Managing Director of Pan African Savings and Loans, Jacqueline Dufie Mpare has asserted that the rise of digital financing and financial technology does not pose a threat to traditional banking systems, but rather presents an opportunity to enhance and modernise banking services.
Speaking to Diplomatic Times on the sidelines of the 3i Africa Summit, she stated that the rapid evolution of financial technology and artificial intelligence is transforming the banking landscape globally, compelling traditional financial institutions to adapt to changing customer expectations and emerging technological trends.
According to Mpare, digital finance should be viewed as a complementary tool capable of improving banking operations, customer engagement, and service delivery rather than replacing conventional banking institutions.
“It’s not a threat at all. I believe that it’s going to enhance whatever it is that we’re doing today. Digitisation and the conversation around AI are coming in to improve the work that we do,” she stated.
She explained that banks are increasingly leveraging digital tools to better understand customer behaviour, improve accessibility, and provide seamless financial services to clients regardless of location.
“It’s coming in to enable us to understand customers better, serve them better, and also ensure that we are not left behind globally,” she added.
According to the AfricaNenda Foundation’s analysis of the Global Findex 2025, the share of adults in Sub-Saharan Africa with either a bank or mobile money account rose from 34% in 2014 to 58% in 2024, while 51% of African adults had made or received digital payments by 2024.
The expansion has been driven largely by mobile money services and fintech innovation, with Africa accounting for approximately 66% of the global value of mobile money transactions in 2025. Mobile money transactions on the continent reached an estimated $1.43 trillion in 2025, underscoring the growing preference for digital financial platforms over traditional branch-based banking systems.
Traditional banks across Africa have consequently accelerated their digital transformation strategies by investing heavily in mobile banking applications, online banking platforms, artificial intelligence, digital onboarding systems, and fintech partnerships
While expressing optimism about digital transformation within the banking sector, she acknowledged that the growing adoption of digital financial systems also comes with significant cybersecurity concerns. She noted that trust deficits surrounding digital financing platforms remain a challenge and stressed the need for continuous public education on digital security and safe banking practices.
According to her, financial institutions must strengthen technological infrastructure and security systems to guard against emerging threats such as fraud, identity theft, phishing, impersonation of financial institutions, and unauthorised access to confidential customer information including passwords and PINs.
“While we are digitising systems and onboarding customers onto digital platforms so they can bank from the comfort of their homes or workplaces, there is also the threat of people trying to hack into systems and gain access to customer data and records,” she cautioned.
She emphasised that although digital threats are inevitable across industries, the banking sector must continue investing in robust cybersecurity measures and customer awareness to maintain trust and confidence in digital financial services.
A 2025 systematic review on cybersecurity threats in digital banking identified phishing, malware, ransomware, data breaches, and unauthorised access as some of the most significant threats confronting digital banking systems globally
Mpare described the 3i Africa Summit as a critical platform for financial service providers, particularly due to its strong focus on digital innovation, fintech integration, and the future of Africa’s financial ecosystem amid the Fourth Industrial Revolution.
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