Mr. Victor Yaw Asante, the Managing Director of FBNBank Ghana, has called on banks in the country to remain efficient in order to meet the expectations of consumers and to remain competitive in the face of the Africa Continental Free Trade Area (AfCFTA).
According to the Managing Director of FBNBank Ghana, this will ensure that the industry remains relevant, especially in product development, personalization, and customer service delivery. He thus, charged the banks in the country to be committed to continuously innovating to keep up with the pace of changing customer behavior and expectations.
“Our industry needs to remain efficient and competitive, at least in the sub-region particularly in the face of AfCFTA and innovation, especially in the areas of product, processes, and marketing is a key part of the process.”
Mr. Victor Yaw Asante
Mr. Victor Yaw Asante made these remarks when interacting with some customers of FBNBank’s Abossey Okai and Kaneshie branches.
Mr. Asante opined that the digital age is transforming almost every sector and aspect of daily life, saying that it affects “the way we work, trade, learn, bank and access information, with innovation becoming crucial in the process; Particularly, the use of financial technology to provide digital financial services to support individuals and businesses to live in the digital economy”.
These, the Managing Director noted, could alter customers’ behavior, needs, and expectations. He added that banks generally are aware of what customers want, namely: easy accessibility, real-time assistance, personalized services, and data security. He moreover, asserted that innovation and digitization provide the best means to keep the customer happy.
Innovation of Banks Since COVID-19
The Managing Director of FBNBank Ghana noted that the banking sector has witnessed its share of innovation since COVID-19 hit, with everything moved online to meet the needs of customers.
“Although the pandemic moved up the time for planned investment in digitization, banks cannot slow the pace because customers’ tastes, products, and service technologies continue to change. Therefore, to keep up with customer expectations and new technologies, banks should be highly innovative”.
Mr. Victor Yaw Asante
Meanwhile, Ghana’s National Financial Inclusion and Development Strategy (NFIDS) 2018–2023, has innovation as the main underlining theme in its five pillars of financial sector development: Financial Stability; Access, Quality, and Usage of Financial Services; Financial Infrastructure; Financial Consumer Protection; and Financial Capacity.
Ghana, however, dropped in the 2021 Global Innovation Index (GII). Ghana ranks 112th among the 132 economies surveyed, compared to 108 and 106 in 2019 and 2020, respectively. While Ghana’s position has declined over the period, it is worth noting that almost every country increased the pace of innovation when COVID-19 hit.
A study from Fraedom, a global financial technology company, showed that 95% of business customers who use digital banking in their personal lives expect the same digital experience for business. This means that retail/personal banking received more attention on digital innovations than commercial/business banking and there is a need to replicate the feet in the personal banking space. According to Mr. Asante, this is likely to apply to the Ghanaian market.
“Even though this situation and many others present opportunities to banks in Ghana to create more value for customers and other stakeholders, without continuous innovation, it will be difficult to effectively and efficiently derive the right value from the opportunities”.
Mr. Victor Yaw Asante
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