This archive report was first published on 10 May 2020.
As the COVID-19 pandemic continues to reshape the world, Kenyan banks are accelerating their digital transformation to ensure seamless financial services access. In a recent CEOChat session hosted by Citibank CEO Martin Mugambi, the focus was on the role of digital platforms in banking.
According to Mugambi, digital platforms encompass a wide range of technologies, including apps, mobile banking, APIs, smart digital tools, and AI-powered solutions that remove friction in banking. These platforms enable customers to interact with their banking partners and other ecosystems in a virtual environment.
One key aspect of digital banking is the ability to provide retail customer support through intelligent digital platforms that use data and automated solutions. Mugambi emphasized that automated or self-service banking is the new normal in retail service models.
However, numerous customers remain concerned about the security of their funds and data as Kenyan banks digitize and automate their processes. Mugambi reassured clients that security is at the forefront of all transactions, with banks placing significant efforts on cybersecurity to ensure the platforms are safe and fit for purpose.
To mitigate security risks, banks are implementing measures such as two-step login processes to authenticate and validate access. Mugambi stressed the importance of consumers being vigilant in not sharing PINs or passwords with others and taking precautions with their mobile devices and financial information.
The KBA KAA CHONJO campaign teaches customers how to safeguard and protect themselves while banking digitally.
Looking ahead, Mugambi believes that automated or self-service banking will be the new normal. The pandemic will change banking in material ways forever, with banking no longer being a physical construct and financial services being provided by banks and other entities. Tailored financial solutions, frictionless payments, online marketplaces, and digital service centers will be the new norm for banking.
APIs or application programming interfaces will be the next smart way in which banks interface with their corporate customers. APIs are resilient and safe because they are exposed to partners in a managed ecosystem. For instance, some bank APIs connect to SWIFT, ERPs, and other corporate files to exchange data in a secure environment.
Currently, banks are working to ensure customers survive the pandemic by restructuring loans for personal and corporate customers, providing working capital for SMEs, waiving bank charges to facilitate mobile payment transactions, and offering a variety of digital payment options to mitigate the use of cash or visits to banking halls.
