Lead Analyst, Global Banking & Capital Markets, Ernst and Young (EY), Karl Meekings, has said despite that business priorities are increasingly focused on growth and innovation, few banks are digitally mature.
According to him digital maturity is the mot du jour or word of the day for the future success of banking.
Speaking at the EY ‘Global Banking Outlook 2018’, breakfast meeting for top bank executives in Lagos, Meekings revealed that in a healthier banking industry, the mood of bankers are buoyant, banks are more resilient with remediation fading.
“Globally, banks capital is improving and bank litigation expenses falling, widening jaws will improve profitability Revenues are expected to grow but so too are costs in most markets.”
He said widening jaws will improve profitability, revenues are expected to grow but so too are costs in most markets.
He stressed that digital transformation a key priority but risk management is also critical.
Meekings said while Nigeria banks are currently maturing digitally by 33 per cent, it’s expected to become digital leader by 56 per cent in 2020.
“Few banks are digital mature today, but most expect to be in 2020.Banks are increasing their investment, Nigeria will lead the way. Investment is focused on the growth agenda.”
Hence, he advised banks to focus on its strategy with customer centricity products, customer-specific channel strategy being part of an ecosystem.
He said banks managers should segregate structural performance from bank-specific factors, identify exceptional performers and assess reasons for superior performance.
In his presentation, ‘Creating the bank of the future’, Technology Consulting Leader, EY West Africa, Adedapo Adewole, said traditional financial service players are becoming less relevant while innovators are taking advantage of market trends and changing consumer expectations.
He said fintech players have also become very active in Nigeria, noting that the digital space is expected to enhance customer experience, optimise or reduce costs, enhance revenues and empower employees.
According to him, digital should aim to eat into traditional share of the market as well as create new revenue streams, adding that operational efficiency is one of the key objectives of digitisation by eliminating traditional overheads and costs.
“Digital is about using innovative technologies to improve the experience of the end customer, it enhances the ability of an organisation to drive collaboration and provides employees with the required tools to succeed,” he said.