In
today’s rapidly evolving digital age, customers are increasingly dynamic –
their demands shifting and driving exponential change in how products and
services are used.
Our
challenge as financial service institutions, both traditional and new age, is
effectively grappling with the need to consistently update and refresh digital
platforms, products and services, while maintaining gold standard digital
customer experiences – all at the right economics.
The
benchmark for user expectations isn’t limited to peers in banking or fintech – it
extends to leading global digital platforms like Meta, Crypto providers, and
other intuitive, high-performing technologies, such as Streamers, music, and
video.
Constant disruption
has become the hallmark of digital transformation in banking, widening not only
access and inclusion but also reach. And according to the latest African
Digital Banking Transformation Report, the potential for growth in digital
banking services in Africa only stands to grow even further.
The African technology landscape is continually evolving, and the
ongoing digital revolution that incorporates the majority of the continent’s 1.5
billion people their specific needs is fully underway. Consumers are
increasingly digitally savvy and mobile-led across the continent, with 763 million
registered mobile money accounts operating in Africa, according to 2022 data
from the Global System for Mobile Communications Association (GSMA).
Absa’s own digital adoption rates among customers reflect that, with
digital activity rates reaching 80% in some of our leading markets.
Today’s
African consumers demand speed, convenience, and user-friendly digital
experiences, whether they're interacting with their bank, an insurance
platform, or a tech company. This has raised the bar significantly for
financial institutions striving to deliver gold-standard digital interactions,
while managing costs and operational efficiency.
The Dual Imperative: Experience and Economics
One
of the central challenges for banks and financial service providers is
balancing exceptional digital customer experiences with sustainable economics.
Delivering a top-tier digital experience requires significant investment in
technology, but it also demands a focus on cost-efficiency to ensure
profitability.
Many
institutions, including Absa, are undertaking a comprehensive digital channel
overhaul – a complete ground-up rebuild designed to incorporate cutting-edge
digital capabilities, and improved economics by accelerating time-to-market
digital products.
As
the African digital landscape continues to evolve, maintaining relevance isn’t
just about competing with other banks – it’s about standing shoulder to
shoulder with the best digital businesses globally. To achieve this, financial
services providers must embrace innovation at the intersection of experience
and efficiency.
This
need to innovate is embodied in the rise of Neobanks, where a continuous
digital focus has seen challenger banks continue to seize popularity among
consumers. The recent Brand Finance Journal Study, The Banking 500 2025,
showed that digital-first institutions were consistently moving up the
ranks. While African
banking brands saw 22% growth in the past year, none made the Top 100, but
those focusing on digital solutions and inclusive finance were punching well
above their weight on the Banking 500 index.
Super Apps: The Future of Customer-Centric Ecosystems
But
what is the nexus between digital innovation and inclusive finance? Platforms
that are both accessible and offer entirely different takes on existing
services or are providing new offerings entirely. In recent years, we’ve
witnessed ongoing discourse around the “Super App”, apps that integrate all
banking and service functions (like insurance, investments, and digital
storefronts) onto a single platform, which many claim are revolutionising
the banking sector.
They
provide the versatility customers need, but when developed correctly, offer
highly personalised experiences that are tailored to a specific user. Unlike
traditional banking apps, which focus solely on financial transactions, super
apps cater to broader lifestyle needs. They enable users to access services
such as booking flights, purchasing groceries, or arranging entertainment, all
within a single interface.
However,
if they are not user-friendly, or are prone to
service disruptions, they can completely destroy trust with their
associated brand – which is why investing in such platforms must be done with the
utmost care, and the right developer partners.
But
when these apps are done right, such as the Safaricom’s M-PESA digital payment
platform, which
allows other businesses to embed their own apps inside it, they can utterly
dominate in a given market.
Developing New Digital Ecosystems in Financial Services
Absa’s
own work with Safaricom originated from our goal of delivering exceptional customer
experiences. In Kenya, we’ve pioneered embedded finance solutions to enable
customers to seamlessly access Absa financial products, such as credit,
directly through their Safaricom interface. By integrating our offerings into
an ecosystem that customers already trust and use daily, we create a
frictionless user experience, embodying the principles of embedded finance.
In
Mauritius, we have also established a robust open banking framework that
facilitates integration with third-party platforms. This digital marketplace
empowers external platforms to offer their products to our customers, while
simultaneously enabling us to expose financial services to broader audiences.
The result is a dynamic ecosystem – a digital marketplace tailored to the needs
of modern consumers, blending both financial and non-financial services.
Beyond
ourselves, we recognise that for all financial services providers, enhancing
traditional channels – such as mobile apps, web platforms, and USSD services – will
remain essential, but the next frontier lies in meeting customers where they
are.
Today’s
challenge is persuading users entrenched in familiar ecosystems, such as social
media, to engage with new digital platforms. Asking customers to navigate
governance, security, and compliance hurdles within traditional ecosystems
often results in friction and drop-offs. For the 80
million unbanked adults in sub-Saharan Africa, those craving inclusion in
economies and trading ecosystems, it is essential that we reduce these barriers.
If we continue to use digital innovation to make account creation, payments,
and investments easier, we can reduce poverty, empower our entrepreneurs, and
close the economic gaps across the continent.
We
just have to stay dynamic.
By: Tawanda Chatikobo, Head: Digital Banking, Absa Regional
Operations
