How can financial institutions ensure inclusivity, digital transformation, and analytics in their operations for an enhanced customer experience?
This was the first topic of the first panel discussion at the 2nd annual Global Data Science and Artificial Intelligence (GDSAI) summit hosted by @iLabAfrica-Strathmore University last year
The panel, featured Hartnell Ndungi, Chief Data Officer at Absa Bank Kenya; Ezekiel Macharia, CEO at Kenbright Holdings; and Satyajit Turumella, IT Advisory Director at Grant Thornton Advisory East Africa, explored the transformative impact of digital technologies on financial services.
Digital transformation is revolutionizing the landscape of financial services, reshaping customer acquisition, improving client satisfaction, and simplifying banking procedures.
In the pre-revolution era, customers heavily depended on face-to-face interactions with bank staff, making processes such as opening accounts, conducting transactions, and accessing financial services time-consuming and paperwork-intensive.
The ongoing change is evident in more efficient banking procedures, achieved through the simplification of traditional processes through automation and digital interfaces. The significant move towards online and mobile platforms is an important factor in boosting accessibility, consequently contributing to an enhanced overall customer experience.
Mr. Macharia highlighted the importance of effective data storage and aggregation to ensure inclusivity in financial institutions, stating, “We ensure inclusivity, digital transformation, and analytics by looking for effective ways to store your data and finding ways we can aggregate data in a way that communicates to everyone.” This shows the significance of accessible and comprehensible data.
Digital transformation is not just a choice but a necessity for the financial sector, driven by escalating customer demands, complex regulatory environments, and intense competition within the sector.
In a 2022 report by McKinsey and Company, it was revealed that digital transformation in Africa constituted only 25 to 30 percent, a figure notably lower than the global average of 50 percent observed in markets such as America and Asia.
Within Kenya, the Equity Group has emerged as a pioneer in digital transformation, offering a comprehensive array of digital products that leverage technology to address the increasing need for convenient, accessible, and affordable banking services.
Mr. Ndungi elaborated on the practical applications of Artificial Intelligence (AI), emphasizing its role in enhancing customer interactions by collecting and analyzing feedback, predicting customer behavior through scorecards, enabling organizations to cater to their needs effectively, suggesting suitable products to customers, and offering personalized experiences. The integration of AI is positioned as a strategic move to cater effectively to customer needs.
Although a lot of the financial sectors are trying to incorporate digital transformation, it comes with a concern, and that is how customer data needs to be protected. The protection of data is an important concern for organizations and businesses. With the increasing reliance on technology for storing and transmitting sensitive information, the threat of data breaches has become a major issue.
Satyajit Turumella addressed these concerns by presenting key considerations when managing and protecting data:
- Do you understand what your personal data is?
- Do you trust AI with your data?
- Do you trust the governance of the organization to which you consented to manage your data?
The insights from the panel discussion shed light on a path forward for financial institutions. The commitment to inclusivity and digital transformation emerges as a cornerstone in delivering an exceptional customer experience, shaping the trajectory of the financial industry in the years to come.