Industry leaders from the banking and technology sectors gathered at the ENGAGE Dubai summit to discuss how artificial intelligence (AI) can reshape the future of banking in Africa. The focus was on how AI could deliver improved customer experience, financial inclusion, and sector-wide modernisation.

While global banks are increasingly using AI in customer service bots, fraud detection, and internal processes such as compliance reporting and software workflows, broader adoption remains a work in progress. McKinsey reports that around 80% of IT budgets in banks still go toward maintaining outdated systems, leaving little room for innovation.

Jouk Pleiter, Founder and CEO of Backbase, addressed attendees with a clear message: banks that invest in AI today will lead tomorrow. “A huge opportunity is knocking on the door. In the last ten years we’ve focused mostly on mobile-first basic servicing. Over the next ten years we will focus on AI-driven growth,” he said.

Pleiter urged banks to shift from legacy systems, centred around products and channels, to customer-first platforms integrated with AI. Citing Backbase’s Intelligence Fabric, which embeds AI directly into its ecosystem, Pleiter highlighted how this transformation is already underway. He stressed the urgency for African banks to embrace this change and modernise. Although Backbase is already working with several banks across the continent, he said much more momentum is needed.

He offered examples of how AI is already delivering value, noting that “McKinsey says that financial institutions often spend one to four weeks creating credit-risk memos. Generative AI could cut time spent on credit-risk memos by 20-60%.”

Large Language Models (LLMs) are also becoming key in banking. Pleiter described how they are helping customers manage payments, view transactions, and handle card services across different platforms with ease.

The company is further using AI to personalise product recommendations and marketing campaigns by analysing customer behaviour. These insights offer early warnings for retail customers, help small businesses with cash flow forecasting, and assist relationship managers in assessing client health.

For banks aiming to adopt AI, Pleiter recommended a phased approach. “A step-by-step strategy for progressive banking modernisation is critical, beginning with user interfaces and gradually extending to backend systems,” he said.

Clearing the Roadblocks

Bhaskar Dasgupta, senior advisor at the Sheikh Hamdan Bin Ahmad Al Maktoum private office, addressed the persistent barriers holding banks back from meaningful innovation.

Dasgupta emphasised the cost and complexity of moving away from ageing infrastructure. “Transitioning to new systems is expensive and risks service disruptions, which limits swift innovation,” he explained.

Cultural resistance within traditional banks was another concern. “We come from cultures that are very much centred around patriarchal norms in our society. They make their way into the workplace and they undermine women’s leadership,” said Likeleli Monyamane, Head of Digital Programs at Standard Bank.

Dasgupta observed that fintechs and private lenders are outpacing traditional banks by sidestepping these issues. “When a customer goes to a bank for a huge loan, the processes are often lengthy and cumbersome. But the same customer can approach a private credit firm or fin-tech and get a deal that serves their needs in a shorter time.”

He identified digital wallets, robo-advisors, blockchain, and lending platforms as key innovations currently disrupting the banking industry.

Driving Gender Inclusion in Tech

Although AI is seen as a key driver of progress, speakers at the event stressed that digital innovation must also be inclusive. In particular, women entrepreneurs need better access to capital, mentorship, and market networks.

Monyamane, Head of Digital Programs at Standard Bank called for social and workplace reforms to enable more women to lead in finance and technology. “We come from cultures that are very much centred around patriarchal norms in our society. They make their way into the workplace and they undermine women’s leadership. Men need to recognise and support women as leaders.” she said

Ghazal Al Sakaal, Global Head of Digital Strategic Partnerships at Mashreq Bank, agreed that change is happening, despite barriers. “Women are proving that they are able to break the barriers and that they belong at the top. There is a great opportunity for women to build the foundation of fintech,” she said.

Sepo Haihambo, CEO of Commercial Banking at FNB Namibia, drew attention to unequal access to finance. “Another challenge that women face in the fintech and financial services sector is access to capital. There is still a bias towards male-led ventures,” she noted. She added that men often have greater access to investor networks.

Inclusive AI Could Shape Africa’s Financial Future

By placing inclusivity at the centre of AI-driven transformation, banks can unlock new growth opportunities while ensuring their services reach underrepresented communities. Addressing the specific hurdles faced by women-led ventures can strengthen the entire fintech landscape and help unlock untapped markets.

AI is already proving its value in credit scoring, fraud detection, and personalised service. For African banks, embracing this technology, while ensuring that inclusion remains a priority, could redefine the region’s banking sector for years to come.

“A huge opportunity is knocking on the door. Over the next ten years we will focus on AI-driven growth,” Pleiter concluded.