Inspite of the forays being made by Africa’s banking institutions, there is utmost need to address some of the nagging challenges facing the banking system within the country. This is in response to the findings from a new report highlighting the key challenges facing African banks which was just released this week.
The Report which is the outcome of the tenth Africa Forward Together (AFT) forum which took place in Mauritius and spearheaded by Mauritius Commercial Bank (MCB) dovetailed into special workshop aptly called “Meeting of Minds” session leveraging on the insight and brainpower of over 35 C-level and senior banking leaders across the African region and beyond.
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The aim of that session was to identify and prioritise the main challenges faced by banks in five distinct but interlinked areas that were purposefully scoped to look beyond numbers, namely, expertise, people, operational efficiency, risko and corporate sustainability.
The five key areas identified as main challenges facing African banks and financial institutions, are lack of technical expertise amidst the increased cybersecurity risk. KYC issues hampering financial inclusion, talent management, retention and development.customers’ education and staff skills gap and information technology and Digitalisation and transformation programme expertise
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Speaking on the findings of the Report, the Group CEO of Mauritius Commercial Bank (MCB) Mr. Pierre Noel said that the lack of KYC and other compliance frameworks “to facilitate the on-boarding of unbanked segments remain a key obstacle for regional banks to further financial inclusion.
This challenge according to Mr. Noël, highlights the need fo developing solutions from customer segments that are distinct and sometimes unrelated (urban customers with high digital literacy vs rural unbanked segments requiring traditional supports and channels).
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Last but not least, sustainable development and the necessity to embed its principles into corporate DNA are also issues highlighted by Mr. Noël. “The alignment of long-term value to stakeholders with corporate sustainability requires a considerable strategic push, a deep adjustment of corporate culture and a more measured risk-management mindset. This adjustment will have to take place sooner than later, because a trusted bank with a wider positive impact is increasingly being upheld as the minimum standard vis-à-vis stakeholders ranging from our own customers and central banks, to providers of lines of credit”.
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MCB’s CEO insists on the fact that the insights of the report can help prioritise strategies for the future and promote awareness “that collaboration and partnership within the region has potential to address many of the common challenges facing African banking and financial services today”.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry