By Thabo Molefe, Head of Africa Regions at TransUnion

Africa’s young, tech-savvy population is at the forefront of reshaping the continent’s future. With the fastest-growing demographic globally, Africa’s youth are not only shaping tomorrow’s society but are also driving innovation in financial services, particularly through the adoption of mobile technology. Collaboration among industry players is crucial for ensuring that the benefits of mobile-enabled financial services are widely accessible, with various stakeholders working together to enhance financial inclusion. What was once limited by traditional banking systems is now gaining momentum due to the widespread use of mobile devices.

Advancing financial inclusion in Africa is a critical priority. According to the World Bank’s 2021 Global Findex, nearly 30 percent of adults in developing economies are unbanked, lacking access to basic financial services. This exclusion disproportionately affects women, rural populations, and small business owners, hindering their ability to save, invest, and withstand financial crises. As Africa’s population grows and urbanizes, bridging this gap is not only a social imperative but also a significant business opportunity for financial institutions, FinTechs, and other stakeholders seeking sustainable growth.

Mobile phones have evolved into financial enablers, transcending their communication functions. According to GSMA’s The State of the Industry Report on Mobile Money 2025, nearly $1.7 trillion flowed through mobile money accounts globally last year, equivalent to $3.2 million worth of transactions per minute. Sub-Saharan Africa leads in mobile money, with over 1.1 billion registered accounts. Mobile banking, FinTech solutions, and digital wallets empower individuals by providing access to banking, payments, and credit without the need for physical branches.

Platforms like M-Pesa in Kenya, MTN Mobile Money in West and Southern Africa, and Orange Money in Francophone countries have extended formal financial services to millions previously excluded.

The rapid adoption of smartphones in Africa is driving further innovation in financial services. The continent’s young entrepreneurs leverage mobile platforms for business transactions, investments, and peer-to-peer lending. Mobile banking’s convenience enables consumers to conduct various financial activities from sending money to paying bills and securing microloans, all through their devices. Businesses digitize supply chains, payroll, and payment systems to capitalize on this trend.

Africa is diverse, with regional disparities in adoption rates and business models. East Africa, led by Kenya and Tanzania, is a global leader in mobile money adoption. West Africa thrives on telco-bank partnerships, while Southern Africa benefits from regulatory openness for digital banking products. Francophone Africa, though slower to adopt historically, is rapidly catching up as barriers diminish and consumer trust increases.

Despite progress, fundamental barriers hinder widespread adoption in Africa. Uneven network coverage, especially in rural areas, and unreliable electricity access challenge mobile connectivity. Nearly 600 million people in sub-Saharan Africa lack reliable power, impacting device charging and connectivity. Additionally, gaps in digital literacy impede users from confidently and securely navigating financial services’ digital platforms. Addressing these infrastructure and education challenges is crucial for maximizing mobile-enabled financial inclusion’s potential.

The lack of formal credit history remains a barrier to accessing loans for many individuals. Innovative credit-scoring models leveraging alternative data sources like mobile payment histories and utility bill records offer a more inclusive approach to assessing creditworthiness. Traditional banks and FinTechs utilize data analytics, AI, and machine learning to evaluate creditworthiness and extend services to underserved populations.

The regulatory landscape in Africa is evolving, with some countries embracing digital finance more than others. Harmonization challenges across borders can hinder scaling services and introducing cross-border solutions, particularly for SMEs. Building trust in digital financial services is vital, necessitating robust fraud detection and identity verification measures to secure transactions and instill consumer confidence.

Cross-sector partnerships drive progress in Africa. Safaricom’s collaboration with microfinance institutions in Kenya enables instant microloans via M-Pesa. Orange Money in Côte d’Ivoire partners with local banks to expand financial services. These success stories underscore the importance of collaboration among FinTechs, telcos, banks, and regulators for meaningful financial inclusion.

The African financial sector must embrace technological innovation while addressing challenges like digital literacy, affordability, and regulatory harmonization. Multi-stakeholder collaboration and consumer education are essential for unlocking mobile-driven financial services’ full potential. Trends like open banking, digital currencies, and embedded finance present new opportunities for innovative businesses. By fostering collaboration, industry players can create an environment where digital finance fosters economic opportunity across the continent.

The future of mobile-enabled finance in Africa is promising. Through continued innovation, partnership, and a focus on inclusion, Africa’s youth will lead a transformation that drives sustainable economic growth and prosperity.