.

This transparency has had a profound impact in reducing fraud and corruption, particularly in developing economies where trust in financial systems remains low across certain societal tiers. For example, back in 2018 HSBC pioneered the use of blockchain in trade finance across a country to country agricultural supply chain. In the process, by reducing the 10 day process to an impressive 24 hours: they demonstrated how blockchain successfully replaced lengthy, paperbased processes with digital, verifiable records, reducing the risk of fraud and ensuring that all parties have confidence in the transaction.

Financial Inclusion for the Unbanked: A New Digital Frontier As the tipping point unfolds towards blockchain’s wider adoption, this is worth considering: according to the World Bank, over 1.7 billion people globally remain unbanked, with a significant percentage of these individuals residing in Africa. The lack of access to formal financial services often leaves these populations excluded from economic opportunities. However, blockchain, in combination with mobile money services, is changing this reality.

Mobile payment services like M-Pesa have boldly demonstrated the potential of mobile payments in providing basic financial services.

Mpesa’s big ticket wins however are originally centred across a Business to Consumer [B2C] or Consumer to Consumer [C2C] dimension.

Blockchain: adds a hyper business to business [B2B] dimension to mobile payments, by further enabling not only simple transactions but also access to loans, insurance, and savings accounts, all without the need for a traditional bank account.

By creating a digital identity and transaction history, individuals can access a broader range of financial products, often at lower costs than what traditional banks can offer.

Blockchain’s decentralised nature allows people in remote areas to participate in the financial system with just a mobile phone. Through blockchain, the unbanked can now send and receive money, access credit, and build wealth, thus bridging the gap between them and the global economy.

Most of you would have by now become aware of my former neighbour, Elon Musk’s impressive feat via SpaceX’s “chopsticks” mechanism introduced by SpaceX with their Starship launch system.

Which has revolutionised space technology by enabling a reusable launch and catch system, potentially making launches more efficient and cost-effective.

Blockchain’s “chop-sticks” moment in Agriculture: yes, that’s what my team and I decided to label it as, during a recent ideation window, zooming in one of our priority focus areas, as we fixed our lenses on eFama’s vision 2030 trajectory.

Beyond our present thousands of farmers. What happens when blockchain simplifies trust, trade and inclusion across the formal and informal economies that make up farming, shaping Africa’s food security, or widening the glaring food insecurity gaps?

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FORGING AHEAD OF THE FINTECHS The rise of fintechs at the expense of the banking establishment has been well documented. In bypassing the need for traditional banking infrastructure, fintechs have disrupted the market and

they must forge partnerships that exploit their considerable advantages now. If they do, the future is bright.

Africa’s banks have the potential to grow and future-proof their business while also enabling much needed financial inclusion across the continent.

This paper considers the challenges

THE TIME IS NOW FOR BANKS IN AFRICA The fintech revolution is global, but in Africa its effects are most starkly visible.

and opportunities facing Africa’s

The mobile money boom spearheaded

banks in the fight back against the

by the birth of M-PESA in Kenya,

rise of the fintech. It explores their

followed by similar mobile money

key advantages, the benefits to

operations in Tanzania and Uganda,

banks.

be gained from partnerships, and

swiftly brought tangible benefits to

highlights four exciting areas for

huge portions of the population. By

It seemed as if the banks would

potential business growth.

solving the distribution problem and

empowered underserved segments of the population with financial capabilities, but also created extensive areas of competition with

simply sit back and cede large areas

lowering the cost to serve, Mobile

of business to the challengers,

Network Operators (MNOs) left the

but recently, they have begun to

banks standing, tied to their branch

recognise that while they may

networks.

be down, they are not out. Novel partnerships can enable them to reach new customers and serve them efficiently through the adoption of innovative technology.

Yet if banks are to thrive rather than simply survive in this intensely competitive environment,

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Africa’s banks have the potential to grow and future-proof their business while also enabling much needed financial inclusion.

According to data from the World Bank, in 2022 there were 12 economies in which adults with just a mobile money account outnumbered those who held an account with a bank or regulated financial institution. All 12 of those economies were in Sub-Saharan Africa1.

Consumers now use their mobile money accounts not just to make and receive payments, but to save and borrow, encroaching further into traditional banking territory. In what can be seen as a blunt warning to other banks, KCB (one of the largest banks in East Africa) recently announced that their loan book halved over the last 12 months, with the loss of 1.1 million customers. At the same time, MNO Safaricom revealed

Four core advantages & how banks can play them The banking establishment’s wealth and long experience gives them unique strengths & capabilities to leverage and build on.

that financial services from mobile

Banks are trusted, giving them a

money, including loans and deposits,

license to offer a broader range

now make up 33% of its revenue,

of profitable services beyond

approaching $1bn. MNOs and fintechs

payments, including savings

are actively eating away at the banks’

accounts, deposits, investing,

bread-and-butter business.

lending, and insurance.

For those consumers who are

Regulation creates a costly

financially included, Open Banking,

barrier to entry for fintech and

and real-time payments also have

MNO competitors, restricting

the potential to significantly impact

their growth and ability to

consumer habits. Empowered by

profitably service broader market

greater control of their finances,

segments.

customers are able to pick andchoose providers and mix-and match services thanks to greater access to data. Now more than ever, customer loyalty needs to be earned, not taken for granted.

Banks are experienced at managing complex political, economic, and regulatory environments, giving them a competitive edge over their lessexperienced challengers.

Yet opportunity does exist for banks who act now. They must respond to the MNOs by blending the physical with the digital to reach these same consumers through digital channels.

With Africa’s young, fast-growing population presenting a still largely untapped market, banks have the potential to fight back and make considerable gains if they leverage their core advantages without delay.

1. Data From the Global Findex 2021: The Impact of Mobile Money in Sub-

Banks are experienced at managing complex political, economic, and regulatory environments, giving them a competitive edge over their less-experienced challengers.

2

Trust & recognition

There is a tremendous opportunity for incumbent banks to service the latent demand for smarter payment options and wider financial services.With a well-developed range of existing products ready to go, they have the chance to serve new customers in depth and at speed.

Moreover, while the need to adapt to a digital-first strategy is clear, many customers still value access to physical branches which banks can provide. This gives banks the opportunity to flex and develop in a way that suits them and their customers. For example, in South Africa, Capitec is committed to bank branches and serving customers face-to-face, while TymeBank has no branches at all, but works through a retail partner to enable physical

1

Regulatory expertise

Regulatory requirements, often seen as an onerous burden, are in fact a key advantage that defines a bank’s USP: Banks are trusted, giving them a license to offer a broader range of profitable services beyond payments, including savings accounts, deposits, investing, lending, and insurance.

client interactions.

Whichever option banks choose, their access to extensive customer data can be used to personalise services, improve customer experience, and develop new products. This gives them the potential to extract realtime insights to enable smarter, timely, and more informed decisions. This is a significant advantage in an industry increasingly driven by analytics and AI, and has the potential to

Saharan Africa: https://www.worldbank.

Regulation creates a costly barrier

dramatically enhance operational

org/en/publication/globalfindex/brief/

to entry for fintech and MNO

efficiency and accelerate time-to-

data-from-the-global-findex-2021-

competitors, restricting their growth

market.

the-impact-of-mobile-money-in-sub-

and ability to profitably service

saharan-africa

broader market segments.

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3

Distribution & data

Despite the long-lasting shock waves from the global financial crisis, banks are still highly regarded as robust institutions, and trusted by consumers. In many markets, they are also underpinned by financial

a traditional conservative approach to a data-driven strategy, and achieve speed to market. This isn’t something they can do single-handed.

system insurance from central banks,

Many international titans of the

adding a further degree of stability

business have opted to buy fintechs,

and confidence.

making investments that have been

4

Capital and resources

Compared to the less mature, often capital-poor fintechs, African banks have considerable financial strength, with strong balance sheets and resources that allow for ongoing investment, empowering them to leverage their operational scale to exploit these new opportunities.

FINDING THE RIGHT PARTNER IS KEY So how can banks harness the full potential of their strengths? They need to find ways to work around the limitations of aging legacy infrastructure, move from

The very best partnerships will do more than answer an isolated pain point. They will give a bank: •

need from day one, with the chance to nurture an ongoing and mutually beneficial relationship.

•

of innovation across the

gaps, and strategic in controlling

business, with deep data

competitors. Though Visa’s attempt

insight to help guide smart

to buy Plaid fell foul of the regulators,

decisions for the future.

Mastercard’s purchase of Vocalink alternate digital payments beyond the traditional four-party card model.

Meanwhile, Bank of America has invested in Zelle, Amex in Kabbage, and BBVA are now the owners of Simple.

Full, flexible payment capabilities, speed and scale

both tactical in plugging capability

has allowed it to expand into

The agility and resources they

•

A combination of cutting-edge financial technology with deep industry knowledge, allowing the bank to bring their breadth and depth of service into play across every part of their customers’ finances.

For most banks, however, partnerships are essential. Actively

Most vital of all, the right partner

collaborating with fintechs is a

will have the ability to easily

simpler, faster, more cost-effective

integrate with existing technology

solution and the model that African

and deploy anywhere, allowing

banks are best placed to pursue. If

banks not just to fight back against

they are to enrich their proposition or

the fintechs, but partner with

reach out to serve a broader base of

complementary fintechs to gain new

customers, finding the right partner

ground and liberate their business to

is key.

grow in both profit and scale.

FOUR STEPS TO SEIZING A BRIGHTER FUTURE

The very best partnerships will do more than answer an isolated pain point.

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By harnessing the power of partnership and bringing their key advantages into play, Africa’s banks have the prospect of exciting times ahead. Here are four steps they can take to extend their territory and future-proof their market share:

1

Expand into underserved markets

Fintechs have successfully used their low cost to serve, built on modern technology infrastructure, to successfully reach unserved and underserved market segments with innovative products and services.

Banks who can leverage fintech partnerships can offer affordable and convenient services to these same market segments, expand their customer base and fulfil financial inclusion goals. Crucially, they also have the opportunity to cross-sell their traditional banking services, particularly in more regulated areas such as lending, deposits, insurance, and wealth management, thereby increasing profits and lowering costs.

2

Improve operational efficiency

With the right partner to provide data analytics, RPA and AI to enhance their processes, banks can reduce costs and improve efficiency, resulting in faster, cheaper, higher quality services to customers. This frees the banks to focus on their core

Providing this agile design approach

banks can enable the services that

is built on the right framework, banks

customers need, using cutting-edge

can release small enhancements,

financial technology and deep industry

gather user feedback, and iterate

knowledge to build new digital

accordingly, allowing them to stay

payments propositions that enhance

up-to-date with technological

consumer experiences.

advancements without falling behind the curve.

4

Leverage the valueadding power of data

Banks already have unique insights into consumer behaviours. Now they need to exploit them to their advantage. Working with a partner with expertise in AI and data analytics will help banks better understand their customers, personalise the customer experience, and improve predictive modelling for better operational efficiency and improved product opportunity.

By embracing the right partnerships, banks can enable the services that customers need, using cutting-edge financial technology.

you do best, and outsource the rest”, best, and partner for the rest”.

3

Embrace incremental innovation

Banks the world over have an unhappy history of implementing ambitious A to Z tech revamps at a tortuously slow pace and

CONCLUSION Africa’s banking establishment has a very real window of opportunity before them: the chance to modernise their business model, freeing them to seize more opportunities, embrace innovation, add value, and drive financial

great expense. In today’s fast-

inclusion across the continent.

evolving world of commerce, banks

Fintechs will continue to challenge

should rather focus on rolling out incremental innovation across products, services, and efficiencies by harnessing fintech capabilities that complement their own core competencies and capabilities.

the innovation they need to thrive in today’s highly-competitive market, freeing them to seize more opportunities for their business and their customers.

When you partner with enza, you benefit from our rapid seamless integration with fintech services.

We take care of the complexity of integrating new technologies with your existing systems, allowing you to focus on building superior customer experiences and driving growth.

Talk to us today about how we can transform your payments capabilities to compete and win in the fast-

capabilities – rather than “do what think in terms of “do what you do

At enza, we empower banks with

the banking monopoly. But this

evolving world of digital commerce.

Hamish Houston Group Chief Operating Officer enza

enza empowers Africa’s financial institutions with the innovation needed to compete, liberating the world of payments for more inclusive, opportunity-led commerce.

Founded in 2023, enza is headquartered in Abu Dhabi, with regional offices in Egypt, South Africa, and Nigeria, and is led by the most successful and experienced team in African payments. enza’s innovative payment solutions deliver the flexibility and agility needed to increase competitiveness, capitalise on new markets, and develop new revenue streams through better serving consumer and business customers across Africa.

of the banks’ ability to continue

enza is liberating the world of payments for a more prosperous, financiallyinclusive Africa, are you ready to join us?

growing their customer base,

www.enzagroup.global

doesn’t have to be at the expense

revenues and market relevance. By embracing the right partnerships,

sales@enzagroup.global 69