Across Africa, growing numbers of bank customers are shifting to fintech platforms as a way to avoid mounting service charges imposed by traditional lenders. The trend is reshaping the continent’s financial landscape, offering consumers lower costs, more convenience, and broader access to digital financial services.
banking fees drive discontent
For years, African banks have relied heavily on account maintenance fees, transaction charges, and penalties for late payments as a source of revenue. In many markets, these costs have risen faster than inflation, eroding customer trust. The charges are especially burdensome for low-income households and small businesses, many of whom already face limited access to affordable financial products.
fintechs offer cheaper alternatives
Fintech providers have capitalised on this dissatisfaction by offering services at lower cost and often with greater transparency. Mobile wallets, digital payment platforms, and app-based micro-lending services are providing millions of Africans with faster and more affordable options. By reducing dependence on physical branches and cash transactions, fintechs have cut operational costs and passed on the benefits to customers.
strong uptake in key markets
Countries such as Nigeria, Kenya, and South Africa are leading the shift, with fintech adoption accelerating rapidly. Mobile money platforms in East Africa continue to dominate daily transactions, while digital lenders in West Africa are gaining traction among younger, tech-savvy populations. In Southern Africa, payment apps are attracting customers frustrated with bank fees and slow transaction processing.
financial inclusion gains
The rise of fintech is not only about cost savings but also about expanding financial inclusion. Millions of previously unbanked individuals are now able to access digital accounts, credit, and savings products through their mobile phones. For small and medium-sized enterprises, digital finance offers greater flexibility and access to working capital, helping to drive entrepreneurship and job creation.
banks face competitive pressure
Traditional banks are increasingly being forced to respond to this challenge. Some are launching their own digital platforms, while others are partnering with fintechs to retain market share. However, high legacy costs and slower innovation cycles mean banks often struggle to match the agility and pricing of fintech competitors. Analysts suggest that without significant adaptation, banks risk losing a large share of their retail customer base.
outlook for africa’s financial sector
The ongoing shift from banks to fintechs highlights a fundamental transformation in Africa’s financial sector. While traditional banks will remain important players, especially for corporate lending and larger transactions, fintechs are set to dominate everyday retail services. The pressure of rising fees has accelerated this transition, underscoring the growing demand for low-cost, customer-centred financial solutions across the continent.
REFH – Newshub, 3 September 2025
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