Financial Inclusion Reimagined: Building on Africa’s Cultural Foundations
For centuries, African communities have relied on informal savings groups like tontines to build financial security. But what if we could modernize these systems without losing the trust and cultural roots that make them work? That’s exactly what’s happening across the continent!
After exploring how messaging platforms are transforming financial services across Africa in my previous article, I want to dive into another critical dimension that is critical for Africa’s future: financial inclusion. My experiences of various model and initiatives on the subject has shown me that the most successful inclusion initiatives don’t import foreign models wholesale – they build upon existing cultural foundations while thoughtfully introducing new tools and technologies.
Revitalizing Traditional Systems for Modern Inclusion
One of the most fascinating innovations I’ve witnessed in West Africa is the modernization of the traditional “tontine” system. These community-based saving circles have operated for generations, creating financial discipline through social commitment. Rather than dismissing these systems as obstacles to formal inclusion, forward-thinking institutions have recognized their potential as onramps to broader financial participation.
In Senegal, Côte d’Ivoire, and throughout French West Africa, I’ve seen financial cooperatives successfully digitize tontines, preserving their community essence while fostering a stronger saving culture by embedding it within the local cultural framework. These hybrid approaches have successfully brought previously excluded populations into the financial ecosystem because they honor established practices while addressing practical limitations by broadening the access and the community on which tontine is based on. When members can transition from informal tontine participation to accessing formal credit through the same trusted community structure, the barriers to inclusion dramatically decrease.
Beyond Banking: Inclusion Through Relevant Services
Traditional financial inclusion efforts often fall short because they focus on pushing products rather than building trust. I have always been a believer of practice over theory to transmit knowledge, I’ve seen that true inclusion happens when people understand financial services through practical experience rather than theoretical explanations. Working with Sparkasse Stiftung, I’ve participated to training using simulation programs that transformed financial understanding from the ground up.
Christophe Bretagnolle
Digitalization Expert
With more than 20 years of experience, supporting financial institution with their digitalization projects and strategies, Christophe Bretagnolle is a recognized expert of the banking sector in developing countries, particularly in Africa. His wide knowledge of the solutions and requirements for financial institutions to navigate the evolving and shifting digital landscape give him a unique and critical view of the present and future of information technologies within the development finance sector.
These interactive workshops allowed participants to experience financial management tangibly – from household budgeting for clients to complex risk assessment for financial institution staff. By physically handling money, making decisions, and seeing immediate consequences in a compressed timeframe, participants-built confidence and trust in formal financial systems. This experiential approach created an “aha moment” that theoretical teaching rarely achieves, helping previously excluded populations see genuine value in financial services.
Similarly, in Ghana, I observed programs where rural communities engaged with financial services through gradual, trust-building steps. Rather than starting with formal account opening, these initiatives began with community savings groups that incorporated digital elements over time. By addressing immediate needs like secure storage of harvest proceeds or emergency funds for health crises, they demonstrated the practical benefits of financial inclusion. As trust developed through positive experiences, these communities naturally expanded their engagement with the broader financial ecosystem.
Speaking the Language of Trust
Perhaps the most fundamental lesson I’ve learned is that financial inclusion must literally speak the language of its audience. In Ghana’s rural areas, I’ve seen promising results from chatbot programs that deliver financial services in local languages like Twi and Dagbani. These programs connect with users through familiar messaging platforms, offering simplified account opening and basic transactions that respect both linguistic preferences and daily realities.
What makes these initiatives successful isn’t just translation – it’s cultural adaptation. When account management is explained using familiar agricultural metaphors for farming communities or market analogies for traders, the adoption increases dramatically. People don’t need to cross a cultural divide before they can even begin participating in the financial system.
The AI Opportunity: Personalized Inclusion at Scale
While these approaches are already showing impressive results, I believe we’re standing at the threshold of even more transformative possibilities. AI will be one of the main drivers in the years to come, not by replacing these culturally-grounded approaches, but by enhancing them.
Imagine personalized financial services that adapt not just to a person’s language but to their specific economic activities, cash flow patterns, and risk profile. AI can help deliver this level of customization at scale, making financial services relevant and accessible to millions who currently stand at the margins of the financial system.
The future of financial inclusion in Africa isn’t about forcing Western banking models into new markets. It’s about building bridges between traditional financial practices and modern financial tools, creating inclusive approaches that respect local realities while empowering people to participate in the broader economy. As financial service providers, our challenge is clear: account access alone isn’t enough. By developing culturally relevant financial services, we create meaningful relationships with previously excluded populations – building a foundation for mutual growth and prosperity.
Author: Christophe Bretagnolle
