TRANSFORMING LIVES DIGITAL BANKING’S IMPACT ON FINANCIAL EMPOWERMENT IN AFRICA

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:

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, & secure a better future.

Business Growth: A Catalyst for Prosperity

Digital banking has become a potent ally for African businesses. Today’s startups, micro-businesses, 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.

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-andmortar 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 Mobile Revolution

The widespread adoption of mobile technology has been a gamechanger 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.

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.

Fintech Innovation

African fintech startups are at the forefront of financial innovation. They are creating digital payment systems, lending platforms, and insurance solutions tailored to African consumers’ and businesses’ unique needs and challenges. Access Bank has recognised the importance of fintech in staying competitive, meeting evolving customer demands, and driving innovation within the financial sector. In response, the bank has established a dedicated fintech arm called Africa Fintech Foundry to harness the power of technology and propel its financial services into the future. The bank has also built fintech companies from scratch, such as Hydrogen, a digital payment and switching service solution, and Oxygen, a digital lending innovation.

ACCESS BANK: A DRIVING FORCE OF DIGITAL TRANSFORMATION

In Africa, the financial industry, including banks and financial institutions, are major drivers of digital transformation. These industry leaders recognise the potential of technology to enhance financial services, improve customer experiences, and expand financial inclusion. Access Bank has developed and continually upgraded its digital banking platforms, including mobile apps and online banking portals. These platforms offer customers convenient ways to access their accounts, make transactions, pay bills, and manage their finances from the comfort of their homes or onthe-go.

Access More, the bank’s mobile banking app, provides many services, including fund transfers, bill payments, and airtime top-ups. The app also has a lifestyle section where users can book flights, events, or movie tickets. Users can also buy insurance and stock options. Additionally, Access Bank has expanded its agency banking network, enabling individuals and businesses in underserved areas to access essential banking services through authorised agents. This organisation has integrated AI-powered chatbots into its customer service, enabling 24/7 assistance and quick resolution of common queries, thus improving customer satisfaction.

Conclusion

Access Bank has emerged as a prominent driver of change in this digital transformation landscape in Africa. Recognising the importance of financial inclusion, the bank has launched initiatives to bring unbanked and underbanked populations into the formal financial system. From a super app to innovations around agency banking, blockchain, robotic process automation, artificial intelligence, and other digital technologies, Access Bank is instrumental in promoting digital banking and financial inclusion.

By leveraging technology and innovation, Access Bank contributes to African communities’ economic growth and prosperity, exemplifying the potential for positive change in the digital age. As Africa continues to embrace digital transformation, Access Bank stands as a beacon of progress and a catalyst for economic development on the continent. The bank prioritises staying updated with emerging digital trends and will continue to do so to fulfil its vision of being the world’s most respected African Bank.

FinTech Foundry (AFF), an establishment with an overall objective to scout, search and identify industry agnostic start-ups that are solving problems. In addition to supporting start-ups, Daniel leads the team’s venture creation strategy focused on developing digitally-led sustainable businesses. Daniel is an experienced Payment Solution Architect that previously led the Channels Solution Delivery Group in Access Bank Plc before his appointment as Head of Africa FinTech Foundry. Daniel spent the last 17 years innovating and creating cutting edge e-Payment platforms in the financial sector.

Daniel is equipped with a wealth of experience around Leadership, Management, Strategy, CX Transformation, Design Thinking, Solution Architecture, Enterprise Capability, Agile Project Management, and a unique forte to identify and nurture innovative opportunities.

Daniel graduated with a B.Sc. Honours in Electronics with Computer Engineering from the Lagos State University and Advanced Leadership and Management program from the prestigious IMD. He is also an alumnus of the prestigious Lagos Business School and has won several awards from prestigious awarding bodies.