Population
46M
Online population
32M
Currency
DZD
Population - 46M
At the start of 2023, 75% of Algeria’s population lived in urban centres, while 25% lived in rural areas.
Internet penetration - 70.9%
There were 32M internet users in Algeria at the start of 2023
FinTech in Algeria is evolving, with recent regulatory changes signaling a significant shift towards embracing digital financial services. In June 2023, Algeria introduced Law №23–09, allowing for the operations of FinTech, digital banks, and payment service providers for the first time. This law outlines that traditional banking operations are reserved for banks, but payment services can now be offered by approved providers, broadening the scope for non-bank entities to engage in the financial sector. This development is seen as a critical step towards fostering innovation and competition in Algeria's financial services industry.
Despite these advances, the FinTech ecosystem in Algeria has been described as underwhelming, especially in comparison to other countries in the MENA region. A report from 2021 indicated that only a small percentage of the adult population used digital payments, highlighting challenges in financial inclusion and the adoption of digital financial services. The report pointed out that Algeria's financial and banking sector faces issues like outdated technological infrastructure and a lack of innovative digital banking services, which have hindered the development of a robust FinTech ecosystem.
The situation is improving but still Algeria is lagging far behind Morocco and Tunisia. Both countries are themselves far behind the top countries in Africa which are Egypt, Nigeria and South Africa. In a study published in August 2022, McKinsey identified the 11 key African Markets (Nigeria, Egypt, South Africa, Morocco, Ghana, Kenya, Tanzania, Uganda, Côte d’Ivoire, Cameroon and Senegal) representing 70% of Africa’s GDP and 50% of population.
The Algerian banking sector [is made up](https://www.elmoudjahid.dz/fr/economie/finances-vingt-banques-et-8-etablissements-financiers-en-activite-en-algerie-4726#:~:text=La place bancaire compte actuellement,journal officiel (N 5).) of the Bank of Algeria, 20 commercial banks and 9 financial establishments, 5 representative offices of large international banks, a stock exchange, a clearing company responsible for depository functions.