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HOW FINTECH IS DISRUPTING BANKING SYSTEMS IN AFRICA

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The need for African banks to innovate at a quicker pace and access new customer segments is behind the increasing number of financial institutions partnering with or investing in fintech startups.

“It used to be quite simple. Customers arrived at banks through the revolving doors and opened accounts or applied for lending in-store. Banks owned the customer relationship by default and ‘see my bank manager’ was a common term,” says Mark Fitzgerald, Director – Government and Enterprise at FaceMe

Fast forward, and technology has altered the way in which business communicates with consumer. The new customer landscape, along with today’s technology, pose notable threats that outweigh the former challenges wrought by Web 1.0. What happens when a third-party website aggregates the best deals on current accounts for the consumer, much like the ‘get ten instant quotes’ websites that disrupted insurance – whose customer are they? What happens when that aggregation service is an app – does the owner of the app get a sliver of the relationship pie too? And then there’s what Forrester calls Amazon’s customer relationship ecosphere around tens of millions of customers. The group warns CMOs to learn from and even imitate Amazon, but to “stay tethered to their consumers as Amazon envelops their shared customers in a cozy cocoon that will influence their use of every possible service.”

fintech in AFrica

Picture from Nash Tech

In today’s banking environment, connection is up for grabs – but when owning the customer relationship is anyone’s game, how can banks make sure it’s theirs?

Fintech, meet banking
Investment in fintech sector is seen as an investment hot ticket. While the 2015 edition of the EY FinTech Adoption Index estimated that fintech was still in its infancy, the 2017 edition found that adoption had risen dramatically to one in three. “But while it’s clear that digital start-ups and first round investments in fintech are growing and that the digital revolution in banking is well and truly here, what hasn’t yet been mapped is the impacts on banking’s biggest players,” says Fitzgerald.

Read Also: Diamond Bank Launches Artificial Intelligence — Game Changer For Our Banking Systems

Disrupting BAU
In its report, Banking disrupted, Deloitte suggests that the future of European retail banks is looking rather grim. Rocked by the wake of the financial crisis and the ongoing shakings of re-regulation, retail bankers face the threat of today’s “de-banked consumer”. Open Banking in England is demanding that Britain’s nine biggest banks crack open their customer data to third parties upon customer consent, with the aim of improving price comparison and boosting account switching.

Through platforms like WhatsApp, cash can be transferred by way of instant message (as opposed to the multi-layered authentication process required by your bank app.) Beyond financial transactions, Open Banking will integrate services from third parties, allowing lifestyle choices to be made quicker and easier – for example, the same interface will help you find and finance a new car.
The new breed of customer

“In short, the silos of traditional retail banking are coming down, giving way to a more personalised and self-regulated form of financial management. Today’s customers expect to engage directly and immediately with their retailers. Needs are not only to be met, but to be anticipated before they arise, and service must be a fluid, intuitive and integrated extension of their lifestyle,” says Fitzgerald.

Previously banks were able to make small, incremental changes to meet the first internet-based challenges. But today’s ongoing digital disruption and re-regulation offer a tsunami of change that has chipped away at the competitive advantage banks used to enjoy. Deloitte believes the challenge “is not that any single new entrant or model will emerge to dominate their market. Rather, the risk is that the combination of attackers across the banks’ eco-system will steadily erode their core competitive advantage, resulting in a much smaller banking sector.”

Fighting back
If banks want to win the game, they’ll have to win the customer relationship. If they don’t own that relational space, someone else will.

“FaceMe encourages banks to take a few steps back – enough time to extract themselves from the hamster wheel of optimising short-term profitability – to consider a longer-term vision that can buffer future uncertainty and innovation,” he cautions.

The future of banking is cryptic, and fintech is rewriting the rules as we go. But the more we can capture the unchanging power of human relationships and prize the customer experience, the greater chance we have to outwit disruption.

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Entrepreneurship

Meet Africa’s Lead Social Entrepreneur

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Javnyuy Joybert is a Social Entrepreneur, Empowerment Strategist, Enterprise Development and Corporate Trainer/Consultant, Skills Development Expert and the Co-Founder/CEO of COSDEF Group which is an African holding Social Innovation Enterprise with 4 subsidiaries namely The Centre for Entrepreneurship, Leadership & Business Management Development (CELBMD) Africa, Wikajobs Career Management Firm, COSDEF Mobile  Microfinance, Skill Study (E-Learning) and other initiatives which include Social Innovation Hub, Rural Driven Empowerment and Pan African Social Entrepreneurship Fellowship (PASEF)

Javnyuy is a certified trainer by The American Entrepreneurship Foundation (AEF) California USA, he is a highly sought after enterprise development trainer (Business Coach), consultant & speaker, author of several articles that have been published on several platforms & magazines across Africa. Javnyuy speaks in averagely 200+ capacity building workshops, conferences, corporate events yearly across Africa reaching thousands in the areas of enterprise development, corporate efficiency, process innovation, strategic execution & personal development. He is the author of one of Cameroon’s sought after personal efficiency book “35 Days of Re-Defining You for Success” and Co-Founder and COO of The 50 Most Influential Young Cameroonians Awards Initiative.

Javnyuy is a Member of the Global Youth Skill & Innovation Council, featured as the future leader of World Economic Forum Davos (Switzerland), Global Youth Ambassador, Motivating Africa Ambassador and alumni of the Cameroon Leadership Academy Fellow 2017

He has 4 years’ experience lecturing entrepreneurship, business management & marketing courses in two private universities in Cameroon that is International University of Bamenda and Impact Polytechnic Kumbo. 3 years’ experience training social entrepreneurship, organizational leadership and executive skills with the African Entrepreneurship Academy (AEA) Accra Ghana, 2 years’ experience training executive skills with Power & Wisdom Bible and Leadership Institute Buea, senior trainer & consultant with Vocational Center for International Development, Country Director Consultant, Head Trainer with Christian Life Training Organization, International Career Coach with MARLEQ. Javnyuy have offered hundreds of management and organizational leadership, corporate training programs, team building programs, talent development, work place efficiency skills, organizational productivity strategy trainings to several national and multinational organizations, government agencies, religious organizations, startups among others.

Javnyuy together with his close friend Agbor Franklen Co-founded AFA Designs Software Development Firm which focuses on developing innovative tech solutions for African businesses. AFA Designs have served over 100+ businesses across Africa in diverse sectors like E-Commerce, education, agriculture, not-for-profit, churches etc. Under the leadership of Javnyuy, the AFA Designs team is responsible for Afamuziq app (Download on play store) which is an innovative stylish music player, entertainment partner which gives you full control of your entertainment, enhancing your sound quality, let you share the song you listening with friends and loved ones, Stream favorite sound tracks (Audio and Videos) online, view on playing song lyrics, connects you to your favourite entertainment platforms and blogs with just a click, Mobile TV connecting you with your favourite stations on the go and just much more

Education & Professional Accreditations

Javnyuy has a well-balanced education credentials. He completed his Bsc program in Financial Management in International University Bamenda, he is a certified trainer by the American Entrepreneurship Foundation, Certificate program in Entrepreneurship & Leadership from YALI Regional Leadership Center Accra Ghana (Ghana Institute of Management and Public Administration), Certificate program in Strengthening Africa’s Public Sector Human Resource Management from United Nations Public Administration Network, Certificate program in Advance Business Management & Public Service Governance from International Governance Institute, studied Entrepreneurship and Business in Clark Atlanta University, Georgia USA under the Mandela Washington Fellowship program, Lean Six Sigma from The Hudson Strategic Group and The Quality Group, Atlanta Georgia and currently undertaking a Masters in Business Administration (MBA) with Rome Business School

Media

Javnyuy have been featured on over 100 radio/tv programs and magazines across Africa including BBC World Service, Cameroon Radio and Television (CRTV), 1000 African Voices on Channel Africa, HiTV Cameroon, LTM TV, Canal 2 English International TV, 7News TV, University of Ghana Radio, CBS Radio, CBC Radio, City Community Radio, Africa Business Communities magazine, Inspire 237 magazine, Jongo hub magazine, The Afrikan Legacy Magazine, Betatinz magazine, Konnect Africa magazine, Uphold Africa magazine, Her Business magazine Kenya, Africans Building Africa magazine among several others.

Awards and Recognitions

African Youth of the Year Award nominee 2016, Princess Kuja Recognition Award 2016, UK Base Kinnaka’s Blog Gola Project Award winner 2016, United Council for Youth Empowerment 2017 Nation & Continent Builder of the year award, Young Citizens Contributing Positively (YOCICOPO) award 2017, Voted among the 100 personalities inspiring Cameroon in 2017 by Inspire magazine, Queen’s Young Leaders Award Runner-Up Winner, Cameroon Achievers Award Entrepreneur of the week, profiled among the top 20 young CEOs inspiring change in Cameroon by Cameroon Achievers Magazine, 2018 class of 100 Most Influential Young Africans by Africa Youth Awards and nominee Digital Citizenship SDG Awards

 

Reach out to Javnyuy on

javnyuy@cosdefgroup.com or infos@celbmdafrica.org

Call: Cameroon +237 674949153

          USA +1 202 766 0280

Follow me on LinkedIn and facebook as Javnyuy Joybert

 

 

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