Financial technologies are playing a transformative role in expanding access to financial services across the continent. As over half of Africa’s population remains unbanked, these innovations hold the promise of bringing millions into the financial fold.
Under banking and nonbanking are persisting issues across Africa. As of 2024, 75% of Africans do not have any financial account at a bank, mobile money provider, or any other applicable institution, according to data from the “Digital Frontiers Institute.”
“Innovations such as mobile banking and digital wallets allow individuals, even in remote areas, to perform transactions, save money, and access financial services without the need for physical bank branches,” Ilyas Berrajâa, Managing Director for Africa at BPC, a digital solution company, told Barlaman Today in an exclusive interview.
According to the BPC executive, these technologies are bridging the divide between traditional banking infrastructure and underserved communities.
In countries like Morocco, mobile payment platforms such as “M-Wallet” are gaining traction, fostering greater accessibility and convenience. In one survey, 66% of respondents in Morocco said they use open banking to pay their bills and do their banking.
Despite their rising popularity, trust in digital systems and cybersecurity remain areas needing attention, Berrajâa contended.
Rising Cybersecurity Threats in Africa
Financial technology has much to offer Africa’s young tech-savvy population. However, the continent is largely unprepared for increasing cyber threats. Interpol’s Africa Cyberthreat Assessment report indicates that more than 90% of African businesses operate without the necessary cybersecurity protocols.
African businesses are already feeling the weight of cybersecurity unreadiness. According to Techcabal, the continent is losing USD 4 billion annually to cybercrime.
Cybercrime affects more than the bottom line of companies. This tech-rooted crime can equally compromise company data, lead to theft of intellectual property, and damage brands and reputations.
For the BPC executive, Africa’s lack of cybersecurity readiness can be narrowed down to two factors. “The biggest obstacles to improving cybersecurity in Africa’s financial systems include legacy infrastructure and a lack of skilled cybersecurity professionals,” Berrajâa noted. Many institutions rely on outdated systems that are vulnerable to modern cyber threats.
Upgrading these systems is critical, as it addresses skills gaps through training and partnerships. Berrajâa understands the importance of such collaboration. “Investing in staff training, cybersecurity awareness campaigns, and robust collaborations with regulators and governments is crucial to building a resilient and secure financial ecosystem,” he explained.
Experts identify the cost as another major factor behind Africa’s weak cybersecurity infrastructure and reluctance to embrace new technologies.
Scaling Through Innovation
To make these solutions affordable and scalable, BPC, like other financial technology companies, employs strategies that reduce costs while enabling financial institutions to grow.
“We leverage cloud-based solutions and modular, scalable platforms, which reduce upfront costs for financial institutions and enable a pay-as-you-grow model,” Berrajâa shared. This approach allows organizations to adopt cutting-edge technology without prohibitive expenses.
The integration of AI-driven systems and digital-first banking platforms is another area of focus for BPC. As Berrajâa revealed, “One exciting initiative involves our collaboration with digital banks to provide comprehensive banking services through entirely digital platforms.”
By tailoring solutions to the needs of local markets, these partnerships aim to foster inclusion and trust in digital financial services.
The road to full financial inclusion in Africa is complex but promising. With technologies like mobile banking, agent networks, and AI-powered platforms, institutions are better equipped than ever to address the challenges. Berrajâa concluded. The ultimate goal is to “empower financial institutions to protect their customers and restore trust.”