Digital financial experts are warning that the future of financial technology (fintech) may depend less on technological advancement and more on whether users feel safe enough to trust it.
The caution comes amid growing scrutiny of how fraud, data privacy, and digital safety are shaping confidence in financial technology systems.
A new report by Visa examined these dynamics specifically through the lens of women-led small and micro businesses, exploring how security concerns are influencing their engagement with digital financial services.
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The findings suggest that while Africa has made progress in expanding financial access through mobile money and digital payments, many users, particularly women entrepreneurs, still hesitate to fully embrace digital finance because they do not feel adequately protected.
"Trust is foundational to the digital economy, that's why we are supporting evidence based, practical guidance that helps providers build transparent, user-centred experiences," said Panos Loukos, the Director of Financial Inclusion at Groupe Spéciale Mobile Association (GSMA).
According to the report, only 11 per cent of consumers fully understand how their data is used, while 85 per cent worry about unauthorised access to their personal information.
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At the same time, many women entrepreneurs continue limiting their use of digital financial services to basic person-to-person transfers, avoiding products such as digital credit, savings tools, or business analytics because of concerns over privacy and security.
The report argues that privacy and security are no longer merely technical or compliance issues. Instead, they have become central trust drivers that influence whether users continue engaging with digital finance systems at all.
Visa Country Manager for East Africa Victor Makere said that if the element of trust is broken, then the service is actually broken.
"Once trust is breached it becomes very difficult to bring it back. Fraud itself is also evolving rapidly, shifting from traditional cyberattacks targeting systems to more sophisticated forms of social engineering that exploit human behaviour," he said.
He described scenarios where scammers manipulate users emotionally through fake emergency requests or deceptive messages designed to trick people into sending money.
"So now it is no longer only about securing credentials or platforms. If I allow too much personal information to become available during transactions, that can also expose me to manipulation."
Transparency is key
The report similarly warns that concerns around data privacy and transparency are increasingly affecting how users interact with digital financial platforms.
More than 79 per cent of consumers surveyed said transparent communication about data use is a key factor in deciding whether to continue sharing digital information with providers.
Yet many platforms still rely on long and complex terms and conditions that users struggle to understand.
"Research found that many women entrepreneurs perceive fintech systems as opaque, difficult to navigate, or designed around assumptions that do not reflect their realities, especially in rural or informal economies," said Loukos.
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"Instead, products are often built for a default user assumed to have private smartphone access, strong digital literacy, and a clear understanding of financial and legal systems."
Makere said financial technology providers must now focus on making systems simpler, more intuitive, and easier for ordinary users to navigate, with no need to understand all the technical details behind the system.
"Simplifying the process is one of the easiest ways of making sure financial education becomes effective," he said.
The report calls on fintech companies to adopt privacy by design principles that place user safety, transparency, and control at the centre of product development.
