By Thabo Molefe, Head of Africa Regions at TransUnion
Africa’s young, tech-savvy population is leading the charge in reshaping the continent’s future. As home to the fastest-growing demographic in the world, Africa’s youth are not only influencing tomorrow’s society but are also at the heart of innovation in financial services, particularly through the adoption of mobile technology. Industry collaboration is increasingly vital for ensuring that the benefits of mobile-enabled financial services are widely accessible, with diverse stakeholders working together to open new doors for financial inclusion. Whereas financial inclusion was once constrained by legacy banking systems, it is now gaining momentum thanks to the widespread use of mobile devices.
The Scale and Urgency of Financial Inclusion
The urgency of advancing financial inclusion in Africa cannot be overstated. According to the World Bank’s 2021 Global Findex, nearly 30 percent of adults in developing economies remain unbanked, lacking access to even the most basic financial services. This exclusion disproportionately affects women, rural populations, and small business owners, limiting their ability to save, invest, and withstand financial shocks. As Africa’s population continues to grow and urbanise, bridging this gap is not only a social imperative but also a significant business opportunity for financial institutions, FinTechs, and other stakeholders seeking sustainable growth.
The Mobile Money Revolution
Mobile phones have become more than just communication tools; they have become financial enablers. According to GSMA’s The State of the Industry Report on Mobile Money 2025, almost $1.7 trillion flowed through mobile money accounts globally last year, equivalent to $3.2 million worth of transactions per minute. Sub-Saharan Africa remains the epicentre of mobile money, accounting for over 1,1 billion registered accounts. Mobile banking, FinTech solutions, and digital wallets are empowering individuals by providing access to banking, payments, and credit, without the need for physical branches.
Mobile money platforms, such as M-Pesa in Kenya and MTN Mobile Money across West and Southern Africa, and Orange Money in Francophone countries have brought formal financial services to millions who were previously excluded.
Africa’s rapid smartphone adoption is fuelling further innovation in financial services. The continent’s young, entrepreneurial population is making use of mobile platforms for business transactions, investments, and peer-to-peer lending. The convenience of mobile banking allows consumers to send and receive money, pay bills, and secure microloans, all from their devices. Businesses are also capitalising on this trend by digitising supply chains, payroll and payment systems.
Variations Across Markets and Business Models
It is important to recognise that Africa is not a monolith. Regional variations abound in both the pace of adoption and the types of models that flourish. East Africa, led by Kenya and Tanzania, is often cited as a global leader in mobile money adoption, while West Africa has seen strong growth through partnerships between telcos and banks. In Southern Africa, regulatory openness has enabled a wider range of digital banking products. Francophone Africa, though traditionally slower to adopt, is now catching up rapidly as barriers fall and consumer trust grows.
Persistent Barriers: Infrastructure and Literacy
Despite this impressive progress, fundamental barriers continue to limit widespread adoption across Africa. Network coverage remains uneven, particularly in rural and remote areas, where mobile connectivity can be unreliable or entirely absent. Electricity access is another critical challenge; according to the International Energy Agency, nearly 600 million people in sub-Saharan Africa still lack reliable power, making it difficult to charge devices and maintain consistent connectivity. Additionally, gaps in digital literacy mean that many potential users lack the skills needed to navigate financial services’ digital platforms confidently and securely. For businesses and service providers, addressing these foundational infrastructure and education challenges is essential for unlocking the full potential of mobile-enabled financial inclusion.
Alternative Data and the Credit Gap
Another persistent barrier is the lack of formal credit history, which continues to prevent many individuals from securing loans or financial assistance. The adoption of innovative credit-scoring models, such as drawing on alternative data sources from mobile payment histories and utility bill records, offers a promising solution for assessing creditworthiness more inclusively. By leveraging data analytics, artificial intelligence, and machine learning, both traditional banks and FinTechs are finding new ways to assess creditworthiness and extend services to previously underserved population.
Regulatory Environment and Security
The regulatory landscape in Africa is evolving, with some countries embracing digital finance more enthusiastically than others. The lack of harmonisation across borders can complicate efforts to scale up services or introduce cross-border solutions, especially for Small, Micro and Medium-sized Enterprises (SMMEs).
Equally important is the ongoing need to build and secure trust in digital financial services. Strong fraud detection and identity verification measures are essential to safeguarding transactions and fostering consumer confidence. TransUnion research reveals that in the first half of 2024, 4.9% of all attempted digital transactions originating in South Africa were suspected to be fraudulent, highlighting the risks in the evolving financial ecosystem. Additionally, six in ten South Africans reported being targeted by fraud attempts via email, online platforms, phone calls, or text messages during this period. As the digital finance ecosystem evolves, collaboration between FinTechs, established financial institutions, regulators, credit bureaus and data providers will be vital to ensuring that progress in financial inclusion is both robust and sustainable.
Case Studies and Industry Collaboration
There are numerous examples of cross-sector partnerships driving progress. In Kenya, the partnership between Safaricom and various microfinance institutions has enabled instant microloans via M-Pesa, while in Côte d’Ivoire, Orange Money’s collaboration with local banks is opening new avenues for financial services products. These success stories demonstrate that collaboration between FinTechs, telcos, traditional banks, and regulators is essential for advancing financial inclusion on a meaningful scale.
Opportunities and Recommendations
Looking ahead, Africa’s financial sector must continue to embrace technological innovation while addressing challenges around digital literacy, affordability, and regulatory harmonisation. Multi-stakeholder collaboration and investment in consumer education will be vital for unlocking the full potential of mobile-driven financial services. Emerging trends such as open banking, digital currencies, and embedded finance present both new challenges and opportunities for businesses prepared to innovate.
By working together, industry participants can create an environment where digital finance delivers meaningful and lasting economic opportunity across the continent. The future of mobile-enabled finance in Africa is undeniably bright. With continued innovation, partnership, and a focus on inclusion, the continent’s youth will not only benefit from but also lead a transformation that promises sustainable economic growth and prosperity.
