Top 4 Emerging Trends in African banking

Close to two years into the pandemic, it is clear now that the impact of Covid-19 will continue dealing blows to economies worldwide. It has persistently posed significant threats and shocks to the banking and the service sector, and to remain relevant, businesses have been forced to rethink how they operate their businesses.

Most of the innovations various industries have implemented are digitally-driven, and the banking sector has not been left behind.

From WhatsApp banking to other Fintechs, the sweeping change is somewhat unstoppable.

Some of the emerging trends in the African banking sector today include:

1. Mobile banking

With the drive of mobile use in Africa against a backdrop of limited technological access, online banking channels are emerging as the preferred form of engagement.

Banks are now pushing a mobile-first strategy either in the form of mobile-only bank brands or enhanced mobile apps with features such as virtual assistants.

2. Digital-only banking

The acceleration of the digital-first economy means that the new normal in banking is engagement through a digital interface – or neo-banks.

There’s a shift from branch-heavy interactions and product-centric organizations to more seamless digital consumer experiences. Traditional banks are exploring technological solutions to keep up with the neo-bank model.

3. Open banking and Fintech

Fintech innovations offer easy access to vital financial services, and this is why banks are being forced to re-think the customer’s journey in a digital world.

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This has seen fintech providers emerge as potential rivals to the growing adoption of open banking.

Open requires banks to make their APIs (Application Programming Interface) more accessible so that third parties can create new products and services on top of the data. This has seen banks collaborating with Fintech to achieve this goal.

4. Cyber risk and financial crime

The digitization of banking comes with risks associated with cyber-crime. Regulators are now tightening compliance to address the rise of more complex and sophisticated financial crimes.

Banks are having to embrace advanced technologies like analytics and artificial intelligence to address this threat.

Computers may just be the cheat code for businesses to progress and advance at a lightning speed, but it is also tremendously vital to protect this asset at all costs. This involves protecting sensitive data and information that is stored electronically.

With technology advancing by the day, the level of threat from cyber-attacks has also increased with time.

Businesses are especially vulnerable as most of the sensitive company information is stored online – but individuals can succumb to such attacks too.

That is what makes cyber security so indispensable because anyone can be exposed anywhere in this digital economy.

Of course, there are other emerging trends in the sector, but they are all focused on innovation that prepares for a future that will be increasingly driven by technology.

By riding with the ongoing digital transformation, collaboration with FinTech, and the increasing role of artificial intelligence and robotics, banks and financial institutions are redefining themselves to better serve the customer.