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African Financial Industry Shifts from Rapid Expansion to Streamlined Growth – Deloitte–AFIS Barometer
Key messages
- 74% of executives express confidence in the economic outlook.
- 46% of institutions surveyed make profitability their strategic priority.
- 51% rank cybersecurity among their top concerns.
- 54% of institutions now consider themselves digitally mature (+6 points vs. 2024).
- 77% anticipate AI will have a significant, transformative impact on fraud detection.
- Talent shortages as a concern declined to 30%, down from 39% in 2024.
After several years of accelerated expansion and digital transformation, Africa’s financial industry is entering a new phase of streamlined and disciplined growth, according to the Fifth African Financial Industry Barometer released by Deloitte in partnership with the Africa Financial Summit (AFIS).
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The Barometer is based on a survey conducted between May and September 2025, involving senior executives from more than 70 financial institutions across Africa, including banks, insurance companies, fintechs, microfinance institutions, and capital market operators.
The findings point to a decisive return to fundamentals, with profitability, cybersecurity, and operational efficiency emerging as the new pillars shaping the sector’s development model.
Executive Confidence Hits Record High on Disinflation Tailwinds
Confidence across the African financial sector has reached its highest level to date. In 2025, executives rated their organisations’ three-year economic outlook at 8 out of 10, up from 7.28 in 2024.
- 74% of respondents expressed optimism, while only 4% were pessimistic
- Improved confidence is driven by easing inflation, better operational visibility, and sustained commercial momentum
Microfinance institutions recorded the strongest outlook at 9/10, followed by insurance firms at 8.35/10. Fintech expectations moderated to 8.33/10, down from a peak of 9.25 in 2024, signalling a shift toward more realistic growth assumptions.
Pan-African financial groups remained highly confident at 8.44/10, while international players (7.82/10) and capital market operators (7.5/10) remained more cautious amid global volatility.
Profitability and Efficiency Reclaim Strategic Priority
In 2025, profitability emerged as the top strategic priority for 46% of institutions, marking a transition from expansion-led growth to a more mature operating model.
Three transformation levers now dominate boardroom agendas:
- Customer experience – 85%
- Financial performance – 84%
- Digital transformation – 81%
This renewed focus is yielding tangible results:
- Net operating margins improved for 69% of institutions
- Return on equity (ROE) rose for 57%
- Return on assets (ROA) increased for 58%
However, operational efficiency declined by six points to 54%, reflecting rising costs linked to talent acquisition, technology investment, and regulatory compliance.
Cybersecurity Emerges as a Systemic Industry Risk
Cybersecurity has moved from being a technical concern to a systemic strategic risk.
- 58% of institutions report high or very high exposure to strategic and regulatory risks
- 51% rank cybersecurity among their top concerns, up from 39% in 2024
Cybersecurity is now the top regulatory priority for 97% of respondents, ahead of:
- Digital identification (92%)
- Combating illicit financial flows (87%)
While most institutions have invested heavily in detection capabilities, the Barometer highlights gaps in response and remediation, signalling that true cyber resilience remains the sector’s next major challenge.
Digital and AI Adoption Becomes a Business Imperative
Digital maturity across the African financial sector continues to rise, with 54% of institutions now considering themselves digitally mature, up six points year-on-year.
- Fintechs remain digital leaders, with 67% classified as advanced
- Insurance firms recorded the strongest progress, with 59% now in advanced digital positions, up 19 points from 2024
Artificial intelligence is increasingly viewed as a risk management and efficiency tool, with institutions expecting AI to have a transformative impact on:
- Fraud detection – 77%
- Credit risk analysis – 70%
- Process optimisation – 70%
AI-driven personalisation (72%) and chatbots (68%) are also expanding rapidly, blending efficiency gains with revenue growth opportunities.
Continental Integration Gains Momentum as PAPSS Delivers Results
The Pan-African Payment and Settlement System (PAPSS) emerged as the most operational continental integration initiative.
- 35% of institutions rate PAPSS as highly operational, up 15 points from 2024
- Respondents cited lower transaction costs (25%) and faster settlement times (23%) for intra-African payments
By 2030, payment system interoperability is expected to be the top transformation priority, as institutions seek to connect an estimated 1.6 billion bank and mobile money accounts across Africa.
Financial Inclusion and ESG Shift to Pragmatic Impact
Financial inclusion remains a strategic focus for 39% of institutions, led by:
- Microfinance institutions (100%)
- Fintechs (67%)
Insurance companies are increasingly targeting underpenetrated markets through partnerships with telecom operators and microfinance providers.
On ESG, the Barometer shows a shift toward pragmatism:
- Impact investing remains the most developed area (66%)
- ESG integration declined to 57%, reflecting a focus on initiatives with measurable short-term impact
Progress on gender parity is notable, with 47% of institutions implementing team parity policies and 44% publishing gender-related performance metrics.
Industry Leaders See a Sector Entering Sustainable Maturity
Commenting on the findings, Ambroise Depouilly, Managing Partner at Deloitte Francophone Africa, said the sector has entered a defining stage of development.
“The African financial sector has entered a phase of maturity. Confidence is high, fundamentals are strengthening, and continental integration is becoming a reality. The remaining challenges—cybersecurity, data quality, and interoperability—are those of an ecosystem being built, not defended.”
Similarly, Frédéric Maury, Deputy CEO, Events at Jeune Afrique Media Group, noted a clear strategic refocus.
“Executives are returning to fundamentals. In a more constrained environment, financial performance and operational efficiency are once again becoming the sector’s true strategic compass.”
You can download the full barometer here,
