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Powering Banking With Technology

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  • Powering Banking With Technology

Technology is redefining and simplifying banking. It has also brought banking to the doorsteps of almost every household. For instance, the opening and operating of accounts can now be done without visiting a bank or physically interacting with human beings and from the comfort of one’s office, bedroom or even while in transit. Technology has practically revolutionised banking and every individual now has the capacity to have their banks with them everywhere and in their pockets.

The Head, Information Technology, Wema Bank Plc, Adewale Saka, disclosed that banks are now empowered to reach customers and potential customers even in areas where they do not have physical presence. He explained that the ease of creating banking products and services as well as making them available to customers is quite amazing, and this is made possible through technology.

“Bank customers now have access to almost all banking services 24/7, including access to cash at odd hours through the Automated Teller Machines (ATMs), airtime recharge, bills payments, funds transfer, service subscriptions, online and offline shopping, lifestyle management and a host of others. Banks in Nigeria have leveraged technology to reposition banking in the minds of their customers.

“All these have been achieved through technology-powered delivery channels such as mobile banking apps, online banking platforms, robust payment and collection platforms, among others. In my own view, most banks have become technology service providers,”he said.

He believes that banks have effectively harnessed technology to improve banking services even though there is still room for improvement. ”Everything in banking today is powered by technology to the extent that when there is a technology failure in any bank, it can cripple the entire operations of such bank with attendant financial losses and negative brand perception. Banks in Nigeria have over the last few years embarked on automation of backend processes to drive efficiency, improve productivity, innovate effortlessly and optimise risks,” he added.

Saka said that Wema Bank is the bank to beat when it comes to innovation using technology. “As it stands today, Wema has made a bold statement with ALAT being the first truly digital bank in the country. What is also unique about this is the fact that our digital bank and all other digital channels provided for customers’ comfort are fully owned by Wema,” he said.

He explained that WemaMobile platform can be switched to SMS banking if you run out of data right from within the app. This is an amazing experience that is unique to Wema. “Card Control integration to all our service points (ALAT, USSD Banking, WemaMobile, WemaOnline, among others) and giving customers of the bank absolute control over when, where and how their debit and credit cards are used without recourse to the bank is the first of its kind in the Nigerian banking industry. We have also consistently provided very stable and reliable banking services through our digital channels,” he said.

Speaking further, he said banks have also developed and deployed innovative products and services for customer acquisition, risk management, transaction processing and ultimately improve the bottom-line. Cash-lite policy of the Central Bank of Nigeria (CBN) has been hinged on technology and so also is the Bank Verification Number (BVN) project.

“Unlike before, customers can get instant value for both intra-bank and inter-bank transfers without having to fill forms, join a long queue or visit a bank branch. Customers are now able to have value on cheques deposited in their accounts within 24 hours and in some cases, customers do not need to visit a branch to present their cheques for clearing, since all banks started participating in the automated clearing house using Cheque Truncation Systems,” Saka disclosed.

Significant successes have also been recorded around taking banking to the unbanked through the use of technology in driving Agency Banking processes. More and more in-branch banking services are getting digitised and made available to customers across multiple alternative channels to make customers less dependent on bank workers but rather serve themselves.

“However, improvement is still required around data analytics for determining specific needs of customers and various segments of the markets to develop products and services to meet those needs. Another area requiring more attention is eliminating the need for customers to come to the bank at all. Wema Bank is leading the rest of the industry in this area through the creation of our Digital Bank, ALAT. This is the next level of effective use of technology in Banking,” he said.

He admitted that technology has undoubtedly brought positive transformation to the Nigerian banking industry but surely it hasn’t been without a couple of challenges. In the days of pure traditional manual or semi-manual banking, operational downtime was minimal and most times limited to the specific business unit or branch while a downtime on a centralised Core Banking Application or infrastructure can bring the entire operations of a bank to a halt.

“Banking industry has been experiencing new types of risks associated with the use of technology for banking services. These risks could be due to human error, systems failure, fraud and cybercrimes. Banks in Nigeria have lost a lot of money to various fraudulent practices perpetrated through electronic channels. Fraud attempts, successful frauds, hacks and scams have steadily increased as banking takes centre-stage in the digital world,” he stated.

He warned that outsourcing or cloud computing or sharing a public infrastructure is less secured than on-premise deployment of infrastructure. “All that is required for an organisation is to go through a stringent process in selecting a cloud service provider and ensure a water-tight agreement is put in place to protect their businesses. The type of service to be hosted on a public cloud should be determined by the cloud strategy of various institutions and all conditions required to effectively protect information asset on-premise should be considered when outsourcing or migrating to the cloud,” he said.

Saka described technology as a great enabler, making banking more accessible and reducing costs for consumers. I don’t think bank branches are going away because people still need human contact.

“However, it is expected that banks will shift competition to the digital space and de-emphasise competing based on number or size of branches. Rate of branch expansion will go down paving way for channels and digital penetration. A lot more of digitally-powered unmanned service centres where customers can drive in and perform banking services (including seeking financial advice or solutions) on a self-service basis will take centre-stage. This has started already but it’s going to continue and increase in the coming years,” he said.

Continuing, he said: “More and more banking processes will get digitised and a lot more services currently handled within banking halls or head offices of banks will become available via digital platforms. Banks like ours (Wema) have invested in the bank of the future, ALAT and I believe that banks that fail to invest and take advantage of new technologies to reengineer their products and services may be losing customers to the better-quality or lower-cost products of smarter ones,” he stated.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market.

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Jeff Bezos Sets a New Record as Net Worth Hits $172bn

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Jeff Bezos

Jeff Bezos Breaks His Own Record, Now Worth $172bn

Jeff Bezos, the Chief Executive Officer and Founder of Amazon Inc, on Wednesday broke his own record to set a new all-time record of $172 billion net worth.

Bezos’s previous record was $167.7 billion attained in September 2018. However, the billionaire broke the record on Wednesday after Amazon shares gained 4.4 percent to close at $2,878.80 per share.

Jeff Bezos companies

This is despite the billionaire parting with 19.7 million Amazon shares in July 2019 as part of his divorce settlement to his wife, Mackenzie Bezos.

Mackenzie Bezos’s 19.7 million shares now worth around $56.9 billion, making her the second richest woman and the thirteenth richest person in the world.

Jeff Bezos’s net worth has now risen by $57.4 billion from the year-to-date, according to Bloomberg Billionaire Index.

Jeff bezos Net worth

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Opay Pauses Some Business Operations as COVID-19 Bites

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Opay halts business units

OPay Halts Some Business Units Amid COVID-19 Pandemic

Opay, a seamless mobile money service provider, has announced it would be putting some of its business units on hold as COVID-19 pandemic bites.

In a statement released by the Chinese owned mobile money start-up on its official twitter page @OPay_NG, the company said “We can confirm that some of our business units including the ride-hailing services, ORide, OCar as well as our logistics service OExpress will be put on pause.”

This, it said was largely due to the tough business environment brought about by COVID-19 pandemic, the lockdown and government ban of motorbikes in Lagos.

The statement read “Globally, ride-sharing businesses have been heavily impacted by the pandemic. But several months ago, foreseeing this issue, OPay had already taken preemptive steps to restructure our business focus away from rides. It is worth to note that this final restructuring has minimal impact on OPay as a whole business.”

“It is important to clarify that ride-sharing had always been only one part, and not a major part of OPay’s diversified business in Nigeria. In fact, OPay had been investing more and seeing accelerated growth in its commitment to Nigeria’s financial and technology inclusion.

“During the pandemic, we have seen continued demand for our offline mobile money agency, and online digital payment, which remains the core of our business.

“From January to April 2020 for example, we witnessed a 44% growth of offline and online transaction value even in the midst of pandemic and lockdown. This is a testament to the high demand for flexible and easy financial services by Nigerians. OPay remains one of the most well-funded and profitable mobile money platforms in Nigeria, and we will continue to do more for our customers.”

Below is the company’s official statement as published on Twitter.

Opay Statement

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Facebook, Google Earn 80% of Annual Digital Ads Spend – Report

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Facebook, Google Earn 80% of the £14bn Spent on Digital Ads in 2019

A recent report from the United Kingdom’s competition watchdog has shown that Facebook and Google earned 80 percent of all the money spent by advertisers on digital platforms in 2019.

In the 440-page report, the Competition and Markets Authority (CMA), UK said Google and Facebook market positions are having a “profound impact” on newspapers that now receive almost 40 percent of all visits to their sites through the two platforms.

“This dependency potentially squeezes their share of digital advertising revenues, undermining their ability to produce valuable content,” the watchdog said.

This is coming two weeks after Investors King called on the Federal Government of Nigeria to protect Small and Medium businesses against Facebook and Google activities or watch the nation’s SMEs die. Investors King had posited that “Nigerian startups can not compete with Facebook and the recent tax announced by the Federal Government through the ministry of finance would not be enough to stop these giant tech companies from taking advantage of Nigeria’s young growing market.

According to the CMA report, out of the £14 billion spent on digital advertising in the United Kingdom in 2019, Google with more than 90 percent share of market search earned £7.3 billon while Facebook with more than 50 percent of display market earned £5.5 billion. Representing 80 percent of the total digital ads spent in 2019.

While the report admits that the two platforms help small businesses reach customers and are valued by users, it also said they have “developed such unassailable market positions that rivals can no longer compete on equal terms”.

Andrea Coscelli, Chief Executive at CMA, said: “What we have found is concerning – if the market power of these firms goes unchecked, people and businesses will lose out.

“People will carry on handing over more of their personal data than necessary, a lack of competition could mean higher prices for goods and services bought online and we could all miss out on the benefits of the next innovative digital platform.

“Our clear recommendation to government is that a new pro-competitive regulatory regime be established to address the concerns we have identified and regulate a sector which is central to all our lives.”

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