Nearly nine in 10 banks and fintech companies in Africa say digital fraud increased over the past year, according to a new Deloitte survey that also found a worrying gap between those incidents and how firms rate their own cyber risk.
Deloitte released the sixth edition of its African Financial Industry Barometer at the Africa Financial Summit (AFIS) 2026 in Luanda, Angola. The survey found that 88 percent of banks and fintechs reported an increase in digital fraud, compared with an average of 66 percent across all financial institutions surveyed.
Fraud is rising, but perceived exposure is falling
The report points to a mismatch. Only 47 percent of respondents rated their exposure to cyber risk as high, down from 58 percent in 2025, even as fraud grew.
José Barata, managing partner and banking sector lead at Deloitte, described the gap as a concern that needs closer attention as financial services become more digital. He said cybersecurity remains institutions’ top worry, even though fewer now describe their own exposure as high.
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Concern about cybersecurity rose sharply among the firms most affected. About 79 percent of banks named it a major concern, up 19 percentage points from 2025. Among fintechs, the share rose 29 points to 63 percent. Across the whole industry, 51 percent of respondents ranked it as a major concern, the highest of any risk in the survey.
Geopolitics and skills shortages add pressure
Other risks are also growing. Some 48 percent of respondents flagged geopolitical uncertainty as a major concern, up six points, while 41 percent cited shortages of skilled staff, up 11 points. Among groups operating in several countries, 63 percent named geopolitical risk, compared with 41 percent last year.
AI seen as key to fraud detection
Institutions are turning to artificial intelligence to respond. In the survey, 85 percent of respondents expect AI to have a major impact on fraud detection, the top result among seven use cases. Process optimisation followed at 84 percent, and predictive analytics and business intelligence at 74 percent. Fintechs and microfinance institutions were unanimous that fraud detection is where AI will matter most.
Putting AI to work remains difficult. Data quality and cybersecurity and privacy were each named as a major barrier by 56 percent of respondents, and 44 percent cited skills shortages. Barata said the debate has moved from AI’s potential to how it can be deployed efficiently and responsibly.
Regulators urged to focus on security and identity
The survey also shows strong demand for regulatory action. More than 90 percent of institutions said cybersecurity, digital identity, illicit financial flows and foreign exchange regulation need regulatory attention. Cybersecurity and digital identity each drew 97 percent, followed by illicit financial flows at 92 percent and foreign exchange rules at 90 percent.
The share of institutions rating the prevention of illicit financial flows as critical jumped from 31 percent to 56 percent, with the biggest increase among banks and local financial institutions. Deloitte said the findings suggest firms want more effective rules, not fewer.
Confidence holds steady
Overall confidence among African financial institutions stayed at eight out of 10, unchanged from 2025. Multi-market groups scored 8.53, and capital markets players had the highest score by business line at 8.57. Banks scored 8.00 and fintechs 8.25. Insurers fell to 7.45 from 8.35.
