A total of 39% of banks in Africa now ringfence at least $3 million per year for digital transformation and innovation. This is according to a survey that tracked financial technology transformation in Africa’s banking sector.
From the survey, it can be said that there is now an overwhelming consensus over how crucial digital transformation is to the future of African banking:
About 60% described it as the single most crucial factor, and
Another 34% stated it was among their top three priorities
Since the last survey, there has also been an increase in the size of budgets allocated by banks to digital development
A massive 49% of African banks said that they had significantly increased the speed of implementation because of the pandemic
Almost 81% of respondents described themselves as being open to change
However, the survey shows that banks were already attempting to shift from the traditional model before the pandemic, a trend informed by competition from fintechs and digital players.