Emerging Tech Fuels a Data-Driven Banking Future

For the past two years, the world has gone through drastic changes and fast-tracked digital transformation that affected various sectors. This was mostly brought about by the global pandemic.

Banking was not left behind as emerging technologies sharpened resiliency, ensured continuity and enhanced customer experiences in a short span of time. Customers responded positively and adopted these new services, albeit in some instances there was no other choice as brick-and-mortar facilities and contact centres at one moment or another made way for the new normal.

An agile, data-driven future

The role of banks is shifting from taking deposits and lending money to providing embedded services as organizations embrace Industry 4.0. Banks are integrating new technologies, Internet of Things (IoT), cloud computing, analytics, AI, and machine learning for intelligent data-driven operations – as they work on being both digitally available as well as being digitally visible. In fact, many of the banks we know, and trust are turning to the cloud to deliver the fast, personalized customer experiences that are at the heart of their new digital first strategies.

Rising expectations for personalised experiences

Banking customers expect exceptional, seamless omnichannel experiences and innovative products at value. To create a lasting advantage and retain trust, retail banks need to gain insight into customers’ current and future needs and how to meet them.

“As consumers’ preferences for digital and mobile solutions continue to grow in East Africa, financial institutions should utilise emerging technologies that reduce risk and increase security, ensure compliance around critical highly regulated processes all whilst increasing innovation. AI and hybrid cloud are the two most essential capabilities to effect change and fuel modernization across the financial services industry to meet the growing demands of digital-first consumers. IBM’s capabilities across IBM technology, consulting, and our IBM Ecosystem have already helped traditional financial institutions and FinTech start-ups propel into an age of digital disruption”, says Caroline Mukiira, General Manager, IBM East Africa.

The push for open finance could facilitate these demands using application programming interfaces (APIs)—the connections that enable applications and systems interaction to build new offerings. These APIs allow developers to create new applications that use capabilities from a much broader ecosystem of service providers, enabling banks to innovate with more agility and speed.

“With the liberalisation and growth of Ethiopia’s telecom sector helping to increase the adoption of digital technologies, the demand for personalised digital banking experiences is on the rise. Our partnership with IBM has offered us the ability to enhance our integration capabilities, and increase our speed to market, agility, security and quality of integration tasks. We can already see these benefits on Amole, our omnichannel banking platform, which is using IBM Cloud Pak for critical transactions such as money transfers, mobile wallets, etc to streamline operations and improve digital experiences for our customers,” says Shimelis Legesse, Chief Information Officer, Dashen Bank.

Focus on sustainable banking supply chains

Dramatic disruptions and the increasing importance of macroeconomics and sustainability factors to supply chains have thrust Banking and Finance Chief Supply Chain Officers (CSCOs) into the strategic spotlight. Those establishing data-driven workflows, insights, and actions are positioned to deliver compelling competitive advantage

“To effectively tackle unprecedented supply chain disruptions, Banking and Finance, Chief Supply Chain Officers, CSCOs, must increase investments in automation, AI and data-driven workflows, ecosystems and sustainability. According to the recent IBM Institute of Business Value Study, 47% Banking & Financial Markets CSCOs are expecting sustainability initiatives to substantially change their supply chain models.” shares Saad Toma, General Manager for IBM Middle East, and Africa.