The Next Wave: Rethinking what banks are for
- The collapse of Credit Suisse highlights the failures of global banking systems.
- African banking is still influenced by colonial-era models despite advancements in fintech.
- The structure of African banking is caught between cautious licensed banks and fast-moving fintechs.
The current banking model in Africa is inadequate for fostering sustainable economic growth and innovation. A shift towards narrow banking could provide a more stable financial environment, but it also raises concerns about access to credit and the potential exclusion of certain demographics. A critical examination of banking roles is necessary to ensure that the financial system supports rather than hinders economic development.
