By Christine Wu, Interim Co-Chief Executive of Personal and Private Banking at Absa Group
When policymakers and business leaders gathered in Davos for the World Economic Forum Annual Meeting in January, two dominant themes stood out: unlocking new growth and investing more effectively in people. In Africa’s emerging markets, financial inclusion sits squarely at the intersection of both.
Over the past decade, account ownership across sub-Saharan Africa has expanded significantly. According to the World Bank, about half of adults in the region now have access to an account — more than double the share recorded in 2011. Yet this regional average conceals stark differences between countries. In some markets, access remains minimal; in others, account penetration exceeds 90%.
These disparities underscore a key point: Africa does not follow a single financial inclusion path. Between 2017 and 2022, several countries made rapid strides, largely due to mobile money platforms and agent banking networks that reduced barriers to entry. Elsewhere, progress stalled or even reversed. Gender disparities further complicate the picture. The gap in account ownership between men and women stands at roughly 12 percentage points — about twice the average across developing economies. Even where women gain access to accounts, they frequently remain excluded from credit, capital and long-term wealth-building tools. That exclusion is not only a social concern; it represents a lost economic opportunity.
The core challenge is that financial inclusion is still typically measured at the entry level. Opening an account and enabling digital transactions are important steps away from cash-based systems, but they reveal little about how individuals manage finances over time. If inclusion is to support development outcomes, it must extend beyond basic access to encompass savings, insurance and long-term financial security.
The data illustrates the gap. According to Deloitte, insurance penetration across Africa stood at just 1.47% in 2022, compared with a global average of 5.6%. South Africa is a notable exception, with penetration exceeding 11%. Savings rates show a similar pattern. The Organisation for Economic Co-operation and Development reports that domestic savings across many African economies fall below global norms, with a substantial share taking place informally. In the absence of accessible formal products, households often depend on family networks and community-based systems for support.
This highlights a fundamental limitation: the ability to transact digitally does not necessarily equip households to smooth income, build assets or withstand economic shocks. For financial inclusion to deliver durable economic benefits, both policymakers and financial institutions must adopt a broader perspective — one that emphasises resilience and long-term security.
Part of that shift involves making savings products more relevant and appealing, particularly to Africa’s growing youth population, and reframing insurance as a mainstream financial tool rather than a luxury product. It also requires rethinking how financial services are delivered.
Technology is reshaping what is possible. Advances in machine learning and generative AI are enabling more personalised approaches to financial services at scale. Rather than relying on one-size-fits-all models, institutions can tailor products to individual financial behaviours and needs — an approach that could unlock the next phase of inclusion.
Two persistent barriers remain the cost of maintaining accounts and the documentation required under know-your-customer regulations. Many individuals and small enterprises lack formal identification, transaction histories or collateral, which can limit access or drive up pricing when risk is assessed using traditional metrics.
AI-driven analytics offer an alternative. By analysing broader data sets and behavioural patterns — including income flows and spending habits — lenders can evaluate risk more dynamically and potentially extend services to customers previously excluded from formal finance. Some banks are also deploying AI-powered chatbots and digital tools to provide practical financial guidance, helping users build confidence and navigate products more effectively.
Taken together, these innovations suggest a shift from transactional inclusion toward holistic financial participation. The goal is no longer simply to increase account numbers, but to create systems that support savings, risk protection and wealth creation over time.
In African economies, where household resilience underpins broader development, this evolution is critical. Financial inclusion must move beyond access metrics and become a framework for enabling sustained, intergenerational economic participation.