WHY TRUST IS THE BIGGEST FINTECH PROBLEM IN AFRICA

‎Over the years, the fintech ecosystem has grown rapidly across Africa. The transformation has been remarkable from mobile wallets and digital banks to savings and investment platforms, digital lending, and stablecoins financial technology is reshaping how millions of Africans transact, save, and invest.

‎‎Yet, beneath these impressive growth numbers lies hesitation, doubt, and caution. Trust , or the lack of it , remains the biggest obstacle preventing fintech from reaching its full potential across the continent.

‎Why is trust the biggest fintech problem in Africa? And what does it mean for the future of digital finance on the continent? ‎Let’s dive in.

‎Fast Growth, Slow Trust

‎ One of the greatest technological advancements that has soared in Africa is fintech. Digital transactions have gained more attention compared to many other technological developments on the continent. Despite the fintech boom, nearly half of adults in Sub-Saharan Africa still do not hold any kind of bank account, including mobile money or digital accounts. In Nigeria, a significant number of unbanked adults cite lack of trust as a key reason for avoiding financial accounts, often coupled with concerns about fees, security, and the safety of keeping money digitally.

‎ ‎We often see people, especially from the older generation, being skeptical about online transactions. Some will say, “How can I keep my money in a place that has no physical centre where complaints can be lodged?” Others ask, “How can I be sure the online bank won’t just wake up one day and pack my money away?”

Their fear is valid because there have been cases that keep feeding these insecurities.

‎

‎Over the years, we’ve seen stories of frozen accounts with no clear explanation, delayed reversals after failed transactions, and customer support that takes days sometimes weeks to respond. For someone who depends on that money for daily survival, that delay is not just inconvenient, it is frightening.

‎There have also been increasing reports of online fraud, phishing links, and scam messages that look almost identical to official bank communication. When people hear that someone close to them lost money through a digital platform, it reinforces the belief that “cash is safer.” Even among those who use fintech apps, many do not fully trust them. Some transfer money in and immediately withdraw it in cash. Others avoid keeping large balances in their wallets. It’s like they are testing the waters but refusing to dive in completely.

‎ ‎This is where the real issue lies. The growth numbers look impressive. Downloads are increasing. New fintech startups are launching every year. But confidence is not growing at the same pace.

‎ ‎Fintech in Africa is scaling fast, but trust is lagging behind. And until that gap is closed, the industry will keep expanding on the surface while hesitation continues underneath

‎

‎ ‎When Money Is Digital, Trust Becomes Everything

‎ ‎If fintech is growing fast but trust is growing slowly, then we need to understand why. ‎Money is a very sensitive thing. Almost everything we do revolves around it. Our survival, our comfort, our plans for the future all tied to money. So the moment anything threatens its safety, people naturally become defensive.

‎ ‎Fintech is different from other tech sectors. It is not just about convenience or entertainment. It holds something much deeper. It handles people’s savings, their salaries, their business income, and sometimes their entire livelihood. Even small breaches, technical glitches, hidden fees, or frozen accounts can permanently damage the trust people place in a platform.

‎ ‎The real key is simple but powerful do not break the trust of users. Because when it comes to money, one mistake can feel like betrayal. ‎And unlike social media apps or streaming platforms, people don’t “try again later” when money is involved. If someone loses funds or experiences a failed transaction without clear communication, that memory stays. They tell friends. They warn family. Word spreads quickly.

‎ ‎This is why trust in fintech is heavier than trust in other industries. A delivery app can arrive late and still be used tomorrow. But a digital wallet that delays a transaction at a critical moment? That damage is harder to repair. ‎For many Africans, especially those who are just getting comfortable with digital finance, every transaction is still a test. They are asking silently: “Can I really rely on this?” . ‎Until that question is answered consistently with positive experiences, growth will always move ahead of confidence.

‎And that is why trust is not just important in African fintech , it is everything.

‎ ‎Fraud, Poor Transparency, and the Real Cost of Distrust

‎The insecurities people feel stem from the visible disadvantages of fintech. There have been numerous cases of cybercrime. Online scams that go unresolved. Suspicious links. Fake customer care numbers. Phishing messages that look almost identical to official bank alerts.

‎ ‎Now imagine a man in his late thirties, trying to build a stable life for himself. He considers opening an online bank account because it seems convenient and modern. But then he remembers his neighbor who got scammed just a few weeks ago. He starts weighing everything carefully. At the end of the day, he asks himself, “Should I really risk my life savings on something digital?” That hesitation is real.

Sometimes, the problem isn’t even fraud. Some fintech platforms place charges on transactions that users do not fully understand. At the end of the day, the deductions don’t make sense. Small fees here and there. Service charges that were not clearly explained. It begins to feel unfair. And when money feels unfair, trust begins to fade.

‎

‎Making complaints on some fintech platforms can also be one of the most frustrating experiences. Imagine losing money due to a scam, a disrupted payment, or a delayed transfer. The person is already in panic. The first few minutes are tense. They want urgent answers. Immediate solutions. Reassurance that their money is safe.

‎But instead, they are met with automated responses. Delayed replies. Or customer service agents who cannot give clear explanations. That moment when someone feels helpless while their money is hanging in uncertainty can permanently damage trust. And it doesn’t end there.

‎ People talk. They share experiences with friends, family, and colleagues. One bad story spreads faster than ten good ones. Before long, doubt grows in the community. Even those who have never experienced a problem start to question the safety of digital finance.

‎‎This is the high cost of distrust. It doesn’t just affect one user. It slows down adoption. It makes people withdraw their money immediately after receiving it. It pushes some back to cash entirely. Fintech may promise speed and convenience, but if users constantly feel anxious, confused, or unheard, growth will always be fragile.

‎

‎Building Trust in a Low-Trust Environment

‎ ‎The cases of distrust we’ve discussed are not baseless. The fears people have are not imagined. The reasons have been clearly stated. So what is the best way to solve these problems?

‎ ‎It starts with examining the structural challenges and intentionally building trust from the ground up. Fintech companies must go beyond technology to win credibility. Technology alone is not enough.

‎ ‎In a continent where many people are already cautious about financial systems, fintechs cannot just focus on innovation and speed. They must focus on transparency. Clear fee structures. Simple explanations. Honest communication when things go wrong. Trust grows when users understand what is happening with their money.

‎It also grows when platforms take responsibility. If there is a glitch, say it clearly. If there is a delay, explain it properly. Silence is what fuels suspicion.

‎ Strong customer support is not a luxury it is a necessity. When people know they can speak to a real human being during a crisis, their confidence increases. Even if problems occur, how they are handled determines whether trust is rebuilt or completely destroyed. Regulation also plays a role. Clear policies, visible compliance, and proper consumer protection laws reassure users that they are not alone if something goes wrong. ‎ ‎Education matters too. Many people fear what they do not fully understand. The more fintech companies educate users about security, fraud prevention, and how digital systems work, the less intimidating digital finance becomes.

‎ ‎Building trust in a low-trust environment takes time. It cannot be rushed. It requires consistency. It requires honesty. It requires platforms proving, over and over again, that users’ money is safe. ‎Because at the end of the day, fintech in Africa does not just need more downloads or more funding.

‎ ‎It needs belief.

‎ ‎And belief is built on trust.

‎

‎‎Trust Is the Real Infrastructure of Africa’s Fintech Future

‎ ‎Innovation, funding, and expansion mean little without trust. Trust is the basis of everything. Once it is broken, it is very difficult to regain especially when it comes to money. Sustainable fintech growth in Africa will depend not just on better apps, but on stronger protection, accountability, transparency, and user confidence.

‎ ‎Fintech can continue to attract investors. New startups can keep launching. Transaction volumes can keep rising. But if users still feel anxious every time they click “send,” then something is missing.

‎Throughout this conversation about fintech in Africa, one thing has been clear: the growth is visible, the innovation is impressive, but the confidence is still fragile. ‎People want convenience, yes. They want speed. They want digital solutions that make life easier. But more than anything, they want assurance. They want to know their money is safe. They want to know someone will respond if something goes wrong. They want fairness. They want clarity.

‎ Trust is not built through advertising campaigns or flashy app designs. It is built through consistent experience. Through doing the right thing repeatedly. Through handling crises properly. Through being transparent even when mistakes happen.

‎‎If fintech companies can focus as much on protecting trust as they do on scaling technology, the industry will not just grow it will mature. Because in the end, the real backbone of Africa’s fintech future is not infrastructure, not code, not funding.

‎ ‎It is trust.

‎ ‎And until trust grows as fast as fintech itself, the continent’s digital finance revolution will always feel incomplete.

‎ At Techdom Africa, we believe the future of African fintech will not be determined by how fast apps are launched or how much funding is raised, but by how deeply trust is built and protected.

‎ ‎The stories, the fears, the hesitation they all point to one simple truth. Africa’s fintech sector is not struggling because people reject innovation. It is struggling because many are still unsure if they can completely rely on digital systems with their hard-earned money.

‎Innovation should not stop at sleek interfaces and faster transfers. It should go further into transparency, accountability, honest communication, and real customer support. It should reflect the realities of everyday Africans: the trader trying to secure daily earnings, the small business owner managing tight cash flow, the young professional saving for stability.

‎Trust grows when people feel heard. It grows when platforms respond quickly during crises. It grows when fees are clear and security is visible. And once that trust is broken, especially where money is involved, rebuilding it takes time and consistency. ‎Africa does not lack ideas. It does not lack innovation. What it needs is sustainable confidence in the systems being built.

‎Because in the end, fintech is not just about technology. It is about people. And people will only fully embrace what they trust.

‎So the real question remains:

‎

‎Will Africa’s fintech industry continue to chase rapid growth alone, or will it intentionally build the trust that makes that growth sustainable?

‎We’d love to hear your thoughts. Share them in the comments.