Several factors are contributing to Africa 's development as a promising market for challenger banks . Technological innovation , agility and product innovation 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 markets , higher costs and as regulatory pressures encourage them to exit non - core markets . The fact that in 2015 66 % of sub - Saharan Africans did not have a bank shortage 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.