Governor CBK Njoroge has advised the banking sector to balance innovation with good governance to thrive in the 4IR
Challenges presented by the new digital revolution including modern innovations and technologies if harnessed by the sector can instead create opportunities for governance to re-engineer a landscape for financial services to transform lives.
In a key note speech at the 2nd day of Annual bankers Conference held at Serena hotel, Kampala on 27th July 2021, The 9th Governor Central Bank of Kenya, Dr Patrick Ngugi N’joroge highlighted that if the banking sector is to thrive in the current 4th Industrial Revolution (4IR), there is need for the banking sector to focus energies to long term strategies that don’t compromise the services to the clients coupled with a balance between innovation and good governance.
“We as the Banking sector should avoid short term profit strategies, but rather adopt long term strategies that do not compromise our services to our clients. We must all do the right thing to not only survive, but also thrive in this new Revolution” he said
The Governor said that the challenges presented by the new digital revolution including modern innovations and technologies if harnessed by the sector can instead create opportunities for governance to re-engineer a landscape for financial services to transform lives.
Dr Patrick added that much as strengthening ties through collaboration of banks may be victorious, banks need to address the common challenges of the clients as he equated it to marathon training
“E-commerce has exploded and businesses have transformed to ride on digital rails, on a scale unimaginable. We must all have the courage to do the right thing, we must have the courage to bend it like Beckham, balance innovation and stronger governance” he said
He advised commercial banks to strengthen strong ties with the clients through involving them in the creation process of the different products to get the right services.
“Banks that have succeeded or that are succeeding are those that have been close to their customers. The notion of competition in the sector is zero-sum game. How connected are you to the customer? Are your products working for them? Don’t think for them let them be part of the creation process” he said
The Governor bank of Uganda Prof. Emmanuel Tumusiime Mutebire in picture above while presenting in the same conference said that though the 4th Industrial has presented various challenges and its effects, the revolution has offered opportunities which has made it possible for customers provided with financial services.
“The digital revolution he said has offered opportunities for financial inclusion and offering of financial services to people regardless of income or location. Customers are able to transact in a seamless and timely manner” he said
The Chairman, Uganda Bankers Association, Marthias Katamba in his remarks alluded to the fact that the 4th Industrial Revolution has been disruptive in nature and that it has contributed in propelling the financial services to a high speed of mobile and internet.
He however expressed concern that the banking sector in Uganda has continuously been lobbying for measures to cushion for credit takers from central bank which he said takes a slow pace to be responded to.
He mentions in picture below that the major effects that the 4th Industrial revolution has had on the businesses included; customer expectations, product/service enhancements, collaborative innovation, organizational structure and its people among others.
“As a banking sector, we have further submitted very specific proposals to the central bank and Ministry of Finance on medium to long term measures to cushion persons and business/sectors that took credit facilities from financial institutions” he said
The Annual Bankers conference is organizes by Uganda Bankers Association that brings together practitioners, regulators, industry experts from national, regional and international spheres delivering financial/banking services.
The 4th bankers’ conference 2021 was sponsored by Mastercard, Raxio data centre, FINCA, Experian, Stanbic Bank, KCB and Financial Sector deepening.