The African continent, renowned for its diverse culture, breathtaking scenery, and extensive history, has long served as an ideal environment for resiliency and resourcefulness. However, it has faced considerable difficulties in the financial services sector. Africa’s financial landscape has been marked by limited access to banking services, low financial literacy, and a lack of infrastructure.
However, introducing digital banking has contributed to reducing these issues, providing a beacon of hope for millions. In addition to changing the financial environment, this wave is also impacting people’s lives on a personal, professional, and social level.
CONTRIBUTIONS OF DIGITAL BANKING IN AFRICA
Digital banking has brought about transformative changes in Africa’s financial landscape, redefining how people access and manage their finances across the continent. Digital banking has significantly contributed to financial inclusion, economic growth, and overall development with its innovative technologies and services.
This revolutionary shift from traditional banking methods to digital platforms has not only expanded access to financial services but has also fostered greater efficiency, transparency, and accessibility, ushering in a new era of financial empowerment for millions of Africans.
Here are some of the landmark contributions of Digital Banking in Africa:
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Financial Inclusion: Bridging the Gap
Digital banking has helped overcome geographic limitations because even the most isolated areas may now obtain financial services. Thanks to the widespread usage of e-wallets and mobile banking, people can now participate in the financial economy.
For example, Access Bank’s super mobile app, Access More, with over 5,041,831 subscribers, has users in both urban and rural areas, not just in Nigeria but also in other African countries such as Ghana, Zambia, Guinea, South Africa, Mozambique, Sierra Leone, Kenya, Rwanda, Congo, and Gambia, which has contributed to financial inclusion. With access to mobile banking, people can now send and receive payments online, avoiding the risks associated with carrying cash for long distances. This newfound convenience empowers people to save, invest, and secure a better future.
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Business Growth: A Catalyst for Prosperity
Digital banking has become a potent ally for African businesses. Today’s startups, micro-businesses, and SMEs can access effective lending platforms, payment systems, and digital marketing tools. It is common knowledge that funding is one major challenge business owners face. Even those qualified to get a loan are often daunted by the complicated and rigorous process of securing one. One of the ways Access Bank has leveraged the power of digital transformation to support businesses is via Digital Lending.
Digital lending, also known as online lending or e-lending, involves providing financial services, particularly loans, through digital platforms and technologies. It leverages advanced technologies and data analytics, offering borrowers a convenient and efficient way to access funds.
Unlike traditional lending, which typically involves physical branches and paper-based processes, digital lending leverages technology and data to streamline the lending process and make it more accessible, efficient, and convenient for borrowers. The bank curated digital lending products, such as Quick Bucks, designed to meet our customers’ immediate financial needs.
QuickBucks is a Mobile Banking Application for digital loans. It is a platform for all loan products to improve customer’s borrowing experience – for retail loans, credit cards, debit cards, and consumer durable loans. The Quickbucks mobile application has four major products: PayDay Loans, Salary Advance, Small Ticket Personal Loans, and Device Financing.
Payday Loan is an instant loan product for customers (both salary and non-salary earners). With Payday Loan, Access Bank’s customers can borrow money at a low-interest rate without documentation or collateral. Quickbucks offers customers convenience, accessibility, flexibility, and self-service features, benefiting business owners and positively influencing business growth.
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Empowering Communities: Socio-economic Progress
Digital banking is about individual and business growth and fostering socio-economic progress at the community level. By enabling access to financial services, digital banking uplifts entire communities. It is no secret that brick-and-mortar banks are primarily found in developed areas. For people living in undeveloped communities, that is an economic setback.
In Africa, smartphone penetration has been a significant contributor to digital transformation. Digital banking has changed the game by allowing people to send and receive money securely via mobile phones regardless of their economic status, location, or proximity to a physical bank. For people without access to a smartphone to download a banking app, the USSD option has helped with fast and effective transactions.
Access bank USSD option allows airtime buying, funds transfer, merchant/bill payment, balance inquiry, and other services. It’s fast, convenient, secure, and easily accessible. USSD is accessible on even the most basic mobile phones, which makes it an inclusive technology. This financial inclusion has positively impacted their lives economically and enhanced the community’s overall well-being..
THE DRIVERS OF DIGITAL TRANSFORMATION IN AFRICA
While challenges persist, Africa has rapidly emerged as a hub for digital transformation, and several vital drivers are propelling this profound shift:
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Mobile Revolution
The widespread adoption of mobile technology has been a game-changer in Africa. With mobile phones becoming increasingly affordable and accessible, they have become powerful tools for communication, commerce, and access to information. Access More, for example, is a banking app that has served its purpose as a critical driver for digital transformation within the financial sector. By offering customers convenient access to a wide range of financial services through their smartphones or tablets, the app has enhanced user experiences, increased efficiency, and reduced reliance on physical branches.
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Youthful Population
Africa boasts one of the world’s youngest populations. According to the United Nations, Africa has the youngest population in the world, with 70% of sub-Saharan Africa under 30. This demographic dividend is driving digital transformation. The tech-savvy youth are consumers and creators of digital solutions, fostering a culture of innovation across the continent. Many digital solutions are also targeted to this population. The personalisation on the Access More App speaks to the youthful population. The personalised interface and services have captivated young people by offering tailored experiences and financial insights. This customisation allows young users to align the app with their preferences and style, creating a sense of ownership.
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Fintech Innovation
