African banks could improve digital banking services and introduce new financial products without necessarily replacing their existing payment infrastructure, according to discussions at the BPC Client Conference 2026 in Cape Town, South Africa.
The conference, held on Wednesday, 21 October, brought together banking executives, payment technology specialists and cybersecurity professionals to examine how financial institutions can get more value from the systems they already operate.
Jonathan Bautista, Asia-Pacific regional solution director at Swiss payment technology company BPC, argued that modernising banking operations does not always require an expensive overhaul of existing platforms. Instead, banks can identify unused capabilities within their current systems and adapt them to meet changing customer expectations.
Speaking to TechCabal on the sidelines of the conference, Bautista explained that banks should approach modernisation by considering their business priorities and the opportunities available to them.
For African financial institutions, the approach could provide a practical way to improve customer experiences, accelerate product development and expand digital services while controlling technology costs.
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African Banks Face Pressure to Improve Digital Services
The demand for faster, more convenient and secure financial services continues to reshape banking across Africa. Customers increasingly expect to transfer money, pay for goods and manage their finances through digital channels without unnecessary delays or complications.
Banks have responded by investing in mobile applications, electronic payment platforms, core banking systems and other digital infrastructure. However, owning modern technology does not automatically mean that every available feature is being used effectively.
According to figures cited in the original report, eight major Nigerian banks generated ₦514.82 billion in electronic payment revenue during the first nine months of 2025. Meanwhile, six banks spent ₦268.7 billion on information technology infrastructure in 2024.
These figures illustrate the scale of financial activity surrounding digital banking in Nigeria. They also raise an important question about how effectively institutions are converting their technology investments into better services and additional revenue.
Rather than immediately purchasing new platforms, banks could examine whether their existing systems support capabilities that have not been fully deployed. Such an approach could reduce implementation costs and limit the disruption associated with replacing critical banking infrastructure.
The AfricaNenda Foundation’s research on instant payment systems similarly highlights the importance of developing payment systems that are inclusive, interconnected and capable of supporting wider participation in the digital economy.
Existing Payment Systems Could Support New Products and Better Security
Payment technology performs several functions beyond approving or rejecting transactions. Behind each payment, systems can evaluate spending limits, identify unusual behaviour, apply risk controls and enforce rules designed for particular customers or transactions.
Bautista said banks could use these capabilities to develop specialised services for businesses and other customer groups. For example, existing payment platforms may support corporate cards, supplier payments and procurement cards with spending controls tailored to an organisation’s requirements.
Such services could help financial institutions serve business customers more effectively without building every product from scratch.
Another important opportunity lies in fraud detection. As digital transactions increase, banks must identify suspicious activity while avoiding unnecessary declines of legitimate payments.
The Nasdaq Verafin 2026 Global Financial Crime Report was cited in the original coverage in connection with growing losses from cyber-enabled scams and the increasing use of artificial intelligence by criminals.
Artificial intelligence and behavioural analytics can help financial institutions assess whether a transaction fits a customer’s normal activity. Unusual spending patterns, unexpected transaction locations or other warning signs can prompt additional checks before a payment is completed.
However, these tools cannot eliminate every form of fraud. Banks must continue investing in effective security controls, staff training and customer awareness while ensuring that automated decisions do not unnecessarily prevent genuine transactions.
Back Story: Africa’s Push for More Connected Digital Payments
Africa’s digital payments industry has expanded significantly, with instant transfers, mobile money and fintech platforms changing how individuals and businesses move funds. However, differences between national payment systems and limited interoperability continue to restrict the full benefits of digital finance.
The AfricaNenda Foundation’s 2026 policy paper notes that establishing payment infrastructure is only one part of the process. Participation, affordability and practical access are also essential to ensuring that these systems serve a wider population.
For Nigerian banks, this presents an opportunity to build on existing electronic payment networks while improving connections with fintech companies and other financial service providers. Better integration could help customers complete transactions more conveniently and support businesses that depend on reliable digital payments.
Ultimately, the challenge for African banks is not simply to acquire more technology. It is to ensure that their existing systems deliver measurable value through improved services, stronger security and faster innovation. By making smarter use of their current infrastructure, financial institutions could strengthen their competitiveness without committing to unnecessary and costly replacements.
Also Read: CBN Moves to Keep Nigerian Banks and Fintech Payment Data Inside Nigeria
