The Gen Z effect: how young African consumers are changing financial services

Africa’s Gen Z is unique. Born into an era of rapid technological advancement, they are hyper-connected and highly discerning. Unlike previous generations, their expectations extend beyond traditional financial services. They value convenience, immediacy, and transparency—qualities often found in tech-savvy startups and fintech solutions.

A report by Deloitte highlights that Gen Z expects more personalized and intuitive experiences. This trend is echoed in Africa, where digital financial solutions like M-Pesa have revolutionized access to banking. For Gen Z, services that seamlessly integrate into their digital lifestyles—from investment apps to peer-to-peer payment platforms—are non-negotiable.

Take MCB’s Juice Tap app, for instance. This innovative solution caters to the growing demand for frictionless transactions, allowing customers to make payments with a simple tap. Such offerings exemplify what Gen Z wants: banking that is not only fast but integrated into their daily lives.

Yet, while the demand is clear, many banks face significant barriers to delivering these experiences.

Meeting Gen Z’s expectations isn’t straightforward. African banks operate in a complex environment marked by:

• Infrastructure gaps: Limited internet access and outdated systems hinder banks from offering seamless digital services.

• Regulatory constraints: Diverse and often fragmented regulations across the continent slow down innovation.

• Legacy systems: Many banks are weighed down by inflexible, siloed architectures that make scaling digital offerings costly and time-consuming.

These challenges make it clear that banks cannot rely on outdated methods to cater to this new generation of consumers. Instead, they must embrace transformative solutions that prioritize flexibility, speed, and personalization.

Enter composable banking: an approach that enables banks to build modular, customizable solutions tailored to their customers’ needs. By leveraging a unified platform architecture, banks can overcome many of the challenges outlined above. Here’s how:

1. Flexibility through composability: With composable systems, banks can assemble and reassemble components to quickly adapt to market demands—whether that means launching new products or scaling existing services.

2. Easier integrations: A unified platform simplifies the integration of third-party fintech solutions, enabling banks to offer innovative services like real-time payments or AI-driven credit scoring without overhauling their entire infrastructure.

3. Faster time-to-market: By reducing the complexity of development cycles, composable architectures empower banks to roll out new services rapidly, staying ahead of competitors and delighting customers.

4. Personalized customer journeys: Composable systems allow for hyper-personalization, offering tailored experiences that resonate with Gen Z’s preferences.

In regions like Africa, where connectivity and accessibility vary widely, composable banking provides the agility needed to address diverse market conditions while maintaining a customer-first approach.

As Africa’s financial landscape evolves, one thing is certain: the future belongs to banks that can adapt quickly and innovate boldly. Composable banking represents a paradigm shift, enabling financial institutions to not only meet the expectations of Gen Z but also lay the groundwork for sustainable growth.

By embracing this approach, banks can navigate challenges, unlock opportunities, and deliver the seamless, customer-centric experiences that define tomorrow’s banking. In the race to capture the hearts of Gen Z, the time to act is now.