Across Africa, the last decade has seen an expansion in access to financial services. Millions of people who were previously excluded from the formal financial system can now send and receive money through mobile wallets, digital banking platforms, and other fintech services.
Countries across the continent have embraced mobile money and digital infrastructure, enabling faster and safer financial transactions even in areas where traditional banking networks are limited.
But as access widens, industry leaders say the next challenge is no longer simply connecting people to financial services. Instead, the focus is shifting toward trust, credit access, and economic opportunity.
In an interview, Lee Naik, Chief Executive Officer and Regional President of TransUnion Africa, explained how data, digital identity systems, and financial innovation are reshaping the continent’s financial ecosystem.
Mobile wallets and digital payment platforms have become a central gateway to financial inclusion across Africa. However, Naik argues that true inclusion goes far beyond the ability to send or receive money.
“Financial inclusion is not just about payments. The real question is whether people can access credit, start businesses, and build wealth.”
Digital public infrastructure, such as national digital identity systems, interoperable payment platforms, and e-cash networks, is transforming how financial institutions understand consumers and small businesses.
These systems allow lenders to analyse new data sources, including mobile wallet transactions, telecommunications usage, and even agricultural activity, to assess the creditworthiness of individuals who lack a traditional banking history.
For millions of Africans working in the informal sector, particularly in agriculture, this shift could unlock access to loans and investment opportunities previously unavailable.
One of the most significant trends emerging across African financial markets is the use of alternative data to assess credit eligibility.
According to Naik, credit reporting agencies are increasingly working with telecommunications companies to analyse consented call and usage data from prepaid mobile subscribers.
Such insights can help lenders better understand financial behaviour and extend credit to people who have never taken a formal loan before.
“In many African countries, large parts of the population operate outside formal employment. Using alternative data, from telcos, digital wallets, or agricultural records, can help create a more complete financial picture.”
The approach is already being tested in several markets across the continent, as financial institutions explore ways to serve millions of individuals and small businesses that remain outside traditional credit systems.
While technology is expanding financial access, Naik emphasised that trust will ultimately determine whether digital finance can deliver lasting impact.
“Technology alone is not enough,” he said. “Artificial intelligence, digital platforms, and data systems can only succeed if consumers trust them.”
Building that trust requires strong collaboration between regulators, financial institutions, technology companies, and consumers.
Education and financial literacy are equally critical. As more people join digital financial systems, they must understand how credit works, how their financial data is used, and how to protect themselves from fraud.
The rapid growth of digital finance has also introduced new challenges.
As more consumers connect to online financial services, cybercrime and fraud risks increase, often driven by unfamiliarity with digital technologies.
Naik said responsibility for managing these risks lies across the entire financial ecosystem, from policymakers and regulators to private companies and consumers.
“Education is essential, without digital literacy and consumer protection, innovation alone will not deliver the outcomes governments want.”
Credit bureaus also play a critical role in strengthening transparency by helping consumers understand their credit profiles and financial standing.
Providing accessible tools that allow individuals to view and monitor their credit history can help build confidence in digital financial systems.
Looking ahead, Naik believes the combination of digital infrastructure, alternative data, and stronger consumer trust could significantly expand access to financial opportunity across Africa.
Sectors such as agriculture, where millions of Africans earn their livelihoods, present particularly promising opportunities.
Improved access to credit for farmers, for example, could enable investment in seeds, equipment, and productivity improvements, strengthening both local economies and regional food supply chains.
“The bigger challenge, and opportunity, is bringing hundreds of millions of Africans into the formal financial ecosystem. With the right combination of infrastructure, data, and trust, that transformation is entirely possible.”
