23 C
Kenya
Thursday, September 24, 2020

Banking Sector urged to go digital post Covid-19

Must Read

Youth develops insurance app for agents, vehicle owners in Kenya

Insurance App Kenya: Having worked in the motor insurance industry with a leading underwriter for public service vehicles (PSVs)...

Schneider launches EcoStruxure: A wall mount micro data centre

EcoStruxure Data Center Solution: Schneider Electric, the leader in digital transformation of energy management and automation, announced it has...

Moi University assembles, unveils own laptops, servers

Moi University Digital Assembly: Moi University in partnership with jp.ik, a portuguese Information and Communication Technologies company, has unveiled...

Banking Sector urged to go digital to build resilience and sustainable growth post Covid-19

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 banking sector goes digital.” Liao said.

Airlines Given New Guidelines to Combat Covid-19 Virus

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.

Liao Yong, President Business Dept. SAR - Bizna
Liao Yong, President Business Dept. SAR – Bizna

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 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.

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.

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.

Huawei gears up for humanity’s next technological revolution

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.

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 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 think global and act local 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 adapt disruptive technologies.”

Leave a Reply

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

188,413FansLike
11,005FollowersFollow
193FollowersFollow
292SubscribersSubscribe
WhatsApp
Telegram

Latest News

Jumia partners with leading brands Samsung, Bruhm, Xiaomi, Nivea to make quality products more affordable

Jumia partners with leading brands Samsung, Bruhm, Xiaomi, Nivea & others in new campaign to make quality products more...

Huawei Kenya kicks-off this year’s Seeds for the Future program virtually

Huawei Kenya kicks-off this year’s Seeds for the Future program virtually; 60 students nationwide to gain latest technology and leadership knowledge Huawei Kenya kicked off...

Worst apps that drain battery life and how to improve usage

Most android batteries get emptied within two hours after a charge. And sometimes you get stuck in the evening when you are hailing an...

Social Online Games Market in Kenya 2014-2023

Kenya’s gaming industry has seen significant growth in the last ten years, and social games are among the most popular online games. Social games...

More Articles Like This