But by the turn of the millennium, change was afoot.

Early web pioneers like Ghanaian professor Nii Quaynor, often hailed as "Africa’s father of the internet", were busy laying the groundwork for the continent's foundational online infrastructure. In 1994, Quaynor introduced Ghana’s first internet service provider, going on to create the pathways that would gradually connect sub-Saharan Africa to the global digital ecosystem. His work, and that of others like him, signalled the beginning of a deeper integration, where technology would become a powerful tool for reshaping economies and unlocking untapped potential.

It wasn’t long before the banking sector seized this opportunity. In 1996, Absa became the first bank in South Africa to launch an online banking service, a pioneering move that – while limited in its early functionality – began to shift how consumers engaged with financial services.

The rapid rise of smartphone and internet penetration across the continent has since been a key driver in the proliferation of digital financial services and mobile money, contributing to 49% of adults in Sub-Saharan Africa now having a bank account – a rate that has more than doubled since 2011 – and positioning the region as a global leader in mobile banking, with the highest number of live services, subscribers, and transactions.

A farmer in rural Kenya can now secure financing for a tractor with just a few clicks; an SME owner in Ghana can transform their smartphone into a point-of-sale (PoS) device; a trader in Tanzania can access trade finance to import goods more seamlessly; and a labourer in Botswana can send remittances to his family in Malawi – all through the power of digital financial services.

By streamlining payment processes, expanding access to credit, and offering savings and insurance products via digital channels, these technologies have democratised access to essential financial services by lowering barriers and reducing dependency on physical banking infrastructure, enabling millions of previously underserved individuals – particularly women, youth, and small business owners – to participate in the formal economy.

But more needs to be done.

Studies show that the gender gap in account ownership in Sub-Saharan Africa is twice the average of developing economies, standing at 12 percentage points, while only 26% of youth hold accounts at financial institutions. Moreover, despite accounting for the majority of registered businesses on the continent and contributing significantly to GDP, many SMEs continue to grapple with limited access to finance.

Besides the cost factor of opening and maintaining a bank account for individuals in low-income or informal sectors, the lack of proper identification or official documentation presents another significant challenge for them. While essential for regulatory compliance, particularly with know-your-customer (KYC) protocols, much of Africa’s unbanked population lacks government-issued IDs, proof of residence, or birth certificates – requirements that are often mandatory for opening a bank account.

To meaningfully overcome these and other barriers, African banks should prioritise the development of advanced digital financial solutions tailored to the continent’s unique socio-economic landscape – solutions that are adaptive, scalable, and, above all, people-centric.

One example of this kind of innovation is the introduction of mobile-based PoS systems, which reduce reliance on traditional hardware. For instance, the roll-out of Absa’s MobiTap across six African countries has enabled merchants and SMMEs to use Android smartphones as PoS devices, lowering the barriers to entry for digital transactions. This kind of solution empowers entrepreneurs by reducing costs and enabling them to conduct business more flexibly, regardless of their location or access to formal infrastructure.

Similarly, digital wallets are gaining traction across Africa, largely due to their convenience and accessibility. With many users opting for mobile wallets over traditional card payments, the financial ecosystem is shifting towards digital-first solutions. The uptake of innovations such as Spark by Absa, a digital wallet that facilitates payments, bill payments, airtime purchases, and even cash withdrawals at ATMs, reflects the growing demand for simple, intuitive tools that enhance financial mobility.

Developing such solutions means going beyond merely digitising traditional services, however. Banks need to build dynamic, collaborative platforms that integrate financial, informational, and operational tools into one cohesive ecosystem. Achieving this requires leveraging data-driven insights, harnessing emerging technologies like Artificial Intelligence (AI) and Machine Learning for personalised services, and creating interoperable systems that streamline transactions and enhance accessibility.  Furthermore, fostering strategic partnerships to drive capital provision and extend the reach of these services will be crucial in embedding financial solutions into everyday commercial activities.

Most importantly, banks should prioritise financial literacy and user empowerment, offering educational tools and resources within their platforms to ensure that clients not only have access to these services but also understand how to leverage them effectively.

The future of financial inclusion in Africa, then, hinges on the ability of its financial institutions to evolve with the needs of its people – turning technology into a powerful equaliser that drives sustainable, long-term development across the continent. 

Written by Saviour Chibiya, Chief Executive of Absa Regional Operations (ARO)