The African Banking Digital Transformation Report, a collaboration between pan-African publication African Banker and Backbase, creators of The Engagement Banking Platform, is a cornerstone in Africa’s financial news landscape, offering in-depth insight into the digital revolution being undertaken by the banking sector across the continent.

A growing African population – forecast to be 2.49 billion by 2050 – coupled with spectacular increases in the number of devices such as smartphones and tablets (mobile phones now account for 75% of web traffic in Africa) is the perfect recipe for an explosion in digital banking. Benefits include speed, convenience, and enhanced user data, meaning that banks can much more readily tailor solutions for their clients. In 2021 – the last year for which full figures are available – 55.07% of the African population owned a bank or mobile money account, compared to 23.33% in 2011.

Digital: the way forward

The 2024 edition of The African Banking Digital Transformation Report revealed that 76% of banks rank digital transformation as either their top priority or among the top three, while the remaining 24% also view it as important. With almost half of the continent unable to access any form of bank account, including approximately 60% of women, this result reflects the opportunity for banks to grow their customer base through an inclusive digital offering.

“I really see AI as a game-changer, both internally and externally”

This year, cloud computing was the most cited technology being incorporated into digitisation strategies. This overtakes Artificial Intelligence and Cybersecurity & Resilience as the primary driver since our 2023 survey. The result can be explained through the growing sophistication of AI solutions, which sees it spill over into other technology areas including Cybersecurity.

Interviewed for the report, Ecobank Group Chief Digital Officer Nvalaye Kourouma said: “I really see AI as a game-changer, both internally and externally” because AI-powered tools help overcome language barriers for engaging customers in different countries.

“We now have the capability to build local natural languages into our AI interactions so that language and writing are no longer barriers.

“Speech and image can be used to communicate more effectively. AI opens the door for a different level of engagement with our customers, so it’s encouraging,” he added.

The 2024 edition of the Report draws on comprehensive survey data from more than 150 banks spanning 35 countries, providing an in-depth analysis of current digital banking trends, key innovations, and digital transformation progress. This release underscores Backbase’s commitment to fostering technological advancements and driving financial inclusion in Africa.

The African Digital Banking Transformation Report was launched during GITEX Africa 2024, which took place 29 – 31 May in Marrakesh, Morocco. The report is available to download now: https://apo-opa.co/3R7BVI0

First Bank of Nigeria has initiated legal proceedings to recover substantial sums of money allegedly embezzled by an employee.

The bank, which boasts a market capitalization of ₦829 billion, reported the incident to the Nigerian Police Force on March 25, 2024, and subsequently obtained multiple court orders to freeze accounts linked to the stolen funds.

The employee—who is currently at large—is accused of transferring those monies to 98 bank accounts—including his wife’s—that were identified as first beneficiaries.

The bank received three court orders between April 4–8, 2024, to block hundreds of bank accounts that were allegedly receiving the stolen funds after reporting the incident to the Nigerian Police Force on March 25, 2024.

While the initial amount found to be diverted was approximately ₦12 billion, three people with direct knowledge of the incident told TechCabal that it currently stands at approximately ₦40 billion ($29 million).

According to a First Bank employee with knowledge of the situation, the employee, named in court documents as Tijani Muiz Adeyinka, was authorized to handle customer reversals in her capacity as a manager on the electronic products team. It implied that he was in charge of an account from which he could credit merchant accounts and process those reversals.

Instead, Muiz allegedly used that power to credit customer requests for reversals to a merchant under his control. He purportedly did not require any additional authorizations because he was the team’s final line of authorization, which allowed him to continue misappropriating client funds for nearly two years without being discovered.

His plot was eventually uncovered when a client filed a complaint, which was then forwarded to the internal control department of the bank. After identifying multiple questionable transactions, the control unit informed the authorities.

“We hereby bring to your notice the discovery of fraudulent transactions into various transactions within and outside the bank and request your good offices to set up the machinery of investigation in place with a view to unravel the circumstances surrounding the said fraud and get the culprits apprehending to face the wrath of the law,” read a letter dated May 10, 2024, from First bank to the Lagos State Commissioner of Police.

First Bank ignored TechCabal’s repeated calls and emails asking for comments.

An inquiry for comments was not immediately answered by a Nigerian Police Force spokesperson. An inquiry for comments was not answered by the Economic Financial Crimes Commission (EFCC) spokesperson.

“I discovered that one Muiz Tijani Adeyinka, a former staff of First Bank was involved in the nefarious posting of fraudulent transactions,” read a statement from the investigating Police officer in charge of the case signed March 26, 2024.

“It was discovered that he made some fraudulent transactions to his wife’s account number (name withheld) domiciled with Zenith Bank, which in turn transferred to other beneficiaries totaling thirty-four accounts which also gave birth to second beneficiaries domiciled with other banks totaling 1,190 accounts,” the statement added.

First Bank did not disclose the amount of money that was stolen in any of the numerous court filings or complaints.

Along with requesting that the Police “unravel the circumstances surrounding the fraud,” it remained silent on how the money was acquired.

Fraud is still a major problem in Nigeria’s financial services sector, even though there was a decrease in cases reported in Q1 2024.

The largest banks in the nation are frequently the target of fraud attacks, despite fintech startups receiving disproportionate attention.

In a bid to help grow the savings habit of Nigerians and promote financial inclusion, Baobab Microfinance Bank has launched its digital savings offering, the Jollof+ app, which allows customers to earn up to 24% per annum on their savings.

Speaking at the launch of the product in Lagos, Eric Ntumba, the Acting Chief Executive Officer of the bank, described the Jollof+ app as a cutting-edge savings application aimed at mitigating the negative impact of inflation on the savings of Nigerians.

He said, “Inflation in the country has continued to rise, reaching 33.69 per cent in April this year. “Jollof+ helps users combat inflation by providing high-interest savings options. With the inflation rate affecting the value of savings, Jollof+ offers a competitive interest rate that helps users protect their purchasing power even in the face of inflation.”

According to him, customers can get up to 24 per cent interest per annum on their savings, which is currently the highest offering in the Nigerian market, while providing individuals and families with easy access to financial growth and security.

He noted that the offerings, which range from Jollof Flex, JollofLock, Ajo+, and Babybox, ensure that customers can manage their financial activities seamlessly while tracking the progress of their savings habits.

Explaining the offerings, Ntumba said the JollofLock allows users to lock their funds for a specified period, earning a higher interest rate compared to a regular savings account.

“The offering, which pays interest upfront, helps users maximize returns by committing their savings for fixed durations. The Ajo+ is a target savings feature that allows users to save individually or as a group towards achieving a goal while earning up to 18.33 per cent per annum Users of the app can also save for their children’s future through the Babybox feature, earning up to 17.22 per cent per annum in interest, “he explained.