Several factors are contributing to Africa's development as a promising market for challenger banks. Technological innovation, agility and product differentiation are setting up challenger banks to tap into a new, growing market of technology-friendly young Saharan Africans. Meanwhile, incumbents are feeling the threat of challenger banks as they struggle with legacy systems, higher costs and as regulatory pressures encourage them to exit non-core markets. The fact that in 2014 66% of sub-AfricansSaharan Africans did not have a bank account suggests a market with huge potential for growth.
Several factors are contributing to Africa's development as a promising market for challenger banks. Technological innovation, agility and product differentiation are setting up challenger banks to tap into a new, growing market of technology-friendly young Africans. Meanwhile, incumbents are feeling the threat of challenger banks as they struggle with legacy systems, higher costs and as regulatory pressures encourage them to exit non-core markets. The fact that in 2014 66% of sub-Saharan Africans did not have a bank account suggests a market with huge potential for growth.