Interview: Chris Ofikulu
How can financial institutions leverage the entry of financial technology (fintech) firms and telecommunications companies in the banking sector?
CHRIS OFIKULU: Fintechs have emerged as invaluable partners in the digitalisation of the sector. Their rapid entry into the financial ecosystem has ushered in a wave of opportunities, including leveraging big data. Telecommunications firms and fintechs possess extensive customer databases, which they have diligently curated over the years. This data trove provides banks with a unique opportunity to harness insights into customer behaviour, preferences and trends.
Furthermore, fintechs serve as platform enablers, facilitating efficient operations for banks. They bring innovative solutions to the table, streamlining processes, enhancing security and expanding the reach of financial services. This collaboration is vital in a rapidly evolving landscape where agility and adaptability are paramount. Fintechs foster a cooperative relationship, leveraging their agility and technology to complement the stability and strength of traditional banks, ultimately benefitting Ghanaians by offering a wider array of accessible and efficient financial services.
In what ways do you anticipate robotics, digitalisation and artificial intelligence (AI) will shape the future of the banking industry?
OFIKULU: The integration of robotics and AI into the sector signifies a transformative shift in operations. Automation has introduced unparalleled efficiency and reliability, a departure from human-centric processes that are susceptible to errors. For instance, banks have embraced innovation with automated chatbots, offering clients access to an array of banking services.
These technologies are pivotal for decision-making, with algorithms sifting through datasets with precision, enabling more informed choices. Additionally, AI-driven customer service tools enhance the client experience. As these advancements evolve, the banking sector will rely on robotics and AI in solidifying their role as game changers in bolstering accuracy and efficiency.
What impact will the rise of digital banking have on customer acquisition, retention and profitability?
OFIKULU: The arrival of digital banking has been transformative. Digital channels have emerged as powerful tools for customer acquisition, offering unparalleled convenience. Banks that are investing in digital platforms have witnessed an increase in the number of new account openings, demonstrating the increasing appetite among Ghanaians for accessible banking services. Moreover, digitalisation has revolutionised customer retention. AI-powered solutions have enabled banks to serve clients efficiently around the clock. This significantly enhances customer satisfaction and loyalty, which underpins the retention strategies of most large financial institutions.
In terms of financial performance, the adoption of digital technologies has accelerated the time required to serve customers, leading to operational cost reductions and improved profitability. The digitalisation wave has also enabled banks to identify cross-selling opportunities, contributing to their financial successes.
To what extent are local banks committed to sustainable and responsible banking?
OFIKULU: The Bank of Ghana (BoG), the country’s central bank, has taken a proactive role in ensuring that banks are committed to sustainable and responsible practices, and in November 2019 launched the Sustainable Banking Principles and Sector Guidance Notes. Lenders now conduct rigorous assessments of the environmental and social impacts of the organisations of clients seeking loans, regularly reporting the results to the BoG. This due diligence ensures that clients align with sustainable and responsible practices. The aim is to safeguard not only the bank’s interests, but also protect the customers themselves.
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