Backbase and African Banker launch landmark report on the future of digital banking in Africa that highlighted digital literacy gaps as the major challenge followed by cybersecurity concerns and limited access to the internet
The biggest challenges remain digital literacy gaps (77%), cybersecurity concerns (55%), and limited internet access (52%), though all are expected to decrease with rising digital adoption and investment. Heidi Custers, Global Strategy & Transformation Director at Backbase said: “This report shows just how far African banks have come in rethinking the customer experience. What stands out is the shift from one-size-fits-all products to more thoughtful, data-driven services. It’s not about chasing trends—it’s about making digital banking work for real people, at scale.”
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Backbase, among the global leaders in engagement banking, collaborated with the African Banker magazine to inaugural launch of the report – Africa Digital Banking Experience Series 2025. The report is said a timely publication that explores the transformation of banking across the continent in an age of hyper-personalization, AI integration, and financial inclusion.
The report “Retail banking: Competing for the modern African customer” is based on an exclusive survey of over 200 senior banking executives across 40 African countries. It provides a detailed, data-driven analysis of how African banks are shifting from traditional transactional models to AI-powered platforms that prioritize tailored customer journeys and operational efficiency.
Key findings from the report include:
(a) Retail banking remains the main entry point for digital transformation, with 39% of banks prioritizing it, followed by SMEs and corporate banking.
(b) AI is becoming central to reaching the unbanked, with banks using alternative data and machine learning to de-risk credit and deliver scalable services beyond physical branches.
(c) Operational efficiency, financial inclusion, and market share expansion are the top three digital priorities for African banks.
Banks are increasingly adopting omnichannel strategies, integrating online, mobile, and physical services to deliver seamless user experiences.
The report also features an in-depth case study of Mauritius Commercial Bank (MCB), showcasing how the Backbase Engagement Banking Platform enabled MCB to rapidly scale and launch new digital services, from SME banking to retail wealth apps, with high satisfaction scores and accelerated feature rollout.
• Thinking of Investing in Ethiopia or Other African Countries?
- Through our network of investigative and business journalists in Ethiopia and other African countries, we provide verified, boots-on-the-ground insights to help investors make confident decisions.
- Trusted by international investors and NGOs for our on-the-ground intelligence.
