Banking Sector Urged To Go Digital To Build Resilience And Sustainable Growth Post Covid-19

Must Read

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...
- Advertisement -

Bankers from Sub Saharan Africa and China who attended the Huawei Sub-Saharan Africa Financial Services Industry Online Summit 2020 agree that digitisation of the sector will give it resilience against the current Covid-19 pandemic and enable sustained growth in the post COVID era.

The pan-African conference themed “Accelerating Digital Transformation, Enable Business Growth Again” was attended by 1200 delegates from across banks, telco operators, fintech and ICT services companies.

Opening the event, Liao Yong, vice president of Huawei Southern Africa Region, said advances in ICT present unique opportunities for the banking sector, especially when almost 70% of the region’s population don’t have a bank account.

“All of these ICT advances will be critical enablers to a thriving banking sector in Sub Saharan Africa. As we can see, the merging of these two curves of ICT and banking services is powerful. But how much we can unleash the power, depends on how much and how soon the banking sector goes digital.” Liao said.

- Advertisement -

There has been a rapid uptake of mobile technologies in the region with strong economic growth in the past 2 decades. According to statistics by GSMA, 4G, mobile broadband technology, adoption will overtake 2G in 2023 and the total of unique subscribers in Sub Saharan Africa will reach 600 million by 2025, representing half the region’s population.

Speaking at the online event, Brett King, author of Bank 4.0, a New York-based mobile banking startup, said the behavioural changes that come with coronavirus further underpins the needs for digital transformation in the banking sector.

“The declining use of physical branches is likely for many customers to remain a permanent feature of their lives. The reality is this is likely to accelerate a multi-decade trend we’ve already seen towards digitisation. So when we look at the architecture of banking moving forward and the real elements that have been accelerated during the coronavirus period, you can see that that shift to digital is creating much more aligned, some digital experience. This basically brings us to a new model of banking…we moved to this low friction banking embedded in the world around us,” said King.

Read Also:  Q2 GDP Growth Slumps to 1.94%: But there is "Fire in Soweto"

In China, bucking the decline in Q1 GDP, the financial sector recorded a 6% year-on-year growth. Analysts attribute this growing to the sector’s years of unremitting efforts in digital transformation.

- Advertisement -

Chen Kunte, former Chief Information Officer of China Merchants Bank and current Chief Digital Transformation Officer of Global Financial Services in Huawei’s Enterprise Business Group said digitisation will give the banking sector the resilience it needs in the public health crisis. Banking everywhere can’t come true without leveraging cloud, AI and Big Data.

“We need to restructure banks’ ICT platforms from legacy architecture to cloud-based, open architecture by building AI-Powered and Data-Driven platforms to expand the way financial institutions engage and interact with their customers, and accommodate more innovative business models and service scenarios,” Chen said.

Banks from the region shared some case studies on digitisation in banking services in the region.

Lucille De Kock, Head of Data Analysis and Product Management at FNB, South Africa, introduced FNB’s fundamental shifts across all dimensions to transform the bank into a helpful, trusted and people-centric money manager leveraging digital and data platforms.

- Advertisement -
Read Also:  How COVID-19 will Increase Inequality in Emerging Markets and Developing Economies

According to Alex Siboe Wekunda, head of DFS, KCB, said 97% of all transactions are done digitally which lead to substantial growth during the pandemic. Luckily enough, we had invested well in our platform, so we’re able to handle the traffic that comes through this ecosystem. And Joshua Oigara, CEO and MD, KCB Group PLC, said KCB will continue to accelerate that investment beyond the just lending platform, which has been very successful.

Huawei works with over 1,000 financial institutions globally, including 6 of the world’s top 10 banks in the digital transformation voyage.

Liao concluded, “Our operations of over 20 years in Sub Saharan Africa enables us to think global and act locally by providing our clients in the region with tailored-made solutions to make digitisation process painless and smooth as if it is a tech company that happens to work in the financial sector rather than as a bank that tries to adopt disruptive technologies.”

- Advertisement -
Banking Sector Urged To Go Digital To Build Resilience And Sustainable Growth Post Covid-19 - Brand SpurBanking Sector Urged To Go Digital To Build Resilience And Sustainable Growth Post Covid-19 - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Banking Sector Urged To Go Digital To Build Resilience And Sustainable Growth Post Covid-19 - Brand SpurBanking Sector Urged To Go Digital To Build Resilience And Sustainable Growth Post Covid-19 - Brand Spur

Latest News

NSE Migrates 4 Companies from ASeM to Growth Board

The Nigerian Stock Exchange (NSE) is pleased to announce the migration of Chellarams Plc, Living Trust Mortgage Plc, McNichols...

Fidelity Bank’s MD/CEO Designate purchases 5 million shares

Fidelity Bank Nigeria Plc has announced that its Managing Director/CEO Designate, Mrs. Nneka Onyeali-Ikpe has increased her stake in the business via the purchase...

Chinese FMCG companies win 82 million new customers

Despite challenges due to the pandemic, 19 out of the top 22 FMCG companies in China grew their shopper base this year. The top 22...

Standard Chartered champions Safe Return to School initiatives for students

LAGOS: November 30, 2020 – Standard Chartered Bank (Nigeria) Limited recently launched the Safe Return to School initiative. The Safe Return to School Initiative (SRTSI) was...

Online shopping skyrockets amidst COVID-19 pandemic

New users, frequency and preference skyrocket 57% of recent online shoppers were new since the onset of COVID-19  Lagos, Tuesday 30 November 2020 - As...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Banking Sector Urged To Go Digital To Build Resilience And Sustainable Growth Post Covid-19 - Brand SpurBanking Sector Urged To Go Digital To Build Resilience And Sustainable Growth Post Covid-19 - Brand Spur