• About Us
  • Contact Us
  • Photo Gallery
  • Privacy Policy
  • Terms of Use
  • Citi TV
Wednesday, February 1, 2023
Citinewsroom - Comprehensive News in Ghana
  • Home
  • News
  • Business
  • Sports
  • Showbiz
  • Coronavirus
  • Infographics
  • Livestream
  • Videos
No Result
View All Result
Citinewsroom - Comprehensive News in Ghana
  • Home
  • News
  • Business
  • Sports
  • Showbiz
  • Coronavirus
  • Infographics
  • Livestream
  • Videos
No Result
View All Result
Citinewsroom - Comprehensive News in Ghana
No Result
View All Result

Absa Bank’s Ebo Richardson writes: Cashless economies – Fact or Fiction?

June 2, 2021
ShareShareShareShare

There is no doubt that Covid-19 has accelerated digital and technology adoption across the Continent, driving banks and other businesses to fast-track their digital transformation efforts and expedite creation of solid platforms for innovative solutions.  One obvious manifestation of this has been the growth of online transactions and ongoing embedment of 24/7 banking.  But the question remains: What lies ahead, as we approach what is expected to be a “better normal”?

Digital Banking in Africa

While cash is still predominantly used for payments across the African Continent, great strides have been made towards the realisation of the so-called “cashless society”.  Of course, Covid-19 has been a key catalyst, with lockdowns, health and safety protocols, and merchant / commercial restrictions significantly limiting physical interactions and thus reducing cash-based transactions.  The fact is, going cashless, or at least “cash-lite”, is possible and remains a likely future scenario, given the development and trends we are seeing.

Banks and other financial institutions, however, will need to provide incentives and demonstrate unparalleled convenience in order to encourage consumers to make the switch in a sustainable way.  Additionally, and perhaps more importantly, regulators will need to create the requisite policy frameworks that stimulate and support adoption, as well as safeguarding consumer interests.

Indeed, Rwanda is one of the African countries leading the charge, with a goal of being a cashless society by 2024.  Significantly, in alignment with this goal, the Rwandan government recently provided free meters to all taxi drivers, ensuring that only digital payments could be made.  Kenya is following suit, with some fees on mobile money transactions being waived during the pandemic, coupled with a surge in online shopping.  As a result, experts estimate that Kenya could become a cashless economy by 2033.

Ghana is also making important and progressive strides, driven by the government’s digitization agenda, which has seen the introduction of Mobile Money Interoperability (MMI), the launch of National Universal QR Code, and other payment systems projects in partnership with Banks, Telecos and Fintechs.  Just like Kenya, the waiver of some fees on mobile money transactions during the height of Covid-19 and the sustained incentives from some organisations, including Absa Bank, continues to encourage and promote digital payments.  In addition to higher daily transaction limits, Absa offers customers transfers from mobile money wallets to bank account at highly competitive rates ad-free contactless payments, which save customers time and hassle while assuring their safety and security.

Overall, sector players are acknowledging the benefits of digital payments, noting that they are more convenient and safer for customers and that they will inevitably reduce crime and fraud while promoting the inclusion of more people into formal financial services.  In addition to further increase in mobile and online transactions, indications are that we will see a notable shift to contactless payments, QR codes payments, and eventually even wearables.

Customers will want personalised digital journeys

Think of a personalised Netflix profile, but for banking!  Of course, personalised customer experiences in banking are far more complex as there are multiple factors and important regulations to consider; but they are entirely achievable.  Logging in should be a breeze and user interfaces should be intuitive and easy to navigate, complemented by specific product insights and recommendations.  Round the clock, expert support, whether it be live chat or a click-to-call option will be non-negotiables.  Consequently, banks will need to come to the fore with reliable, secure and integrated digital technology systems in order to meet ever-evolving customer expectations.

Furthermore, it is pivotal that financial institutions view technology as an essential enabler, and that artificial intelligence (AI) and machine learning (ML) are not only considered for internal processes, but also as an effective way to boost self-service options.  Chatbots are fast becoming the norm when it comes to automated client queries (such as Absa’s Abby on WhatsApp), while machine learning can deduce user intent and match digital products with specific needs.

Regulation and Resilience will be key

With new technology comes the requirement for appropriate regulation.  The EU’s General Data Protection Regulation (GDPR), for example, currently emphasises the ‘right to explanation’ if an AI algorithm deems a customer ineligible for a loan or financing.  Banks will need to understand legislative expectations around emerging innovations and be in a position to meet them.

While there is still some regulatory ambiguity in some African countries, overall, policymakers have made noteworthy progress in implementing customer-centric frameworks that promote governance, support tighter lending requirements, and encourage financial inclusion and innovations.  Further to this, the rise in cyber-risk exposures as a result of increased digitisation lends itself to an increased focus on building business resilience, as well as an increased need for specific cybersecurity legislation – particularly when it comes to data and privacy laws.  As this risk increases, policymakers are bound to take notice, with possible regional frameworks coming to the fore.

The banking sector as a whole is expected to be stable and healthy in order to kick-start economies and stimulate growth, especially post-pandemic.  To achieve this, banks will need to discard legacy infrastructure in favour of smarter, integrated and more resilient cloud-based platforms.  This will enable institutions to manage and access data quicker and bring products and solutions to market much faster.  Ultimately, digital banking should be viewed as a meaningful way to connect with customers across each stage of their life journeys.  What certainly won’t abate going forward, is customer-centricity, and the desire to meet customers at their point of need.

Source: Ebo Richardson | Chief Enablement & Information Officer, Absa Bank Ghana
Tags: Absa BankCashless economyGhana News
Previous Post

#CitiBusinessFestival: Investment in cyber security critical for a formidable digital economy – Ebo Richardson

Next Post

PUSAG elections postponed indefinitely – National President announces

Next Post

PUSAG elections postponed indefinitely - National President announces

TOP STORIES

Akufo-Addo appoints Baffour-Awuah as Minister for Pensions

February 1, 2023

Addai-Nimoh declares intention to contest NPP flagbearership

February 1, 2023

Intelligent Traffic Management System: Arbitration court throws out case against Ghana

February 1, 2023
Load More
ADVERTISEMENT
Citinewsroom – Comprehensive News in Ghana

CitiNewsroom.com is Ghana's leading news website that delivers high quality innovative, alternative news that challenges the status quo.

Archives

Download App

Download

Download

  • About Us
  • Contact Us
  • Photo Gallery
  • Privacy Policy
  • Terms of Use
  • Citi TV

© 2021 All Rights Reserved Citi Newsroom.

No Result
View All Result
  • Home
  • News
  • Business
  • Sports
  • Showbiz
  • Coronavirus
  • Infographics
  • Livestream
  • Videos

© 2021 All Rights Reserved Citi Newsroom.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT