Fireside Chat with Florian Witt: leading the African Banking Revolution
Expansion of African Financial Institutions' Influence Gains Momentum
The 5th German-African Business Summit in December 2024 brought together over 900 participants to tackle the critical role of banks in shattering the mold for Africa's economic development. German and African delegates gathered to discuss topics like financial sovereignty, digitalization within banking, international cooperation, and emergent financial markets.
By Wolf Brandes, Frankfurt
At the heart of this transformative event, Florian Witt, Africa expert at Oddo BHF Bank, shed light on the recent developments and the pivotal role of mobile banking and cutting-edge core banking systems in Africa's economic transformation. In an era clouded by stereotypes, Witt argued that slicing through the prejudices reveals a thriving economic landscape far removed from the biased depictions.
Surging Forward: The Recent Wave of Progress
- The Future is Mobile: Mobile banking has cemented its position as the key driver of financial inclusion in Africa, tapping into the widespread reliance on mobile connectivity as the primary means of accessing internet services. With smartphone penetration predicted to reach 88% by 2030, the future belongs to mobile-based digital solutions, paving the way for unrivaled expansion and the inclusion of new demographics, particularly in low-income and rural regions where traditional banking infrastructure is sparse [2].
- Resilience in Commercial Banking and Digital Finance: African commercial banks experienced a 22% average increase in brand value in 2025, generating $15.2 billion in new value. The banking sector's resilience and dynamism is evidenced by regulatory reforms, ongoing economic growth, and the integration of traditional and digital banking systems, fueling expansion and fostering a more accessible, tech-driven financial landscape [3].
- Expansion of Microfinance: By 2026, the microfinance industry expects to grow by $300 billion, largely due to organizations making financial services available to the underserved via mobile and digital platforms. This growth is poised to bridge the gap between financial exclusion and inclusion in the formal banking sector [4].
- Partnerships Multiply Potential: The strategic marriage of Mastercard and MTN Group Fintech exemplifies the growing trend of collaborative efforts among industry giants and mobile network operators. Such collaborations aim to extend digital payment services across Africa, providing businesses with efficiencies in operations, reduced transaction costs, and access to untapped opportunities within informal sectors and SMEs - the backbone of African economies [5].
Pioneering the Path to Growth
- Financial Inclusion and Smart Payments: Modern core banking systems empower banks to provide scalable, secure, and efficient services tied to mobile banking platforms, paving the way for instant payment systems. Enhanced financial access for both individuals and businesses stimulates diverse economic activities, from everyday transactions to major investments [1].
- Strengthening Economic Resiliency: Advanced banking infrastructure enables banks to support risk management and extend credit to drive investments and entrepreneurship. This ongoing financial evolution creates stability in the banking sector, inspiring trust in the financial system and in turn attracting investment [3].
- Empowering SME Growth and Digitizing the Informal Economy: Mobile banking and advanced core banking solutions streamline payment processes for SMEs and informal businesses, making everything run smoothly. These innovations bring numerous benefits, including increased access to capital, improved cash flow management, enhanced market reach, and ultimately, boosts to Africa's broader economic development [5].
- Sparking Innovation and Regional Integration: Adopting digital payment systems and implementing regional integration efforts underpinned by modern banking technologies foster cross-border connectivity and trade. All of this plays a vital role in furthering sustainable economic growth in Africa [1].
All things considered, Florian Witt has waxed lyrical about the transformational impact of mobile banking in conjunction with modern core banking systems on Africa's financial landscape. As the double-edged sword at the heart of the continent's ongoing economic expansion, these technologies are equipping the populace with newfound financial access, fostering innovation, and fueling a future where borders are but a figment of the imagination [1][2][3][4][5].
Technology plays a pivotal role in Africa's economic revolution, particularly in the banking sector. Mobile banking, assisted by cutting-edge core banking systems, is a key element driving financial inclusion and fostering growth among small and medium enterprises (SMEs).
The strategic partnerships between industry giants and mobile network operators, such as Mastercard and MTN Group Fintech, are instrumental in extending digital payment services and empowering businesses in Africa through operational efficiencies, reduced transaction costs, and access to uncharted opportunities in the informal economy.
