Mobile to remain the biggest technology next two years – CEO Chat
By David Indeje / October 6, 2017
In Kenya, mobile continues to become the main way most consumers interface with their apps, banks, and more.
For instance, the country was ranked number one in inclusive financial services by the Brookings Institution’s 2017 Financial and Digital Inclusion Project with an overall score 86 percent compared to 2016 score of 84 percent.
Cytonn Investments attributes this to mobile and digital channels.
“Financial inclusion in Kenya has continued to rise, with the percentage of the population living within 3 kilometers of a financial services access point rising to 77.0 percent in 2016 from 59.0 percent in 2013.
This has been driven by digitization, with Mobile Financial Services (MFS) rising to be the preferred method to access financial services in 2016,” in their Kenya Listed Commercial Banks Analysis Cytonn H1’2017 Banking Sector Report.
This was attributed to the widespread use of mobile money solutions and adoption of the service among traditionally underserved groups.
David Thuku, Family Bank, Chief Executive Officer in this week’s’ CEO Chat ‘Digital Innovation and Banking ‘organised by the Kenyan bankers Association (KBA) says the trend will not likely fade.
“In my view, over the next two years, the biggest technology will still be mobile technology, which basically now has taken center stage in the lives of customers — in everything that they do. The universality of the Internet of Things will continue to dominate the narrative.”
However, he also said the greatest challenge to digital innovation is the mindsets of players. “The human tendency to want to maintain status quo is actually the biggest challenge. Within the banking industry, the need to balance risk and customer centricity has in a way made banking seem to lag behind their customers.”
Thuku further stated that with the impact of digital transformation, the focus will be on the customer.
“The reality is that boundaries — between industries, between customer segments, etc — are fast disappearing, as the focus gets to understanding the customer and what they need. Whoever understands, regardless of the industry, will continue to remain relevant,” he says.
“With regard to the regulatory environment, the focus then becomes ensuring that the needs of the customers are being met in the best way,” he adds.