Africa is becoming more and more dependent on digital platforms and technology.

According to a recent survey conducted by Backbase, a Dutch provider of engagement banking platforms, banks are placing a higher priority on digital transformation. They are concentrating on improving operations and incorporating cutting-edge technologies like artificial intelligence (AI) and cloud computing to increase customer satisfaction and hasten the release of new products.

According to the study, which surveyed 155 African banks, 76% of the participants said that digital transformation is either their top priority or one of their top three priorities. This indicates that African banks are realizing how important it is to use digital technologies to transform their operations and provide value to their clients.

Banks’ digital transformation efforts are still primarily focused on retail banking (39.5%), but they are also aiming to address more sophisticated operations like mortgage applications. According to the survey, this tendency is most apparent in nations with the largest mortgage markets, such as South Africa, Namibia, and Egypt.

Small and medium-sized businesses (SMEs) are another important area of concentration; according to a survey, 26.3% of banks gave this sector priority. Over 95% of SMEs in Africa are micro firms, most of which still rely heavily on unofficial funding. In spite of this, a lot of African banks still haven’t created digital platforms tailored to SMEs. According to the analysis, there are substantial growth prospects due to this gap.

Digital banking is also being used by African banks to enter new markets at a reasonable price. As an illustration, Egypt’s CIB, which focused mostly on trade finance operations and digital banking services without significantly growing its branch network, is joining the Kenyan market with the acquisition of Mayfair Bank.