Top 7 countries where phones replace banks
Mobile phones have evolved far beyond their original function in today's rapidly digitising world. These devices now serve as their primary connection to financial services for millions, especially across parts of Africa and Southeast Asia.
Recent visual from World Visualized reveals that Kenya tops the global list, with 72% of adults using mobile phones as a substitute for traditional banks.
Top countries where phones replace banks (% of Adults):
- Kenya – 72%
- Ghana – 58%
- Nigeria – 45%
- Philippines – 41%
- South Africa – 39%
- Uganda – 38%
- Tanzania – 37%
Why is mobile banking thriving in these countries?
Limited access to traditional banks
In many of these regions, especially rural areas, access to brick-and-mortar bank branches is limited. In countries like Kenya, where vast populations are underserved by traditional financial institutions, mobile money fills a crucial gap.
The success of M-Pesa
Kenya’s leadership in mobile banking can largely be credited to M-Pesa, launched in 2007. This mobile money service revolutionised how people send, receive, and store money, without needing a bank account. Today, more than 50 million users across Africa rely on M-Pesa for daily transactions.
Lower barriers to entry
Setting up a mobile money account is far easier and quicker than opening a bank account, especially for those lacking formal identification or proof of address, common hurdles in many developing economies.
Growing smartphone penetration
Mobile and smartphone adoption has soared across Africa and Asia. According to the GSMA Mobile Economy Report, Sub-Saharan Africa alone had over 495 million mobile subscribers as of 2023.
Government and regulatory support
Governments and central banks in countries like Ghana and Nigeria have encouraged financial inclusion policies, including the promotion of mobile money agents and simplified know-your-customer (KYC) procedures.
Mobile banking in the Philippines and beyond
The Philippines has also seen significant mobile financial growth, driven by services like GCash and PayMaya. With millions of Filipinos working overseas, remittances sent through mobile apps have become essential to the national economy.
