Forum Forbes Africa: The African banking system faces "significant challenges"

Jul 29, 2014

The Forum Forbes Africa, which took place on July 25th in Brazzaville, brought together the main players in the world of finance in Africa in a bid to improve access to banking services on the continent.

The Forum Forbes Africa, which took place on July 25th in Brazzaville, brought together the main players in the world of finance in Africa in a bid to improve access to banking services on the continent.

According to experts, the African financial sector still faces major challenges, including a low level of access to banking services in rural areas and the variability of capital among African countries, Les Dépêches de Brazzaville reports.

The sector also faces a lack of innovation in risk management, security, assembly, transparency and housing finance.

According to experts, African banks lack the necessary information to identify risks, which leads them to adopt a cautious attitude. They therefore recommended the establishment of credit bureaus and other devices to improve the evaluation of customer profiles.

In addition, experts said that African banks must make greater use of new technologies to prevent fraud, improve the penetration of their products, reach new audiences and promote savings.

Mobile banking has proven to be an effective tool to increase access to banking services by reducing geographical constraints and transaction costs.

According to official figures unveiled at the summit, the number of subscribers to mobile telephony in Africa was more than 500 million in 2012 and is expected to rise to 600 million in 2016.ADNFCR-2976-ID-801738187-ADNFCR