Bradwin Roper- Chief of Payments Partnerships at JUMO
- 1. 1 Banking as a Service in Africa
- 2. 2 What is Banking-as-a-Service (BaaS)? Banking as a Service in Africa Enabling Embedded Financial Solutions Definition BaaS enables non- banks to offer financial products by using licensed bank infrastructure, technology and AI- driven credit prediction. Embedded Finance Retailers, agri-coops, and apps can integrate savings, credit and payments into their platforms. Ecosystem Expansion BaaS unlocks partnerships and monetises banking infrastructure while enabling innovation and promoting customer retention.
- 3. Financial inclusion in Africa – the current landscape Banking as a Service in Africa Mobile Money and Traditional Banking Penetration Country Variance Kenya (79%), Ghana (70%), South Africa (85%) contrast with Nigeria (45%) and Egypt (27%) Mobile First Models Mobile money drives inclusion 33% of SSA adults use it vs. 10% global average. Sub-Saharan Leap Account ownership rose from 23% in 2011 to 55% in 2021 -led by mobile money.
- 4. Mobile Money Revolution Banking as a Service in Africa Scaling Access Across the Continent User Explosion Africa now hosts 1.1 billion mobile money accounts and 514 million active users. Transaction Growth $1.105 trillion in transaction value in 2024 - up 15% YoY – underscores massive adoption. Global Leadership Africa accounts for over 50% of global mobile money accounts, setting the pace worldwide.
- 5. 5 Barriers to traditional financial inclusion Banking as a Service in Africa Infrastructure, Access, and Credit Limitations Infrastructure Deficits Only 5 bank branches and 7 ATMs per 100,000 adults in Sub-Saharan Africa. Low Credit Access Formal credit penetration remains below 10% in most countries, limiting economic participation. Digital Divide Rural, female, and low- income populations remain underserved despite digital gains.
- 6. 6 Strategic benefits of BaaS for banks and fintechs Banking as a Service in Africa Collaboration, Scale, and Platform Monetisation Infrastructure Monetisation Banks can turn compliance and licenses into revenue streams using tech infrastructure to run or offer these services. Innovation at the Edge Fintechs rapidly build user-facing solutions atop robust banking backends. Scalable Partnerships Cross-sector integration enables broad financial service distribution.
- 7. 7 Unlocking financial inclusion through embedded finance Digital Transformation BaaS enables seamless integration of financial services into non-bank platforms, revolutionising access. Banking as a Service in Africa Massive Market Potential Africa's 514 million active mobile money users and 1.1 billion accounts illustrate vast inclusion opportunities. AI-Driven Innovation BaaS empowers fintechs to launch financial products rapidly with secure, scalable infrastructure. Add AI prediction capabilities for high growth portfolios.
- 8. 8 BaaS impact on credit access Banking as a Service in Africa Expanding Lending Through Digital Infrastructure Low Baseline Only 6% in Kenya and 9% in South Africa access formal credit— vast unmet need. Digital Lending Models: Fintechs use BaaS to offer credit via mobile apps and retail partnerships. Alternative Data AI enables accurate credit scoring using mobile behavior and transaction histories.
- 9. Tangible results Individualised credit scoring models resulted in the inclusion of 21% youth and 33% female customers in the financial system. Realtime lending models take customers’ point-in-time needs and behaviour into account. AI-enabled performance highlights ● YoY Customer eligibility up by 39% ● Non-performing loans at only 4% ● Monthly applications up by 26% ● Number of new-to- finance customers up by 5% ● AI model deployment time reduced by 50% to 24 hours JUMO Case Study (2024) Eligible customers Monthly Applications New Customers Non Performing loans 8,000,000,00 7,000,000,00 6,000,000,00 5,000,000,00 4,.000,000,00 3,000,000,00 2,000,000,00 1,000,000,00 14% 12% 10% 8% 6% 4% 2% 0% Customer inclusion using AI 2020 2021 2022 2023
- 10. 10 10 Partnering with e-money providers Injecting an additional $1222 Million into partners’ ecosystems through JUMO powered financial products Launching 4 New products into existing and new markets In 2024, JUMO positively impacted partners ecosystems by: JUMO partnership success (2024) 68.5% YOY increase in new customers added to partners’ books
- 11. 12 Future trends and recommendations Banking as a Service in Africa Strategic Priorities for a Thriving BaaS Ecosystem Invest in Tech Platforms Banks and fintechs must prioritize scalable, secure infrastructure. Cross-Sector Collaboration Partnerships with agri, retail, health, and telecom sectors drive inclusion. Policy Alignment Work with regulators to foster innovation while ensuring consumer protection.
- 12. 13 Conclusion Banking as a Service in Africa BaaS as a Cornerstone for Africa’s Financial Future Transformational Impact BaaS is scaling digital finance beyond banks and reaching underserved markets. Inclusive Growth Mobile-first models foster inclusion in both rural and urban settings. Strategic Imperative Investments in infrastructure, regulation, and partnerships will drive the next phase.
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- 14. 15 Thank you