Poor Digital Literacy Emerges as Top Obstacle to Online Banking in Africa
According to the Africa Digital Banking Experience Series 2025, produced by African Banker in collaboration with Backbase, more than 77% of surveyed African banks identified poor customer digital literacy as a major challenge in rolling out digital platforms.
A new report on the state of digital banking in Africa has revealed that limited digital literacy is the single biggest barrier preventing customers from fully adopting online financial services. According to the Africa Digital Banking Experience Series 2025, produced by African Banker in collaboration with Backbase, more than 77% of surveyed African banks identified poor customer digital literacy as a major challenge in rolling out digital platforms.
The report underscores a sharp gap in digital skills across the continent. While mobile money has introduced millions of Africans to basic digital transactions, more advanced online banking services—such as digital lending, automated onboarding, or integrated platforms—remain underutilized due to customers’ lack of familiarity with technology. Only half of African countries have included IT studies in school curricula, compared with a global average of 85%, and financial education rates remain similarly low.
This challenge compounds other barriers like limited internet access and cybersecurity concerns, which were cited by 51.6% and 54.7% of banks respectively. But poor digital literacy stands out as the most pressing obstacle, with banks stressing that it not only slows customer adoption but also reinforces fears about the safety of online transactions.
Despite these hurdles, the report points to reasons for optimism. Falling data costs, wider internet access, and increased exposure to mobile-based services are expected to improve familiarity with digital platforms. Moreover, as customers grow more comfortable using secure digital services, banks anticipate that both trust and usage levels will rise, gradually reducing the digital literacy gap.
Industry leaders argue that overcoming this challenge will require coordinated investment in digital and financial education initiatives, alongside efforts to expand affordable access. By building customer confidence and capacity, African banks believe they can unlock the full potential of digital platforms to drive inclusion, expand market share, and improve service delivery across the continent.
