Yves Eonnet (TagPay), Djiba Diallo (Ecobank Group), Obinna Ukwuani (Bank of Kigali) and Carl Manlan (VISA), discussed how the digitalisation of banks is a huge opportunity across Africa and partnerships with fintech would address the challenges of financial inclusion.
For the banks to stay relevant Djiba Diallo, Senior Fintech Advisor, Ecobank Group said that it is important to understand fintechs and leverage the opportunities.
Banks are still there and still needed but need to adapt to what is happening on the continent and partnering with fintech companies is key to doing that.
Obinna Ukwuani, Chief Digital Officer, Bank of Kigali said, “We see digital transformation as a necessity, so the bank has invested in transitioning the bank into this new era”. “All companies are becoming technologies companies, whether a bank or not”.
Cash currently leads the way in the majority of Africa, but to increase financial inclusion, which is increasing already through financial technology, digital banking will need to have continued growth.
Financial inclusion also enables banks to feed new businesses and entrepreneurs, and hence builds the economy at the same time. Using the technology of mobile telephones, digital banking will have a significant role to play now and in the future.
Carl Manlan, Vice President, Head of Social Impact, CEMEA, VISA said, “Because we are cash dependent the opportunity to introduce digital payments to help promote financial inclusion is critical and to that we need to ensure that there is adequate financial literacy and skills building along the way to make it work for more people.”
Partnership between banks and fintech’s will not only help reach more customers but also build financial literacy amongst consumers. In addition, the industry will need to develop the talent and skills, and this can be done across Africa ensuring the industry continues to grow.
Banks no longer see Fintech’s as disruptors but partners. More often, as a key part of their business with a shared responsibility for delivering to customers
Banks are going into a new world and need new platforms, new technology and a new architecture, the old core banking system is being surpassed and a new core banking system is needed. FinTech’s will help banks provide a better service to customers, working together and within the same regulatory framework. Digital banking helps with financial inclusion and formalising the economy and banks, globally, need to react to the digital revolution and customer demand.
Yves Eonnet, Chairman of TagPay, summed up the event by saying, “The time we are entering is very exciting for us [FinTech’s] and for you [banks].” “The expertise that wehave opens up banks to new ventures and new capabilities, especially due to the low cost and speed of deployment.”
