Headlines across the globe often echo a concerning narrative: artificial intelligence (AI) is poised to displace financial advisors. A report by Deloitte suggests that by 2027, digital platforms might dominate advice for retail investors, with an adoption rate expected to surge to 80% by 2028. However, this perspective overlooks a crucial aspect of the financial landscape in Africa. For many in this region, such worries feel distant or even irrelevant, as a significant portion of the population has never had access to professional financial advice. In fact, only 27% of adults in Sub-Saharan Africa possess basic financial literacy. Here, the challenge isn’t solely about replacing advisors but about leveraging technology to make financial guidance accessible to all.
The Access Gap
The statistics reveal a stark reality: according to the World Bank, only 49% of adults in Sub-Saharan Africa had a bank account in 2022. A recent survey in Nigeria, conducted by EFInA, highlights that 64% of adults are financially included. However, even among those who are banked, the interaction with professional advisors remains minimal. Consequently, millions navigate financial decisions without data-driven strategies, relying instead on word-of-mouth, informal lending networks, and the lessons learned from trial and error. This context underlines the critical role technology can play in bridging the financial advice gap.
What Technology Delivers
Fintech companies across Africa are pioneering efforts to address these challenges by offering digital solutions that cater to previously underserved populations. Platforms like PiggyVest and Cowrywise have created formal saving mechanisms, enabling millions to save formally for the first time. For instance, PiggyVest boasts over 7 million users who save an average of ₦25,000 every second as of 2024, while Cowrywise facilitates saving starting with as little as ₦1,000.
On the investment front, platforms like Bamboo and Risevest have democratized access to global markets. Bamboo currently serves over 500,000 users—most of whom are newcomers to stock trading—whereas Risevest has successfully processed US$42 million in investor payouts. Infrastructure innovators like TymeBank in South Africa cater to 10 million customers, and M-Pesa, run by Safaricom, has handled an astounding 37.15 billion transactions worth $296.8 billion in 2024, employing machine learning tools to thwart fraud.
These services offer significant advantages: they can scale rapidly—reaching millions at a lower cost than traditional advisors—and they are less likely to experience conflicts of interest. Unlike human advisors who may promote products with commission incentives, algorithms can, in theory, provide unbiased recommendations. For the first time, individuals like budding entrepreneurs or farmers can access structured financial guidance directly from their smartphones.
The Question of Trust
However, scale doesn’t equate to trust. Many Africans harbor skepticism towards financial institutions. Instances of hidden fees, subpar customer service, and inconsistent regulations have fostered caution. Gaining the trust of individuals hesitant to rely on banks and financial institutions to instead trust algorithms is no simple feat. Trust, fundamentally, is the currency of finance across Africa. Traditional savings methods, such as ajo or esusu (rotational savings groups), derive their strength not from technology but from relationships, accountability, and shared risk. Therefore, new technology must recognize that success hinges on more than just code; it will require transparency, educational initiatives, and cultural sensitivity.
According to an analysis by McKinsey, African fintechs are making noteworthy progress, with estimated revenues ranging between $4–6 billion in 2020 and penetration levels between 3–5 percent (excluding South Africa). However, increasing these numbers hinges on prioritizing trust-building initiatives among fintechs and regulators; without such efforts, technological advancement risks establishing more barriers than pathways.
The Human Advantage
Despite the progress of digital platforms, they cannot capture the emotional and cultural nuances that inform financial decisions. An application might propose the most statistically favorable investment, yet it lacks the capacity to gauge the anxieties of a trader in Nigeria concerned about capital loss or a family in Senegal prioritizing school fees over stock investments. Herein lies the value that human advisors bring to the table: empathy, assurance, and guidance during uncertain times. In a landscape marked by volatility and shifting policies, this human element cannot be replicated through algorithms.
Policy: Catching Up with Innovation
Regulatory bodies in Africa have shown a capacity for rapid adaptation, particularly regarding digital lending solutions in Nigeria, as evidenced by initiatives from the Federal Competition and Consumer Protection Commission (FCCPC). Nonetheless, robo-advisors and digital investment platforms often operate in ambiguous regulatory environments. Without clear policies, there is a risk of creating a two-tiered system that distinguishes low-cost automated advice for the financially underserved from personalized, high-touch services reserved for the affluent. To prevent technology from amplifying existing inequalities, it’s essential to establish transparent frameworks that ensure fairness, mitigate biases, and promote accountability.
What Comes Next
Looking ahead, the evolution of financial advice in Africa will not revolve around the conflict of man versus machine. Instead, it will embody a collaboration where each can leverage their strengths. Technology will manage scalability, automation, and data-informed insights, while human advisors will contribute empathy, trust, and cultural know-how. For this dual approach to flourish, regulators must set the appropriate boundaries to ensure responsible cohabitation between technology and traditional financial services.
While AI may supplant advisors in various regions, the narrative in Africa diverges substantially: millions are on the brink of accessing financial guidance previously deemed unreachable. The challenge for fintechs and policymakers lies in guaranteeing that this newfound access also embodies principles of fairness and trust. Should they succeed, rather than displacing advisory roles, technology will democratize access to financial advice, empowering everyone—not just the privileged few.
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Yomi Ogunleye is the co-founder and CTO of HerVest, an inclusive fintech. He possesses over 13 years of experience in the realms of product and engineering within financial and technology sectors.
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