The rise of fintech companies is forcing African banks to rethink traditional banking models, as digital rivals offer faster, more flexible ways to serve customers, Bloomberg reported.

Rand Merchant Bank, part of Africa’s largest banking group by market capitalisation, is exploring partnerships with fintech firms to modernise its transactional services. “It is really about focusing on value-added services, and what your client needs,” said chief executive Emrie Brown at the Bloomberg Africa Business Summit in Johannesburg on Monday.

Brown pointed to the recent listing of AI-powered fintech Optasia Group Ltd. on the Johannesburg Stock Exchange as a marker of the sector’s rapid growth. She said the agility of fintechs allows banks to address operational challenges more quickly than developing solutions internally.

According to a World Economic Forum report, fintechs are widening financial access for groups traditionally underserved by banks, including micro, small and medium enterprises and low-income populations.