Breaking News

Is there any need for Zimbabwean banks to be technologically updated?

by Elvis Dvene
03 July 2019 | 1161 Views
If a bank is stuck in last century thinking with last century leadership such cultural strategy will lead to eventual failure.

I was in a hotel for lunch with a friend, when he asked me: "What do you think about sticking to use of old technological systems?" I said it was stupid and it's digging your own grave. He then added that the major bank he is working with is proud that this is their cultural practices.

Now, here's the funny thing. That cultural strategy used to work. It doesn't anymore. Digitisation of financial institutions, specifically banks, is the only way to go. It's choice of whether to go digital or burst.

In the past, banks could adapt and change when they saw things working. They had the luxury of time. Regulatory and capital requirements meant that new competitions were slow to make an impact and, if they did, the banks could just stick to what they were doing because participants were very few.
Today, regulatory and capital requirements have been lowered so that almost anyone can launch a bank in many countries, and the things they are doing with their banks are hard to copy if you have old and fragmented systems.

Take my favourite example: Barclays and FBC Bank. The difference between Barclays Bank, Agri Bank to mention a few and other new banks is that- new banks began in today's world FBC, NMB to mention a few. Their core systems and their data are designed to be leveraged. They can provide proactive and personalised service through algorithms.

Now, take my good old bank. Their core system is designed to be a historical snapshot of transactions. They provide zero analysis or personalisation and the data gives no knowledge of customer's financial lifestyle. The same issue affects micro-finance institutions as well as insurance companies who are using old systems.

That's why, as I blogged the other day, challenger banks (those that make use of advanced technology) are getting the lifestyle banking whilst old banks keep the utility transactions.




Returning to that theme of fast track death of ancient banks due to sticking to old cultural practices of doing things, the old bank then needs to think about how to create a data structure that can be proactive, personalised and rich with informational analytics. There is no way the old bank can ever achieve that with a core system designed for branch operations, as most of them are. Their systems were designed for an offline world of the 1970s, and to follow new challengers fast, with their real-time analytics, is impossible with such out-dated back office structures.

That leads to slow following. The traditional bank has to restructure and rationalise its old systems structures, refresh them and renew them, and then add the analytics and personalised capabilities to their apps and services. That will take about five years, if they're lucky. That's not a fast follower.
The fact is that if a bank is stuck in last century thinking with last century leadership, then they will think a fast follower structure and reputation still works. Today's customers go where there is convenience. Instead, the reality is that such a strategy will lead to final failure, as the bank is not fit to compete with the Big Tech and FinTech firms who really get the data. Today's customers go to a bank where there is convenience.

Bottom-line: the world of 2025 and beyond will be dominated by firms that can analyse and leverage data for customer intelligent marketing and service. Any existing bank that has customer data in a static, fragmented, silo structure will fail in that world.

#digitalisation the only way to go

Elvis Dzvene is an anomalous expert in Finance & Banking fields; He is the Chairman of Economic and Finance Cluster in Young Peoples Dialogue (YPD) organisation in Zimbabwe. He writes Articles on his own capacity.
Can be contacted at +263775897093/elvisfinancialuniverse@gmail.com



Barclays FBC Bank Digitisation


Disclaimer:
All articles and letters published on Bulawayo24 have been independently written by members of Bulawayo24's community. The views of users published on Bulawayo24 are therefore their own and do not necessarily represent the views of Bulawayo24. Bulawayo24 editors also reserve the right to edit or delete any and all comments received.

Source: Elvis Dvene

Comments

Latest News

'A coup against Mnangagwa is about to explode'

by Blessing Ivan Vava | 16 July 2019 | 3 Views

CAF President hosts Zimbabwe's Alvin Zhakata

by Mandla Ndlovu | 16 July 2019 | 2 Views

Teachers vow to shutdown schools on 22 July

by Mandla Ndlovu | 16 July 2019 | 2 Views

Civil servants stage demonstration in Harare

by Mandla Ndlovu | 16 July 2019 | 8 Views

Controversial Uebert Angel meets Yoweri Museveni

by Mandla Ndlovu | 16 July 2019 | 1 Views

Mthwakazi National Party takes ZANU PF and MDC head on

by Mandla Ndlovu | 16 July 2019 | 8 Views

Mutasa wanted Mugabe tried at ICC over Gukurahundi

by Mandla Ndlovu | 16 July 2019 | 6 Views

How to prepare for military school admission tests

by Staff Writer | 16 July 2019 | 5 Views

MDC apologises to Mthwakazi

by Mbonisi Gumbo | 16 July 2019 | 9 Views

Auxilia Mnangagwa: A highly trained CIO spy

by Mandla Ndlovu | 16 July 2019 | 9 Views

Mnangagwa-Army fallout deepens

by Mandla Ndlovu | 16 July 2019 | 20 Views

Restrain your wife - Mnangagwa told

by Methusi Ncube | 16 July 2019 | 25 Views

Nakamba refusing to train with Club Brugge

by Staff reporter | 16 July 2019 | 7 Views

Sympathizers turn against Chamisa after by-election defeats

by Staff reporter | 16 July 2019 | 11 Views

WATCH: Zanu-PF unstoppable, says Matemadanda

by Staff reporter | 16 July 2019 | 5 Views

'ZACC will leave no stone unturned to rid of corruption' - sit and eat...

by Nomusa Garikai | 16 July 2019 | 14 Views

Mnangagwa wears bulletproof vest to clinic opening

by ZimLive | 16 July 2019 | 19 Views

Zimbabwe, North Korea, Syria and Myanmar among countries defending Chi...

by Joshua Berlinger, CNN | 16 July 2019 | 8 Views

Chamisa changes tact

by Staff reporter | 16 July 2019 | 7 Views

Chamisa worried about Chiwenga

by Staff reporter | 16 July 2019 | 15 Views

Mnangagwa's govt snubs civil servants again

by Staff reporter | 16 July 2019 | 11 Views

Mnangagwa wants Mthuli Ncube to loosen his purse

by Staff reporter | 16 July 2019 | 6 Views

Entertainment

Pure Black set to take Africa by storm

by Mandla Ndlovu | 04 July 2019 | 852 Views

'Cook Off' movie set for UK premiere

by Agencies | 02 July 2019 | 622 Views

Zimbabwean rapper teams up with top selling American singer

by Staff Reporter | 17 June 2019 | 976 Views

WATCH: Penny Penny song insults Malema

by Mandla Ndlovu | 14 June 2019 | 10614 Views

Mixed feelings over Harare artistes at Econet gig - Econet Wireless' Z...

by Staff reporter | 11 June 2019 | 1126 Views

Low turnout at Sulu's birthday bash

by Simbarashe Sithole | 08 June 2019 | 2544 Views

Ivy Kombo drops 14th album - CELEBRATED United Kingdom-based Zimbabwea...

by Staff reporter | 06 June 2019 | 446 Views

The latest slots online in 2019

by Staff writer | 05 June 2019 | 828 Views
iBlog

Ios 9 Features Inspired By Android

apple announced ios 9 on monday, and while watching the keynote, i had just a little bit of déjà vu. most of ios 9's new features seem to be squarely aimed at apple's biggest rival in mobile: android. specifically, they were about catching up to ... Read More
Sergey 13 June 2015 ago

Apple Watch Teardown Reveals Unique Hardware And Replaceable Parts

The apple watch may not be fine jewelry, but bill detwiler cracks it open and shows you why he thinks it's a fine piece of tech. the apple watch may be beautiful on the outside, but how about on the inside? in this cracking open installment, we go in... Read More
Sergey 11 June 2015 ago