What happens when banking meets artificial intelligence? If you were at ENGAGE Dubai, you’d know: sparks fly, systems upgrade (well, ideally), and a lot of serious talk happens about how to drag banks into the 21st century – with AI riding shotgun.
Experts from tech and finance gathered to chew on one big question: How can banks use AI to modernize, improve customer experience and, most importantly, stay relevant in a world where fintechs are running laps around them?
Turns out, there’s a huge opportunity knocking. But most banks? They’re too busy fixing old pipes to answer the door.
AI Wants In. Legacy Systems Say, “Not So Fast”
Let’s start with the big problem: banks spend up to 80% of their IT budgets maintaining outdated systems. That’s like trying to run a Formula 1 race in a beat-up minivan.
Jouk Pleiter, founder and CEO of Backbase, didn’t sugarcoat it. He said banks need to shift from channel- and product-centric systems to AI-driven, customer-first platforms. “AI will live inside platforms and apps,” he explained. “It’s not a plug-in. It’s part of the core.”
Pleiter’s company is already helping several banks leap into the AI era with their “Backbase Intelligence Fabric.” Sounds fancy, but it’s really about embedding AI directly into digital banking platforms so they can do things like analyze customer behavior, forecast cash flow, and even issue credit-risk memos way faster than your average human.
(Side note: McKinsey estimates that AI can slash credit-risk memo prep time by 20–60%. Imagine freeing up your team from that snooze-fest.)
Africa’s Banking Sector: Modernize or Miss the Bus
Pleiter urged African banks to make the jump from legacy systems to AI-powered platforms—not in theory, but now. AI isn’t just about better bots; it’s about survival.
Agentic AI (think: intelligent, autonomous bots that get stuff done) is already being deployed to improve workflows, engage customers, and even drive product upsells. Backbase is also harnessing large language models (LLMs) to help users check their balances, manage payments, and handle card requests—without needing to press 1, then 3, then 5, then rage scream.
But none of this works if banks are stuck in the past.
The Barriers Are Real, But So Is the Pressure
Bhaskar Dasgupta, senior advisor to Dubai royalty (yes, really), pointed out that banks are tangled in red tape. Regulatory compliance, privacy laws, and decades-old infrastructure make bold innovation feel risky.
But here’s the rub: while banks hesitate, fintechs are breezing past the hurdles. Private lenders and tech startups are acting like quasi-banks, handing out loans faster and smoother than traditional institutions.
Cultural resistance is another silent killer. Old-school banking cultures cling to “stability” and distrust disruption—which makes them easy targets for agile fintech competitors.
Innovation Without Inclusion? No Thanks
Let’s talk gender. AI and digital banking can drive serious change—but only if they include everyone in the conversation.
Likeleli Monyamane of Standard Bank called out patriarchal workplace norms that hold women back. “We come from cultures that undermine women’s leadership,” she said. “Men need to recognize and support women as leaders.”
Ghazal Al Sakaal of Mashreq Bank agreed, adding that despite obstacles, women are breaking barriers and proving they belong at the top of the fintech food chain.
But Sepo Haihambo of FNB Namibia pointed out that women-led fintechs still face major struggles in raising capital and gaining access to investor networks. “There’s still a bias toward male-led ventures,” she said bluntly.
That’s not just unfair—it’s bad business. A more inclusive fintech ecosystem means more innovation, more customers, and more growth for everyone.
AI Isn’t the Future. It’s Already Here.
African banks can’t afford to wait. AI is already transforming fraud prevention, credit scoring, customer service, and more. But to unlock real impact, banks need to:
- Modernize tech infrastructure
- Cut red tape
- Shift leadership mindsets
- Make sure women and underrepresented groups are part of the transformation
Because let’s face it—tech without inclusion is just another shiny toy that helps the few, not the many.
This isn’t just about surviving disruption. It’s about redefining banking in Africa—and making sure everyone, from bots to entrepreneurs, gets a seat at the table.