Business Analyst - June 9

Thursday, June 9, 2022
BaNkINg
Value creation must be ultimate
object of digitisation in banking
It is evident globally, that
technology has in many ways
altered how people interact with
their environments. Largely, the
way we shop and make
payments have been influenced by
digitisation.
Undoubtedly, financial
intermediaries like banks have seen the
most transformation in the wake of
technological advancement and
digitisation. this radical and dynamic
change being experienced generally is
believed to have been solely driven by
the convergence of digital innovation
and rising consumer expectations.
over a decade ago, when I entered the
banking sector, smartphones were still
evolving, and the means of interaction was
predominantly brick-and-mortar.
Concurrently, the automated teller
machines (AtMs) served as the most
common electronic medium of interaction
between banks and their customers.
technology, back then, was largely a backoffice
tool with relatively little front-end
presence.
However, a new range of technologies
today are underpinning the digital drive,
and have become a topmost priority for all
financial institutions, simply because, the
relationship between them and their
customers has become far less physical and
more automated.
Greater automation is transforming
customer experience, offering new levels of
speed and slickness. Invariably, the sector
will continue to undergo transformation as
long as technology continues to evolve.
the evolution we have witnessed so far,
has significantly facilitated the
development of a business model themed
“banking-as-a-service”, a vehicle for driving
more value-added digital solutions centered
around the lifestyle of the modern
consumer. Undeniably, the last decade has
also witnessed the emergence of business
vehicles, such as Mobile Money Issuers
(MMIs) and the financial technologies
providers (Fintechs) that have disrupted the
traditional financial service ecosystem.
Undoubtedly, their presence has among
others fueled the drive for financial
inclusion globally, with Ghana not being left
out. this has also led to the redefinition of
who a bank’s competitor is. the upgraded
banking model, sometimes referred to as
Banking 2.0 is inevitably the way to go as we
journey into the future. this drive that we
have been on for some time now is
envisaged to be riding on seamless digital
infrastructure as the means of delivering
excellent services to customers.
Digital banking
Clearly, the emergence of digital banking
has created a ripe environment for meeting
the expectations of the customer. More than
Clearly, digitisation has led to the
development of new concepts, new
business models and in some cases,
redefinition of sectorial boundaries, like
in banking.
A rejuvenated sector where
consumers have the audacity to demand
more convenience based on their
volatile preferences. the utmost service
demands have transitioned from
internet banking, cards and now open
banking, tokenisation, digital currencies,
contactless and even to concepts such as
internet-of-things (Iot), artificial
intelligence, wearables, instincts.
ever, the average customer is continuously
equipped with the right knowledge and
tools to facilitate access to services without
any human intervention.
truly, the customer is dictating the pace
and the banks are expected to appreciate the
immediacy of the needs, and importantly
respond appropriately – often before they
even realise they need them. It is believed
that the introduction of artificial
intelligence tools would lead to effective
decision making on how to better meet the
growing needs of customers, whilst aiding
the process of personalizing solutions
according to the demands.
Additionally, the latest digital dimension
is the regularization and regulation of the
use of cryptocurrencies which seems to be
gaining ground across the globe.
the beauty of this emerging solution
within the ecosystem is that, it is not driven
by a single entity, but by the convergence of
various services in the interest of the
customer. this convergence of services is
perceived by some experts as
being at the maturing point of
the digital ecosystem. this is
considered as the lead to several
initiatives at the bank level,
industry, regulatory, national
and even region levels geared
toward the development of a
true digital ecosystem.
In a rapidly changing world,
however, one thing that remains
constant throughout the
changing scenes of technology
is continuous delivery of utmost
services to customers. In any
case, the purpose and ultimate
object of every technological
and digitisation pursuit in
banking must aim to create
value for customers and clients.
Admittedly, the biggest
challenge of every entity is
translating digital into
meaningful value for customers.
this should therefore be on topof-the-minds
of all digital
transformers, and of course
financial intermediaries. that is
what we must seek to achieve, because that
is how we will know we have succeeded.
Certainly, it is truly the expectation of a
modern stakeholder like the customer.
In view of that, we must continuously
strive towards understanding the needs of
customers and businesses better – a 360-
degree view of the present and every
changing lifestyle. Furthermore, we must
seek to extend varied and more interactive
services to the customer.
In addition, a deeper segmentation of
the portfolio and not relegating to a single
point of service delivery are key parts of
value creation.
these would essentially lead to the
deployment of personalized offerings.
sustained value creation is therefore
undeniably the catalyst for retaining and
attracting customers, and notably an avenue
for rewarding all stakeholders. evidently,
this is what is rooted in the transformation
agenda of the Prudential Bank.
Prudential Bank journey
At Prudential Bank, we continue to work
towards remaining trustworthy and credible
to our loyal customers. the bank
continuously works towards striking the
balance by ensuring that both our
technology and human capital are
optimized at all times. our investments over
the years have focused on both technology
and our human capital. While investing in
technology, we also invest in human beings
to build their capacity to be able to manage
the technological tools. the Bank is at a
threshold with a service assurance promise
of delivering an end-to-end e-relationship
with our customers. We have adopted a
digital-first mindset to attract and retain
new customers, and also to leverage on our
digital assets to increase the banks deposit
and loan portfolios.
With over 25 years of banking
experience behind us, our understanding of
“Greater
automation is
transforming
customer
experience,
offering new levels
of speed and
slickness.
Invariably, the
sector will
continue to
undergo
transformation as
long as technology
continues to
evolve.
the needs of Ghanaians has earned us their
trust and confidence. For us also, digitization
is about leveraging technology and
innovative tools to improve the efficiency
and efficacy of a given process. Marrying
these two makes Prudential Bank the bank
of choice now and in the future for every
Ghanaian.