The digital transformation revolution is sweeping the African continent, with many firms adopting cutting-edge digital technology in the hopes of scaling new heights. On the other hand, these businesses confront the problem of overcoming the adoption hurdles to digital technologies.
One of the bright spots for Africa’s progress in the last fifteen years has been the growth of digital technology, which has been fuelled mainly by the mobile revolution and related advancements. The financial industry is likewise witnessing significant changes. Payments, loans, insurance, and wealth management are all being reshaped by digital technologies, a process that the COVID-19 pandemic has expedited.
The state of digital transformation in Africa’s banking industry
For African banks, digital banking transformation is no longer a preferable choice; it has become a necessity if they are to survive. There are far too many non-banking sector players in the market who fully utilize the technology available to continue doing business as usual.
Most companies have acknowledged the revolution and are adjusting how customers access their services, while others automate their back-office activities. Such reforms should save expenses and increase the number of people who have access to banking services, which will benefit everyone.
All African financial institutions clearly recognize the relevance of digital banking in their expansion plan. They confront increased disruption from emerging technologies and are under pressure to adapt and innovate to meet the changing demands of modern consumers. Despite the fact that many financial institutions have made considerable investments in providing a superior digital experience, the digital banking environment remains untapped. They need to reimagine the idea of “digital banking” now more than ever, with the use of data, analytics, technology, innovation, and human resources to revolutionize the customer experience.
Africa’s need for digital transformation
According to international experts McKinsey, the number of Africans having bank accounts would rise from over 300 million in 2017 to 450 million by 2022, with revenues jumping from $86 million to $129 million during that time.
The growing adoption of digital services is anticipated to be the driving force behind this. Most African banks now provide their customers with online banking and mobile banking apps that allow them to check their balances, transfer money, and pay bills. Mobile wallets and digital financing are also growing increasingly popular.
In order to meet customer demand and scale their business, the banking sector must discover strategies to drive digital transformation in their companies. The African banking sector will gain from digital transformation because it creates more job opportunities, improves firm performance, and ultimately boosts the organization’s bottom line.
Africa’s banks must put digital transformation at the center of their operations. Many companies have already begun to do so. Banks must embrace a digital-first mindset to stay relevant, service their customers, and reach underserved and unbanked distant African communities. Only 12% of African banks consider themselves to be digital-first banks at the moment, but another 48% say they are on their way to becoming one.
In the long run, those banks who do not do so will face competition from their more pro-digital competitors and other fintech providers and digital-first banks. Hence developing a clear and effective digital transformation strategy is the key catalyst in driving innovation & business efficiency in Africa.
Learn more at Digital Transformation Summit
Event Organized by Exito Media Concepts