E-Business
Future of African Super Apps Relies on Great User Experience and Strong Security
Financial institutions are increasingly relying on apps and their turbo charged cousins, super apps, for much needed revenue growth. Organisations that can offer a secure, low-friction app experience are more likely to migrate existing customers to digital channels, attract new customers and lower operational costs, giving them a much needed competitive advantage in an increasingly competitive market.
Africa is one of the fastest growing app markets in the world, with Nigeria, Kenya and South Africa showing particularly high growth since the Covid pandemic.
With rapid urbanisation, a big improvement in connectivity as well as the fact that smartphone connections in Africa are expected to double by 2025, reaching 678 million, it is reasonable to expect that the app economy will see strong growth over the next few years.
Nigeria has shown itself to be a particularly high-growth region and while the volumes of transactions made over apps in Nigeria are still fairly low, the latest figures from the Nigerian government show that app transactions in the last quarter of 2020 account for 80 percent of the value of all mobile transactions in the country.
A good app strategy requires a hard look at security
“Given the growth of apps in Africa, and the growing competitiveness in the financial services industry, it would be detrimental for regional financial institutions to ignore a solid app strategy. We have seen a considerable increase in questions around how to boost security and user experience from many African CIOs over the last 18 months,” explains Tochukwu Iwuora, pre-sales solutions lead at Entersekt. “Poor user experience and concerns over security can result in customers abandoning apps for those of competitor financial institutions, especially amongst the younger generation.”
Iwuora says that while most banking apps currently offer basic functionality such as balance checks, intra and inter-bank transfers, the demand for more functionality such as mobile payments, service subscriptions, and in-app marketplaces, which require interfacing with third parties, are rapidly increasing – and so too, the need for better security.
“When you are making a mobile data subscription or paying a utility bill on an app, you won’t want to jump through hoops when it comes to authentication. Using strong multifactor authentication at the outset means customers are going to have a far better experience. And we are seeing a definite pushback on poor user experience especially from younger users who are used to a seamless experience on their social media platforms,” he says.
Iwuora points out that the friction caused by poor authentication can become even more pronounced when users have to navigate the more function-rich and complex super apps. And, given that these are increasingly where financial institutions and MNOs are focusing their growth efforts, ensuring a slick user experience from the outset becomes critical.
User experience influences super app growth trajectory
Mobile money was born in Africa and continues to dominate the global uptake. Taking the next step in its evolution, apps like M-Pesa in Kenya, which serves more than 47 million users across its markets, are now leveraging their network dominance.
The updated app will now allow users to book bus and train tickets, buy insurance as well as buy tickets for local events, with more options expected in future iterations.
In South Africa, Nedbank Avo goes beyond banking functionality to provide a merchant platform for small traders and has already attracted over a million users and 20 000 merchants.
The VodaPay super app, meanwhile, has reportedly attracted 2.2 million downloads and 1.6 million registered users in just eight months since its launch. The app offers a range of financial services including loans and savings as well as person-to-person payments and a newly launched marketplace for unsecured personal loans.
“Super apps pose a real opportunity for financial institutions and MNOs to monetize their networks, boosting revenue and building sustainability into their business models.
This is especially true in an age where traditional businesses are facing growing competition from fintechs and neo financial institutions which have a reputation for providing a better mobile experience than their traditional counterparts.
However, super apps also face a greater security risk as mobile malware attacks continue to grow,” Iwuora explains.
More moving parts mean more points of weakness
The threat to any app grows as financial institutions add new features and integrate to more third parties, increasing the surface area that is at risk of attack. However, while financial institutions must ensure security across all systems, networks and interfaces, customer-facing security measures like authentication can have a significant impact on the overall user experience.
“The balancing act between keeping users secure and ensuring that they have a low-friction experience is key for attracting and retaining customers. Using an inherence factor such as facial recognition or fingerprint authentication at login is a must. Then, when users engage with third-party providers for sensitive transactional services, step-up authentication by means of another authentication factor, adds additional security,” he says.
Iwuora says that tech savvy financial institutions are already pioneering the use of behavioural analytics to create a more frictionless experience for their customers by silently analysing their transactional and biometric behaviour in the background, and then using step-up authentication only when analytics show high risk of fraud.
“Africa has shown that it is ready to embrace all the convenience and opportunity of the app economy. Migrating consumers onto these digital channels create valuable new revenue streams and lower operating costs. But brands must be aware that poor user experiences created by intrusive authentication could make their app journey much more difficult,” Iwuora concludes.
Equinix, global digital infrastructure company, has launched a cutting-edge LG2.3 data centre in Lagos aimed at fueling Nigeria’s booming tech scene.
Equinix officials at the launch
The data centre is designed to provide businesses with secure, reliable, and high-performance colocation and interconnection services, crucial for supporting the increasing demand for digital services across the region.
Nestled in the bustling Lekki Free Zone, LG2.3 is packed with the latest tech, offering businesses the secure and lightning-fast connections they crave. Think of it as the engine room for Nigeria’s online world, designed to handle the explosive growth of digital services.
The launch featured Bruce Owen, president, Equinix’s EMEA, who cut the ribbon to open the data centre.
“Nigeria is our focus,” Owen declared, emphasizing Equinix’s dedication to powering the nation’s digital growth. “The energy here is incredible, and we’re excited to be part of it.”
On his part, Wole Abu, managing director, Equinix’s West Africa, echoed this sentiment highlighting the increasing global demand for digital infrastructure.
“Africa is on the cusp of a digital explosion, and we’re here to support that growth,” he said.
Nigeria’s digital adoption is skyrocketing, driven by a young, tech-savvy population. Businesses are racing to embrace online platforms, and LG2.3 is perfectly positioned to meet their needs.
This investment is set to create a ripple effect, boosting the economy, creating jobs, and fostering innovation.
LG2.3 is set to be a beacon for Africa’s tech potential.
Equinix’s confidence in the continent aims to attract more global players, turning Africa into a digital powerhouse.
This data centre will act as a vital connection hub, empowering businesses to connect and collaborate, bridging the digital divide.
Equinix’s vision extends beyond Nigeria, with plans to expand across Africa.
strategic move reflects their commitment to building a connected and thriving digital ecosystem.
The success of LG2.3 is a testament to the power of public-private partnerships, with the Nigerian government playing a crucial role in attracting investment.
As Nigeria marches towards a digital future, Equinix’s LG2.3 data centre will be a key driver of progress. It’s a powerful symbol of Nigeria’s digital ambition and a catalyst for Africa’s tech revolution.
Microsoft is celebrating its 50th anniversary with a major leap forward into artificial intelligence, unveiling significant updates to its AI assistant, Copilot.
The announcement was made on April 4, 2025, at the company’s headquarters in Redmond, Washington, marking a milestone for both Microsoft and the AI industry.
As the tech giant celebrates its golden anniversary, the company is setting its sights firmly on the future, particularly with its AI-driven tools.
Microsoft’s Copilot, which has been integrated into various software tools across its ecosystem, has now received a significant upgrade.
The new features aim to make the Copilot assistant more intelligent, personalised, and proactive, which positions Microsoft as a serious competitor in the AI space against other industry leaders such as OpenAI’s ChatGPT and Anthropic’s Claude.
Mustafa Suleyman, head of Microsoft’s AI division, expressed the company’s ambition, saying, “We envision Copilot not just as an assistant, but as a long-term AI companion, one that can learn, adapt, and evolve alongside its users. This goes beyond just responding to commands; it’s about fostering relationships between users and their AI.”
The most notable update to Copilot is its new memory functionality. Now, the assistant can retain information such as preferences, previously used commands, and even personal context, making it more responsive and efficient in future interactions.
This means Copilot can, for example, anticipate a user’s needs based on past behaviours, from scheduling meetings to suggesting restaurants for a night out.
In addition to the memory features, Copilot’s new “Vision” capabilities extend the AI’s functionality across multiple platforms. Windows and mobile users will now be able to interact with Copilot using both the camera and on-screen elements.
This includes actions such as booking appointments, managing tasks, and even shopping online — all in a more interactive and seamless way.
Scott Guthrie, Microsoft’s Executive Vice President, shared his enthusiasm about the potential of these advancements, stating, “With these new capabilities, we’re not just reacting to AI’s capabilities — we’re shaping the future of how users interact with technology. AI can do so much more than just assist with tasks. It can enrich the human experience.”
The updated Copilot is designed to challenge industry competitors like ChatGPT and Claude, offering more personalised and context-aware interactions.
Microsoft has positioned its Copilot as a tool that not only assists users but builds a deeper, more intuitive relationship over time.
The company has also placed a strong emphasis on AI accessibility. With AI’s growing role in everyday tasks, Microsoft aims to make it easier for users to adopt and benefit from these technologies, regardless of their technological proficiency.
Despite past challenges, including legal disputes over privacy and AI ethics, Microsoft continues to push boundaries in the AI space. Guthrie remarked, “This is just the beginning. As we continue to innovate, we are reshaping how people work, interact, and live with technology.”
With Copilot’s advancements, the tech giant hopes to continue its legacy of innovation, making AI tools accessible and useful for people around the world.
By 2027 mobile app usage will decrease by 25 per cent due to AI assistants according to Gartner, Inc. Smartphone users will turn to AI assistants, such as Apple Intelligence, ChatGPT, Google Gemini, Meta AI, and others to replace apps for many functions.
In addition to the impact of AI assistants, apps will be consolidated across separate brands and companies, creating mobile app partnerships or consortiums to reach more users per app at scale and defray the cost of creation and maintenance.
“CMOs should begin scenario planning for the impacts of decreased mobile app usage,” said Emily Weiss, Senior Principal for the Gartner Marketing Practice.
“Brands with low app engagement and retention will likely be first impacted – this will be a positive development for brands that are not overly reliant on driving revenue via apps as app development costs will decrease.
Other brands may be severely impacted by the disintermediation of users turning to AI assistants for services. The loss of app users will also result in the loss of first-party data collection and the ability to reach fewer users via mobile push notifications,” Emily added.
By 2026, Over 1/3 of Web Content will be Created for the Purposes of Gen-AI Powered Search According to Gartner’s 2024 CMO Spend Survey of 395 respondents between February and March 2024, the average CMO allocated almost a quarter of their digital marketing budget to search.
Other than end users directly visiting a website, search currently drives more traffic to the average commercial enterprise website than any other referral source.
Given this, a loss of search driven traffic due to algorithmic shifts by major search engines would result in tangible, negative commercial impact to any organisation.
“CMOs will need to direct their teams to hire talent with a strong understanding of how GenAI, and broader AI influences, impacts the performance of their content in search algorithms,” said Weiss.
“It will be important to upskill the function by investing in search and content talent with AI skillsets. These associates will need to have familiarity with creating or optimising content to train and rank within evolving search algorithms,” she said.
By 2028 digital Mlmarketers will move 30 per cent of their paid social budget to support advertising and partnerships on subscription-based channels It is becoming more challenging for CMOs to maintain, let alone grow, their reach and engagement among consumers.
This is especially true as consumers shift their tech and media behaviors away from social media, to other platforms and subscription based channels.
Gartner’s 2024 CMO Spend survey found that since 2022, paid social has maintained the highest budget allocation for all digital media spend. In 2024, B2C Marketing leaders reported allocating 14.3 per cent for their digital channel budget to social media advertising (an increase from 12.3% in 2023).
“Closed group communities and subscription channels of – fer a potential alternative for social media weary consumers and content creators who want to do more than feed the algorithm,” said Weiss.
“Brands can leverage closedgroup subscription channels – such as Substack, Patreon, and Discord – and the professional creators on them to reach relevant target audiences who are already engaging with content they self-selected into consuming,” she added.
Current AI models, such as large language models (LLMs), lack the agency to autonomously execute tasks and adapt in complex environments.
However, as new levels of intelligence are added, new AI agents are poised to quickly become more capable and reliable as brands seek to address customer facing use cases.
“There will be more AI agents than people, so while current approaches require humans in the loop, this idea will quickly become antiquated.
Marketers will need to determine when and how they can trust AI agents to act on behalf of the brand and customers across key areas,” said Weiss.
Equinix Launches LG2.3 Data Centre in Nigeria
Mafab Communications Has Launched 5G Services- Findings
Microsoft Marks 50th Anniversary with Major Copilot AI Update
TCL Launches ‘vetandpay’ to Combat Online Transaction Fraud
Burna Boy, Other Nigerian Artists Pocket $38m from Spotify in 2024
General News2 days agoAirbnb Community Fund Donates ₦13 Billion to Nonprofits Worldwide
General News2 days agoNigerian Military Makes History with Africa’s First Attack Drones, Bombs
News2 days agoShell, Renaissance Face Legal Action over SPDC Licence Transfer
E-Business2 days agoKike, Nigerian Tech Firm Launches ‘Kike AI’ for Kitchen Innovation
Telecom2 days agoNigeria Heads Anglophone Data Protection Committee
News2 days agoWorld Bank Approves $1.08Bn Loan for Nigeria
Telecom2 days agoHow MIP Is Making a Difference in The Media Landscape
E-Financial2 days agoSterling Bank Makes Online Transfer Charges Free of Charge