Trends set to impact Nigeria’s banking industry – Business

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Nigerian banking ecosystem is changing. The increasing use of the Internet, as well as the growth of advanced technological innovations in the financial services sector, are shaping the emergence of digital banks.

So far, the impact of the Internet economy and digitization in the banking industry has been observed in increasing the transition to retail banking services and using channeling channels, which also led to improved financial integration. According to the Central Bank of Nigeria (CBN), the total amount of electronic payment transactions (electronic payments) registered in 2017 increased by 32.5 percent to N83.1 trillion. In 2017, with N62.7 trillion. Registered in 2016.

As digital transformations continue to shape the way banks do business, the technologies we know are moving at breakneck speed, and numerous trends will continue to emerge and contribute to disruptions in the banking sector. This is not far-fetched due to the growing attention to consumer experience, compliance and joint competition.

Financial technology (Fintech) has recently been a change of game, and there is no doubt that she is here to stay. After the transition to the Epoch of Experience, as Brett King, the CEO of Moven asserts this; fintech has moved from a basic application for financial institutions to any technological innovation in the financial sector, including innovations in financial literacy and education, retail banking, investments, loans and credits, and even cryptocurrency.

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Trends tuned to impact Nigeria’s banking industry

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Fintech's improvement has increased, and banks have become more customer-oriented, while also providing cross-channel opportunities through which customers can deal with them. It is expected that more of this will continue in the future, especially when banks continue to introduce innovations and try to stay on the neck with new technologies and cooperate with Fintech companies, and not consider them as a threat to their business.

Even large banks in the Nigerian market with huge investments in legacy systems are starting to adopt more agile / dynamic operational approaches and introduce products that are in sync with the evolving digital economy. Zenith Bank Plc, for example, has implemented several new solutions that allow their customers to make transactions more conveniently, safely and quickly.

These include the Scan to Pay for Bank application, which can be used by Zenith and non-zenith customers to make online and in-store payments in a few seconds by quickly scanning the QR code on any Internet phone. The Bank’s mobile application is also very functional, easy to use and offers enhanced functionality, such as instant opening of an account for a new client, while the * 966 # Eazybanking service is now a favorite transaction channel for millions of Nigerians.

Another trend that is rapidly becoming a reality is the use of artificial intelligence (AI), since big data makes it easy to integrate into our daily lives. AI is expected to help banks easily automate processes and improve customer service. This will further affect the way banks perform their financial due diligence, especially in risk management, credit allocation and fraud detection.

With regards to acquiring and retaining customers, AI will be of great importance in providing information about customer behavior and preferences that will help develop personalized answers, ideas, and types of products / services adapted for each person. Imagine that you can warn a customer about a decrease in his deposits when he exceeds a threshold value, and then offers a product related to a loan; or the ability to predict customer interests based on their output models.

With Blockchain, Robotics, and Chatbots, which are more widely recognized, investment in AI is made in the Nigeria banking industry. A notable step in the industry is the adoption of the Enterprise Risk Management Framework and the use of enterprise resource planning sets.

While banks are cautious about cloud computing, an increased need for rapid deployment and accelerating the transition to market innovations in the digital economy can be achieved through Cloud technology. Thus, for firms that seek to take advantage of scalability, reduce costs, ease of operation, and fault tolerance; cloud platforms will become a way for you. However, as Capgemini advises, "it is expected that banks will own and manage the cloud themselves with service providers, gaining more and more control and ownership of the cloud infrastructure as cloud computing maturities become more accessible."

Along with investments in big data technologies, banks now have to worry about the type of data collected, as well as the accuracy, availability and security of such data. With the introduction by the European Union of the General Data Protection Regulation (GDP), data management will become a priority for financial institutions, as it forces both the institution and its support functions to ensure compliance.

Although AI helps identify customer needs and value-added services that can be adapted to meet those needs; Customer loyalty programs are specific vehicles that help influence their effect on patronage and retention. As customer experience becomes more focused, banks like Zenith are leveraging their customer service networks; Improving loyalty programs, such as using loyalty cards, incentive cards, promotions, etc., will remain a key factor in retaining customers in the banking space.

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