As of 2023, 48% of Africa’s population were active users of banking services—a figure that continues to grow at a fast rate. However, this shift is not only about expansion; Africa is emerging as a global trendsetter in digital banking, leading the way with innovative, consumer-centric solutions tailored for its mobile-first population. With mobile money adoption growing—33% of adults in the sub-Saharan Africa region owned a mobile money account as of 2021, and registered mobile money accounts across the continent reached 856 million by 2023. It is clear that a user of remote payment or banking services is now a potential digital banking customer.
Digitalization has shifted power from traditional banks to consumers, shaping financial services to meet the needs of these consumers. The empowered consumer now demands seamless access to banking services anytime, anywhere and across multiple digital channels. They further require a variety of financial products tailored to their needs.
Today’s consumer is more financially aware, understanding product implications, usage, and the recourse mechanisms available to them. They are actively comparing alternatives to make the best financial decisions based on their needs and circumstances.
Recognising this shift, governments and regulators across Africa are working on policies that drive digitalization, not only to enhance transparency and improve monetary policy transmission but also because of the economic benefits and consumer empowerment that come with it. As digital banking continues to evolve, the question is no longer whether consumers will embrace it, but rather how financial service providers will adapt to meet growing consumer demand.
II. The Rise of the Empowered Consumer in Africa
As consumers become more knowledgeable about financial products and services, they demand more transparency, affordability and convenience, compelling financial institutions to innovate.
One of the most significant enablers of this shift is mobile penetration, which has revolutionized financial access across the continent. With millions of Africans using mobile phones as their primary banking tool, digital wallets and USSD-based transactions have become the norm, allowing even those in remote areas to benefit from financial services. The rise of FinTechs has also introduced faster, more cost-effective alternatives to traditional banking. Fintech startups have disrupted the industry by offering digital solutions tailored to consumer needs. An example is OPay, a Nigerian FinTech company that offers its customers a platform for payments, transfers, savings, loans and POS services[5].
At the same time, regulatory frameworks are evolving to support consumer empowerment, with policymakers implementing measures to promote open banking, data protection, and financial transparency. These initiatives are designed not only to safeguard consumers but also to foster innovation.
III. The Adaptation of Digital Banking to Meet Consumer Demands
The shift from traditional branch-based (brick and mortar) banking to digital banking has placed the consumer at the centre of financial service delivery, ensuring that banking is no longer confined to physical locations or limited to standard working hours.
A key driver of this transformation is Artificial Intelligence (AI), which operates behind the scenes to simplify user interactions while managing complex financial processes. AI-driven credit assessment tools now allow consumers, especially those without formal credit histories to access loans based on alternative data, such as mobile phone usage, transaction patterns, and behavioral insights. This alternative data is allowing Banks and Fintechs to established trusted credentials to assess and price risks of this new type of consumers. This has significantly expanded financial inclusion, providing access to credit for those who were previously excluded.
Customer service is further enhanced through the use of chatbots and self-service tools, enabling users to resolve issues, inquire about transactions, and access banking services without human intervention. Digital banks like TymeBank – a fully digital South African bank has embraced AI-powered solutions to provide round-the-clock assistance, low-cost transactional accounts and high-yield savings accounts mainly for low-income rural customers.
Finally, partnerships between fintech companies; who have typically shown themselves to be more agile in churning out customer-centric innovation solutions, and traditional banks; who have typically been more meticulous and deliberate, has often yielded the right balance of optimal user experience anchored on a strong compliance regime. This careful balance ensures that customers are both delighted and protected, and the right balance between financial inclusion and financial stability is calibrated.
IV. Trust, Security and Consumer Protection
As digital banking continues to expand, the balance between convenience and security remains a concern. While consumers enjoy seamless access to financial services, they also face growing risks related to cybersecurity, fraud, and data privacy. To address these challenges, central banks across Africa are implementing policies that promote open and digital banking while ensuring robust consumer protection measures. Ghana, for example, has emerged as a global leader in mobile money regulation, recently claiming the top spot in the GSMA Mobile Money Regulatory Index for its strong policies that foster innovation while safeguarding consumers. The country’s supervision framework includes a guideline on consumer recourse mechanism, a directive to mobile money providers on unclaimed balances and dormant accounts, a data protection law among others. In 2023, the Central Bank of Nigeria issued operational guidelines on Open Banking while Bank of Ghana also published a Draft Open Banking Directive in 2024 for Regulated Institutions to facilitate the sharing of customer-consented financial data amongst Regulated Financial Institutions (RFIs).
In addition to regulation, financial literacy initiatives play a crucial role in consumer protection, equipping users with the knowledge to make informed decisions, recognize fraud, and fully understand their rights.
Remarkably, these principles hold true even for future digital banking instruments as Central Bank Digital Currencies (CBDCs). Studies such as Bank of Ghana’s eCedi pilot continue to reveal that one of the most important features of a CBDC for consumers, besides transaction fees and safety standards, was that it was backed by the central bank[9], reinforcing trust in its stability, reliability, and legitimacy as a secure digital currency.
V. What Will It Take To Empower Consumers Across Africa?
Empowering consumers in Africa’s digital banking landscape requires more than just technological advancement. There must be a prioritization of interoperability, collaboration and continuous innovation.
One critical factor is cross-functional cooperation and interoperability across markets. Consumers should have full control over their financial choices, supported by clear and standardized disclosures, proper consent mechanisms, and seamless access to financial services across different platforms and regions. There must be a concerted effort to standardize digital banking regulations and frameworks across Africa, enabling a more integrated financial ecosystem where consumers can transact effortlessly, regardless of borders.
Emerging innovations, such as CBDCs, AI-driven financial services, and cross-border banking solutions, hold immense potential in shaping the future of consumer empowerment. CBDCs could provide greater financial stability, reduce cross-border transaction costs, and improve monetary policy transmission, while AI-powered banking solutions continue to enhance personalization, automate customer support and expand credit access.
Continuous education is another critical factor. Regulators, financial institutions, and FinTechs must work together to ensure that consumers fully understand their rights, financial options, and available protections. Trust remains a cornerstone of financial engagement, and efforts must be made to safeguard data privacy, prevent fraud, and uphold ethical banking practices.
Finally, a dynamic and vibrant fintech ecosystem must be encouraged through policy enablers such as regulatory sandboxes, innovation funds and risk-based licensing regimes, as well as private sector investment to achieve scale.
Ultimately, the success of digital banking in Africa hinges on how well the empowered consumer is understood and served. The modern African banking customer is informed, connected, and expects financial services that are accessible, transparent, and tailored to their needs. By embracing collaboration, education, innovation, and trust-building, the digital banking ecosystem can evolve in a way that truly puts the consumer in control, driving financial inclusion and economic growth across the continent.
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