LONDON, United Kingdom, 3 December 2025-/African Media Agency(AMA)/-Backbase, the leader in AI-powered banking, in partnership with African Banker magazine, has released the third edition of the Africa Digital Banking Experience Series 2025. The latest report, Next-gen Banking Innovations: AI, Cybersecurity & Segment-based Banking, reveals that Artificial Intelligence (AI) and cybersecurity are central to the digital transformation strategies of African banks, enabling them to achieve hyper-personalisation, drive growth, and manage escalating risks.
Drawing on insights from a survey of 203 senior banking executives across 40 African countries, the survey highlights a strong consensus among banking executives regarding the importance of AI in their medium-term strategies.
Key findings from the report include:
- A vast majority of participating banks view AI as crucial, with 85.4% of respondents considering AI and AI-driven services as very or extremely important for improving operational efficiency and customer engagement over the next five years.
- The most common application of AI is in customer services, including virtual assistants and chatbots, cited by 64.8% of banks surveyed. Fraud detection (47.7%) and enhanced credit scoring/lending (45.3%) are also primary areas of deployment.
- A significant 81.5% of the banks consulted reported having experienced a cyber threat or attack over the past year. Phishing schemes and social engineering attacks, often powered by AI, are among the most common threats.
- Banks are actively strengthening their defences, with 79.7% adopting enhanced cybersecurity measures and 67.2% increasing investment in cybersecurity infrastructure. Additionally, 60.9% have implemented real-time fraud detection systems.
- Major challenges slowing AI implementation include the difficulty of integrating new technology with existing legacy systems (58.6%), high upfront implementation costs, the lack of skilled personnel, and concerns over data privacy and regulatory compliance.
- Banks are moving beyond the traditional mass-market approach to deliver more individualized, meaningful experiences. This shift is driven by the need to meet the varied needs of a customer base that includes sophisticated mobile-first users and first-time digital users.
The report findings also signal that the African banking sector is at a decisive turning point. While regions like East Africa lead the way in integrating AI into digital strategies and North Africa prioritizes big data for enhanced security, the challenge of merging innovation with integrity is continent-wide.
Heidi Custers, Global Strategy & Transformation Director at Backbase, commented: “The most forward-thinking African banks are realising that growth and security are no longer separate strategies, they are two sides of the same digital coin. AI-driven engagement builds relationships; AI-driven security protects them. Segment-based banking ensures those experiences remain human, relevant, and inclusive.”
The full report is now available at https://www.backbase.com/insights/next-gen-banking-innovations-ai-cybersecurity-segment-based-banking
Distributed by African Media Agency (AMA) on behalf of Backbase
About Backbase
Recognized as a category leader by Forrester, Gartner, Celent, and IDC, Backbase powers the digital and AI transformations of over 150 financial institutions worldwide. See some of their stories here.
Founded in 2003 in Amsterdam, Backbase is a global private fintech company with regional headquarters in Atlanta and Singapore, and offices across London, Sydney, Toronto, Dubai, Kraków, Cardiff, Hyderabad, and Mexico City.
About African Banker
African Banker is the continent’s premier publication dedicated to banking and finance. Published quarterly, it provides in-depth coverage and authoritative insights into the major developments shaping Africa’s financial sector, from fintech and policy reform to investment trends and executive leadership. As a trusted partner of leading institutions, African Banker convenes key stakeholders through its awards, summits, and special reports.
Media Contact:
Stefan Maritz: stefanma@backbase.com
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Source : African Media Agency (AMA)
