AI And Digital Innovation Poised to Continue Shaping The Banking Landscape in Africa – KPMG Survey
According to the findings of KPMG’s inaugural Southern African Banking Survey that was released yesterday, it revealed that Artificial Intelligence (AI) and Digital innovation are poised to continue shaping the banking landscape in Africa.
This trend reflects the ongoing evolution of the banking sector, driven by technological advancements and changing consumer preferences.
Respondents of the survey indicated that growth in the banking sector would be primarily fueled by opportunities in corporate banking, investment banking, and transaction banking, with retail and wealth management following closely behind. This growth is expected to be underpinned by innovation, particularly in mobile banking, which enables more customers to access banking services conveniently.
According to the survey, there remained significant opportunities for the unbanked through alternative finance, which includes the rapid growth that was expected from innovations such as blockchain technologies.
Speaking on this, a partner and head of Banking Advisory at KPMG in Southern Africa Auguste Claude said,
“One need only look at the remarkably quick uptake of mobile payments across Africa, and then compare it to the more legacy systems still prevalent in the developed world. AI and digital innovation open further opportunities for financial inclusion, personalization, and customer service”.
However, the survey found that key challenges for expansion across the continent were the existence of a reliable regulatory framework, solid governance and transparency across the industry, as well as considerations around anti-money laundering and compliance, as well as currency and political risk.
Overall, the findings of the KPMG survey underscore the pivotal role of AI and digital innovation in shaping the future of banking in Africa.
