22/02/2018
*Driving Bank Success Through Fintech Innovation in 2018 and beyond*
As an IT expert and a service provider for some Nigerian banks , i have discovered that nigerian banks IT Units are still dealing with back office tasks such as maintenance of supply chains, network speed , software and computer infrastructure while the banks in countries like Kenya , South Africa and other technologically advanced nations are dealing innovative banking products driven by fintech .
Tasks are now largely automated and banks are under increasing pressure to deliver a better, more digitalized products instead of buying softwares and infrastructure which are under-utilised , they should be tasked with ensuring product performance and UX( user experience) satisfaction....
I have always said that Nigerian banks make up what has always been an inherently change-averse sector. While this approach worked for so long, the scarcity of disruptive technology throughout the history of the finance sector meant there was no need to innovative in order to drive bank business success.
They were profitable come what may..... There was no need to innovate.....
There was no need to differentiate offering. But now, this is simply not the case!
The kingmakers in the future of the financial sector will be those who truly know their customer and successfully monetize opportunity through delivering financial products that the customer really wants.
Banking is no longer about " come and open an account with us or we have an online banking platform" but about providing financial products/ services requested or in high demand by your potential or existing customers .
This is why the third wave of fintech that we are entering into will be marked by a widespread collaboration between fintech companies and incumbent banks
The question is : How many Nigerian banks are colloborating with fintech company ro re-strategize and position for the fintech revolution ?
Banks need fintechs ro understand their customer, they have to partner with data analytics companies for customer insight , they have to partner with google / facebook / whatsapp, yahoo and leverage their platforms to create innovative banking products .
Nigerian banks should invest in fintech research, machine learning and AI.
This is because fintechs have a greater understanding of the customer through technologies including AI, machine learning and big data analytics.
By looking for the knowledge they need to improve their products, the Chief Innovation Officer then knows what type of fintech to collaborate with, and can set about the process of truly innovating their bank’s products.
It will be the savvy chief innovation officer who not only realises this but knows which fintech partnerships to pursue in the interests of driving their bank’s success!
Competition between banks and fintechs is turning to collaboration in many financial verticals in the western world and advanced nations.
It’s a win-win for both parties involved.
Nigerian banks should leverage fintech agility and high tech capabilities to create a closer relationship with the customer and fintechs advance their technology solutions within the financial sector and not rolling out solutions or buying infrastructure that might not last up to a year before the next upgrade or end of life !
Our bankers , you can take this to your strategy sessions and receive a standing ovation .
Nkem Orakwe
Founder / CEO
Digital Hands Limited
www.digitalhandslimited.com
