Ecobank has said millions more people in Africa now have access to financial systems due to cashless systems that apply the use of digital technology.
The bank said as of now more and more people are seeing the benefits of mobile banking, according.
The leading independent pan-African banking group, has spearheaded the development of cashless payment systems in Africa through its mobile app and other products.
“Africa is now at the forefront of fintech with 57.6 per cent of the world’s 174 million active registered mobile money accounts (100.1 million) in Sub-Saharan Africa,” said the bank.
Speaking at the Africa Tech summit, the Assistant Vice President, push payments for the Ecobank Group Nshuti Lucy Mbabazi said digital technology is central to what is done at Ecobank.
She said the technology provides great opportunities to open up new markets, increase choice and speed delivery of services.
“For instance, Rwanda, where the summit is taking place, is seeking to move from a cash-based economy to a digital one. The number of digital transactions in Rwanda increased by 11 per cent in the first half of 2017 from 1.37 million the previous year to 1.53 million in the same period, and more and more merchants and dealers are becoming access points,” she said.
Rwanda has had a 26 percent growth in the volume of transactions from 8.6 million to 119 million in 2016/17, representing an increase of a third in value from Rwf 469 billion to Rwf 622 billion.
Point of sale (POS) transactions in Rwanda have almost doubled in volume from 270,084 to 523,473, doubling the cash value to Rwf 32 billion.
Mbabazi said the overall fintech in Africa will grow from around US$ 200 million currently to US$ 3 billion by 2020.
“Going digital provides not just better services and connectivity, but enables banks and businesses to unlock productivity and play a role in development.”
Ecobank is the main sponsor at the Africa Tech summit currently taking place in Kigali, Rwanda.