Online Banking Struggles Due to Lack of Digital Knowledge Across Africa

The Africa Digital Banking Experience Series 2025 report, a collaboration between African Banker and Backbase, sheds light on the current state and future prospects of digital banking in Africa.

The report highlights a significant digital skills gap across the continent, with more than 77% of surveyed African banks identifying poor customer digital literacy as a major challenge in rolling out digital platforms. Limited internet access and cybersecurity concerns also emerged as significant hurdles, cited by 54.7% and 50% of banks respectively.

Mobile money has introduced millions of Africans to basic digital transactions, but more advanced online banking services such as digital lending, automated onboarding, or integrated platforms remain underutilized due to customers' lack of familiarity with technology and digital skills.

Industry leaders argue that overcoming the digital literacy challenge requires coordinated investment in digital and financial education initiatives. The Africa Digital Banking Experience Series 2025 involved collaboration between African banks and digital education organizations specifically targeting the digital skills gap in African banking. However, the report does not provide solutions to address the issue of poor customer digital literacy.

The report suggests that gradual increases in trust and usage levels may gradually reduce the digital literacy gap. As customers grow more comfortable using secure digital services, banks anticipate that both trust and usage levels will rise. Increased exposure to mobile-based services is expected to improve customer comfort with digital platforms.

Financial education rates remain low in Africa. Only half of African countries have included IT studies in school curricula, compared with a global average of 85%. Digital education initiatives, along with efforts to expand affordable access, are seen as key to overcoming the digital literacy challenge.

African banks believe that digital platforms can drive inclusion, expand market share, and improve service delivery across the continent. By building customer confidence and capacity, they can unlock the full potential of digital platforms. As the continent continues to embrace digital transformation, addressing the digital literacy challenge will be crucial to achieving these goals.

Despite the challenges, the future of digital banking in Africa looks promising. Falling data costs and wider internet access may improve familiarity with digital platforms, paving the way for a more digitally literate population and a more inclusive financial sector.