How do you develop a banking application in Africa?

While financial applications have been installed on American and European smartphones for many years, their adoption on the African continent is more recent, but growing at a rapid pace. Demand for digital wallet and banking solutions is booming! Le Backyard takes you through the steps required to develop a banking application in Africa.

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1. Current needs of the African market

In the absence of widespread Internet access, the vast majority of the continent's inhabitants were forced to use mobile money solutions to carry out their banking transactions via the telephone network.

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1. What is mobile money?

It's an electronic payment service that lets you send, receive and store money in an account linked to a cell phone number, without the need for a traditional bank account. 

Examples of mobile money in Africa :

• Moov Money: offered by telecom operator Moov Africa, it operates in Benin, Côte d'Ivoire, Burkina Faso...
• Orange Money: launched by Orange, it is available in Côte d'Ivoire, Senegal, Mali...

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2. An evolution towards banking applications

In recent years, Internet access has become much more widespread, and banks have also emerged on the continent. The result? Practices are changing for users, who are now looking for more comprehensive banking solutions, accessible directly from their smartphone, offering greater comfort and flexibility.

What's more, the BCEAO ( Central Bank of West African States) requires banking establishments to offer mobile applications to their customers, guaranteeing them simple, secure access to all financial services.

Today, there is a real need to develop and implement financial applications in Africa that meet users' expectations.

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3. Special needs

Of course, copying and pasting financial applications from elsewhere is out of the question. African customers have specific needs that must be identified if they are to be met effectively.

Accustomed to the mobile money service, users on the continent are eager to make mobile payments. Added to this are growing expectations in terms of microcredit, international transfers and savings management.

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2. How do you create a banking application in Africa?

If you're wondering how to develop a banking application in Africa, you should know that the process follows the same steps as everywhere else, even if there are some specificities.

1. Define your target

The first step is to define the application's target audience. Since the continent's inhabitants are not yet familiar with this type of tool, it will be necessary to adapt the application's level of complexity and design.

2. Define the scope

It's crucial to define the application's objectives: what needs does it meet, and what problems does it solve? This will enable you to draw up a complete list of essential functionalities, guaranteeing a solid basis for its development and limiting unforeseen events.

3. Define the framing

To frame the development of the application, three key elements must be defined:

• Tree structure: this organizes the application's pages and functions to ensure fluid, intuitive navigation.
• User path: the path followed by the user to complete an action (registration, consultation, etc.). A well-designed path improves the experience and reduces friction points.
• Backlog: prioritized list of features, enhancements and fixes to be integrated. It is used to organize development and adjust priorities during the project.

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4. Defining the specific needs of banking applications

Creating a banking application in Africa presents specific challenges, compared with other types of application. It is therefore essential to adopt a rigorous methodology based on a Core Banking System (CBS). This central system enables balances, transactions and all banking operations to be managed securely.

Certain functions specific to banking applications must be integrated into the product, in particular :

• online account opening ;
• view balance and transaction history ; 
• transfers ;
• mobile payments ;
• refill phone credit ;
• payment of invoices ;
• access to customer support ;
• access to microfinance services.

The user interface must be adapted to customer needs and local infrastructures, whether it's a native application (iOS/Android) or a web app accessible via a browser. This choice is crucial to delivering a fluid, secure experience.

Integration with mobile payment APIs (MTN, Orange Money, MoMo) is also essential to enable users to continue sending money as they are used to.

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5. Guaranteeing transaction security

Security is a major issue in the development of a banking application. It must include technologies such as biometric authentication and dual authentication systems to secure transactions.

Encrypting data is also essential. Encrypting sensitive data, from users' personal information to transaction details, helps prevent the risk of fraud and piracy. In addition, the application must be regularly updated to correct any security flaws and comply with the latest regulations. 

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3. Respect local regulations 

In a sector as sensitive as financial services, compliance with regulations is essential. To guarantee the viability and legality of a banking application in Africa, several aspects need to be taken into account.

1. Compliance with local and international financial regulations

Each country has its own banking regulations and requirements for digital financial services. It's essential to work with specialized legal advisors to ensure compliance with current laws. This is especially true if you wish to cover several countries in the territory.

2. Obtaining licenses and approvals

Before launching your banking application, it is essential to obtain the necessary authorizations from the local banking authorities to operate legally and build user confidence.

3. Data protection and standards compliance

Ensuring the confidentiality and protection of user data is a major priority. This requires compliance with international standards such as the RGPD (General Data Protection Regulation) and local cybersecurity laws.

As mentioned above, encryption of sensitive information and strong authentication are essential to ensure application security and compliance.

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4. Overcoming regional challenges

Although Internet connectivity is now widespread across the continent, there are still challenges to be overcome and taken into account when creating the financial application.

• Adapting to different platforms: in Africa, Android smartphones dominate, but it's crucial to test on different versions of operating systems and with different network configurations.
• Strategic partnerships: teaming up with local companies, telecoms operators or financial institutions is often essential for successful implementation. Partners can facilitate the integration of mobile payment systems such as Orange Money and Moov Money.
• Optimization for low-speed connections: Internet access may be limited in some regions, so it's important to optimize the application for low-speed connections.
• Offline payment solutions: it's important not to leave users without a solution if they're in an area without Internet. In this case, they need to be able to make transactions via SMS or USSD, a technology used for mobile payments in rural areas.
• Adaptation to low-literacy populations: the application needs to be highly intuitive for better inclusion. Working with icons instead of focusing on text is unavoidable.
• Supporting users with tutorials and responsive customer service: given that adoption of the Internet in general, and of applications in particular, is fairly recent, it's essential to support users in their use.

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5. A successful banking application launch strategy

The African continent has its own specific challenges, so you need a launch strategy tailored to market realities and user habits to guarantee the success of your financial application.

1. Communication campaign and partnerships with mobile operators

To maximize adoption, it's essential to run marketing campaigns tailored to each local market. Collaborating with telecom operators enables us to benefit from their network and reach a wider audience via SMS, push notifications and integrated offers.

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2. Registration incentives

It's essential to make your application attractive to future users. You can, for example, offer welcome bonuses, cashback or promotional offers to accelerate app adoption. These incentives must be adapted to the target audience and the market in question.

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3. User training and awareness

In a market where Internet access is relatively recent, it's important to minimize barriers to adoption. Some users may hesitate, fearing that they don't know how to use a banking application.

To counter these limiting thoughts, they need to be trained. Offering interactive tutorials, explanatory videos and responsive customer service can reassure and guide new users. You can also offer face-to-face training sessions, particularly in rural areas, which can also encourage better understanding and adoption of the service.

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