African Banker in Collaboration with Backbase Release Pioneering Document on the Evolution of Digital Banking Across Africa
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In the rapidly evolving digital landscape of Africa, cybersecurity concerns, limited internet access, and digital literacy gaps are challenging 55%, 52%, and 77% of African banks respectively. However, these challenges are expected to decrease with rising digital adoption and investment, according to the Africa Digital Banking Experience Series 2025 report by global leader in Engagement Banking, Backbase.
The report, based on an exclusive survey of over 200 senior banking executives across 40 African countries, highlights the continent's shift towards AI-driven, customer-focused financial services that enhance inclusion. The report features an in-depth case study of Mauritius Commercial Bank (MCB), which has scaled and launched new digital services using the Backbase Engagement Banking Platform.
The top digital priorities for African banks, as outlined in the report, are:
- Improving operational efficiency: Banks are focusing on streamlining their processes and reducing costs to improve their overall efficiency.
- Expanding financial inclusion: With the help of AI-powered solutions that use alternative data and machine learning, banks aim to reach previously underserved populations and provide credit more efficiently.
- Expanding market share: In a competitive digital landscape, banks are prioritising innovation to compete effectively and grow their customer base.
Retail banking remains the main focus of digital transformation, with banks prioritising tailored customer journeys powered by AI, along with seamless omnichannel strategies integrating online, mobile, and physical channels to improve user experience and engagement. The use of AI is central not only for personalization but also for scalable service delivery beyond traditional branches.
The presence of digital-first banks and fintech competitors is pushing traditional banks towards innovation and cost-effective digital solutions. Banks are shifting from traditional transactional models to AI-powered platforms, adopting alternative data sources and machine learning to provide credit to previously underserved populations.
The first report in the series, titled "Retail banking: Competing for the modern African customer," explores the transformation of banking across Africa. The report emphasises that banks are increasingly adopting omnichannel strategies, integrating online, mobile, and physical services to deliver seamless user experiences. AI is becoming central to reaching the unbanked, with banks using alternative data and machine learning to de-risk credit and deliver scalable services.
MCB's digital services have received high satisfaction scores and have been rolled out quickly. The bank's success serves as a testament to the potential of digital transformation in African banking.
Heidi Custers, Global Strategy & Transformation Director at Backbase, emphasises the shift from one-size-fits-all products to more thoughtful, data-driven services in African banks. The Africa Digital Banking Experience 2025 underscores the continent's shift towards a modern, inclusive, and efficient banking ecosystem, with AI and personalization as key enablers.
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- To stay competitive in the digital African market, banks are realizing the importance of investing in digital services, such as those provided by ffnews.com, that offer solutions in finance, business, and technology.
- For instance, the success of Mauritius Commercial Bank's digital services, detailed in a case study by Backbase, illustrates how AI-driven finance initiatives can expand business opportunities and promote technology advancements.
