Johannesburg, 16 Aug 2005
Banking customers in Africa are becoming increasingly sophisticated as technology revolutionises financial service delivery, says Juma Dalmas Menya, business automation and payment systems specialist at Consolidated Bank of Kenya.
Speaking at Terrapinn`s Banking Technology Africa 2005 conference in Sandton this morning, Menya said that at the same time, technology has become a tool for competitive advantage and reducing costs.
Although cash is still the dominant form of payment in Kenya, financial institutions are expanding self-service functionality in a bid to drive down costs, increase revenues and improve customer relationship management.
"In Kenya, cash is still king, but people are realising the risks associated with cash and moving towards electronic payment methods," he says.
Most large retail banks in the country have developed and implemented their own Internet banking portals, and the smaller and medium-sized banks are following suit.
However, only about 14% of bank customers use the Internet for that purpose. Most customers prefer ATMs. Some banks have introduced smart cards, while mobile payments are also widely accepted.
"The Internet is emerging as the priority channel for technology investments, because it is cheaper to enable an online portal than an ATM," he says.
Godwin Emefiele, deputy MD of Nigeria`s Zenith Bank, says Nigeria is also predominantly cash-based.
"But we have recently seen a high rate of increase in bank robberies," he comments, adding that banks in the country set up a committee to determine how the amount of cash being carried around could be reduced.
"We are seeing an increase in the use of plastic cards, preloaded with a value, and we are also seeing the emergence of debit cards."
He adds that customers can now connect to the bank via the Internet, but Zenith is also establishing virtual private networks, which are gaining ground.
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