Africa’s young, tech-savvy population is leading the way in reshaping the continent’s future. As the world’s fastest-growing population, young Africans are not only influencing tomorrow’s society, but are also at the heart of innovation in financial services, particularly through the adoption of mobile technology.
Industry collaboration is increasingly vital to ensure that the benefits of mobile financial services are widely accessible, with multiple stakeholders working together to open new doors to financial inclusion. While financial inclusion has been limited by legacy banking systems, it is now gaining momentum thanks to the widespread use of mobile devices.
The scale and urgency of financial inclusion
The urgency of advancing financial inclusion in Africa cannot be overstated. According to the World Bank Global Findex 2021, around 30% of adults in developing economies remain unbanked, lacking access to even the most basic financial services. This exclusion disproportionately affects women, rural populations and small business owners, limiting their ability to save, invest and withstand financial shocks.
As Africa’s population continues to grow and urbanize, closing this gap is not only a social imperative, but also a significant business opportunity for financial institutions, FinTechs and other stakeholders seeking sustainable growth.
The mobile money revolution
Mobile phones have become more than just communication tools; they have become financial enablers. According to the report GSMA’s “The State of the Industry Report on Mobile Money 2025”, nearly $1,7 billion passed through mobile money accounts globally last year, which equates to $3,2 billion in transactions every minute.
Sub-Saharan Africa remains the epicentre of mobile money, with over 1,1 billion registered accounts. Mobile banking, FinTech solutions and digital wallets are empowering people, providing access to banking services, payments and credit without the need for physical branches.
Mobile money platforms such as Unitel Money in Angola, M-Pesa in Kenya, MTN Mobile Money in West and Southern Africa and Orange Money in Francophone countries have brought formal financial services to millions of people who were previously excluded.
The rapid adoption of smartphones in Africa is fueling innovation in financial services. The continent’s young, entrepreneurial population is using mobile platforms for peer-to-peer trading, investing, and lending. The convenience of mobile banking allows consumers to send and receive money, pay bills, and obtain microloans, all from their devices. Businesses are also taking advantage of this trend, digitizing supply chains, payroll, and payment systems.
Digital inequality hits African women the hardest
Variations between markets and business models
It is important to recognise that Africa is not a monolith. Regional variations abound in both the pace of adoption and the types of models that flourish. East Africa, led by Kenya and Tanzania, is often cited as the global leader in mobile money adoption, while West Africa has seen strong growth through partnerships between telcos and banks.
In Southern Africa, regulatory openness has enabled a wider range of digital banking products.
Persistent barriers: Infrastructure and literacy
Despite this impressive progress, fundamental barriers continue to limit widespread adoption in Africa. Network coverage remains patchy, particularly in rural and remote areas where mobile connectivity may be unreliable or absent altogether. Access to electricity is another critical challenge; According to the International Energy Agency, almost 600 million people in sub-Saharan Africa still do not have reliable energy., which makes it difficult to charge devices and maintain consistent connectivity.
Furthermore, gaps in digital literacy mean that many potential users lack the skills needed to navigate digital financial services platforms with confidence and security. For businesses and service providers, addressing these fundamental infrastructure and education challenges is essential to unlocking the full potential of mobile-based financial inclusion.
Alternative data and the credit gap
Another persistent obstacle is the lack of formal credit history, which continues to prevent many people from obtaining loans or financial assistance. Adopting innovative credit scoring models, such as using alternative data sources of mobile payment histories and utility bill records, offers a promising solution to assess creditworthiness in a more inclusive way.
By leveraging data analytics, artificial intelligence and machine learning, both traditional banks and FinTechs are finding new ways to assess creditworthiness and extend services to previously underserved populations.
Regulatory environment and security
The regulatory landscape in Africa is evolving, with some countries embracing digital finance more enthusiastically than others. A lack of cross-border harmonization could complicate efforts to scale up services or introduce cross-border solutions, especially for small, micro and medium-sized enterprises (SMEs).
Equally important is the ongoing need to build and ensure trust in digital financial services. Robust fraud detection and identity verification measures are essential to safeguard transactions and foster consumer confidence. TransUnion research reveals that in the first half of 2024, 4,9% of all attempted digital transactions originating in South Africa were suspected of being fraudulent, highlighting risks in the evolving financial ecosystem.
Opportunities and recommendations
Looking ahead, the African financial sector must continue to embrace technological innovation while addressing challenges around digital literacy, accessibility and regulatory harmonization. Multi-stakeholder collaboration and investment in consumer education will be vital to unlocking the full potential of mobile financial services. Emerging trends such as open banking, digital currencies and embedded finance present new challenges and opportunities for companies prepared to innovate.
By working together, industry players can create an environment where digital finance delivers significant and lasting economic opportunities across the continent. The future of mobile finance in Africa is undeniably bright. With continued innovation, partnership and a focus on inclusion, the continent’s youth will not only benefit but also lead a transformation that promises sustainable economic growth and prosperity.
