Nigeria's biggest banks, First Bank and GTBank, are shifting their focus towards technology, hiring software engineers, DevOps specialists, and product designers to stay competitive in the digital banking landscape. This hiring push is a response to the growing demand for digital banking services, with 70% of Nigerian customers now using banking apps weekly, according to KPMG.

The banks are not only competing with each other but also with fintechs, which are poaching key hires from traditional banks. Moniepoint, for instance, has recruited key personnel from Access Bank and Stanbic IBTC as it expands its retail business. The talent war is heating up, with banks offering stability and high salaries, while fintechs counter with remote work, stock options, and more flexibility.

This hiring spree is not just about competition; it's about survival. As more Nigerians ditch physical branches for digital banking, banks are forced to double down on technology. The industry is set to spend at least ₦82 billion on core banking software, and banks will have to do more than just raise salaries to stay competitive.

In related news, South Africa's big banks are turning away from ATMs, with four major commercial banks – Absa, FNB, Nedbank, and Standard Bank – reducing the number of their ATMs across the country. This decline is not only about convenience but also about cost, as ATMs are expensive to operate and maintain. Mobile banking apps, contactless payments, and mobile wallets are now the primary ways people access their money digitally.

Meanwhile, MTN Nigeria's fintech arm, MoMo PSB, is undergoing a strategic shift after a 46% drop in active wallets in 2024. The company is diversifying its offerings by applying for Payment Service Solutions Provider (PSSP) and Payment Terminal Service Provider (PTSP) licenses, enabling it to expand into merchant services and payment gateways.

Airtel Africa has also introduced the Airtel Money GlobalPay Card, a virtual payment solution backed by Mastercard, enabling its 150 million users across 14 African countries to make international online transactions with merchants like Netflix, Amazon, and AliExpress. This move puts Airtel Money in direct competition with Safaricom's M-PESA GlobalPay, which launched its Visa-supported virtual card in 2022.

These developments highlight the rapid transformation of the banking and fintech industries in Africa, driven by the growing demand for digital payments and financial inclusion. As the competition for tech talent intensifies, banks and fintechs will have to innovate and adapt to stay ahead in the game.