A new landmark report released by Backbase, a global leader in AI-powered banking technology, in partnership with African Banker magazine, has highlighted the rapid transformation of small and medium-sized enterprise SME banking across Africa. Titled Small Business Banking: Africa's Next Growth Segment , the report draws on insights from over 200 senior banking executives from across 40 African countries and offers a data-driven look at how banks are reimagining their support and offerings for SMEs through digital-first solutions.
SME banking moves to centre stageThe findings are striking: 83 of African banks now view SME banking as "very" or "extremely" important, with significant or major investments planned in the segment. This marks a decisive shift, as banks increasingly recognise SMEs as the backbone of Africa's economies and a key driver of future growth.
Mobile banking has become the dominant channel for SME services, with 84 of banks now serving SMEs primarily through mobile platforms. This mobile-first approach is helping banks reach previously underserved businesses, particularly in remote or rural areas.