by The Africa Digital Banking Experience Series 2025 – Small Business Banking report, created by African Banker in collaboration with Backbase, explores how small and medium-sized enterprises (SMEs) are emerging as the next major growth segment for Africa’s banking sector. Once underserved, SMEs now stand at the center of digital transformation strategies as banks pivot from traditional corporate and retail models toward inclusive, data-driven approaches.
Based on insights from over 200 senior banking executives across 40 African countries, the report reveals that 83% of banks plan major investments in SME banking, recognizing its potential to drive both profitability and financial inclusion. Mobile banking is leading this shift, with 84% of banks using mobile platforms to reach SMEs, though challenges persist—only 42% currently offer full digital onboarding. To bridge gaps in adoption, 70% of banks now provide digital literacy workshops and training.
Technology is reshaping SME finance through AI-driven credit scoring, data analytics, and automation, enabling smarter lending and tailored financial services. With the SME sector representing 95% of all African enterprises and 40% of GDP, this transformation is crucial for economic growth and job creation.
Backbase’s perspective emphasizes that the shift from legacy systems to an “intelligence fabric” powered by AI will define the next phase of banking innovation. Banks that embrace modular, AI-integrated platforms and customer-centric models will not only expand financial access but also build the foundation for Africa’s digitally inclusive economy.
Get the report here. https://tinyurl.com/backbasereport
