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Backbase, the global leader in Engagement Banking, in partnership with the African Banker magazine, has launched the inaugural report in the Africa Digital Banking Experience Series 2025, a timely publication that explores the transformation of banking across the continent in an age of hyper-personalisation, AI integration, and financial inclusion.

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The report “Retail banking: Competing for the modern African customer” is based on an exclusive survey of over 200 senior banking executives across 40 African countries. It provides a detailed, data-driven analysis of how African banks are shifting from traditional transactional models to AI-powered platforms that prioritise tailored customer journeys and operational efficiency.

Key findings from the report include:

  • Retail banking remains the main entry point for digital transformation, with 39% of banks prioritising it, followed by SMEs and corporate banking.
  • AI is becoming central to reaching the unbanked, with banks using alternative data and machine learning to de-risk credit and deliver scalable services beyond physical branches.
  • Operational efficiency, financial inclusion, and market share expansion are the top three digital priorities for African banks.
  • Banks are increasingly adopting omnichannel strategies, integrating online, mobile, and physical services to deliver seamless user experiences.

The biggest challenges remain digital literacy gaps (77%), cybersecurity concerns (55%), and limited internet access (52%), though all are expected to decrease with rising digital adoption and investment.

The report also features an in-depth case study of Mauritius Commercial Bank (MCB), showcasing how the Backbase Engagement Banking Platform enabled MCB to rapidly scale and launch new digital services, from SME banking to retail wealth apps, with high satisfaction scores and accelerated feature rollout.

Heidi Custers, Global Strategy & Transformation Director at Backbase said: “This report shows just how far African banks have come in rethinking the customer experience. What stands out is the shift from one-size-fits-all products to more thoughtful, data-driven services. It’s not about chasing trends—it’s about making digital banking work for real people, at scale.”

The full report is available for download now at https://www.backbase.com/insights/reports/african-digital-banking-report-competing-for-the-modern-african-customer

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