Saifaddin Galal
Research Expert North Africa
Banking industry in North Africa - statistics & facts
North Africa has a relatively developed banking industry and hosts some of the largest financial markets on the African continent. In 2021, the 10 largest banks in Africa by assets were concentrated in South Africa, Egypt, and Morocco. The National Bank of Egypt and Morocco’s Attijariwafa Bank were the leading institutions in North Africa, with total assets of around 125 billion and 64 billion U.S. dollars, respectively. Having the strongest banking industry in the region, Egypt also recorded the highest bank return on assets (ROA) in North Africa in 2020, while Tunisian and Libyan banks registered the lowest returns.
A largely unbanked population
Algeria and Tunisia had the highest bank account penetration in North Africa in 2020. However, with rates of 52 percent and 43 percent, respectively, they ranked considerably below the global average. Owning a bank account and accessing financial services remains relatively uncommon in the region. In 2021, Morocco and Egypt had one of the highest shares of population without access to bank services worldwide, with an unbanked rate of roughly 71 percent and 67 percent, respectively. Bank account penetration and payment card ownership are generally higher in urban areas and among the male population. Additionally, financial inclusion is also linked to the presence and accessibility of financial services and infrastructure. The number of commercial bank branches per 100,000 adults differs significantly across North African countries, ranging from around 24 in Morocco to only five in Algeria. The same applies to the presence of automated teller machines (ATMs), in which Tunisia leads the ranking.Online banking potential
In recent years, the North African population started adopting online financial services, mainly to perform digital payments and investments. The main drivers of the increasing online banking usage are the diffusion of internet technologies and digital devices and the abovementioned low penetration rate of formal banking services. In fact, as the share of people owning a bank account in North Africa is one of the lowest worldwide, online banks and fintech providers have the opportunity to fill the gap and offer affordable banking services. Despite the gradual digital banking adoption, the road is still long. A survey conducted in 2022 showed that approximately four percent of adults in Tunisia used online banking services. Morocco was even behind, with an online banking usage rate of 1.5 percent.
