Banking in MENA enters digital transformation period
Charles Habak, principal, Financial Services at Booz Allen Hamilton talks banking in the digital era
Booz Allen Hamilton has predicted that the banking sector in the Middle East & North Africa is entering a digital transformation phase.
According to Charles Habak, principal, financial services at Booz Allen Hamilton, this new phase will provide a positive impact for financial institutions that adopt a top-down, concerted approach to the digital era.
Habak revealed that there are five key trends the digital banking era will face in 2017.
Digital banking: Digital banking requires a new business model with stand-out value propositions and competitive pricing, while achieving lower operational costs, this will then lead their brand into the digital era.
Big data and analytics: Awareness is gaining traction, and well-managed banks are expected to start assimilating big data and advanced analytics into their most important customer journeys, and progressively adapt their management styles accordingly.
Cybersecurity: On the back of increasing cyberattacks and breaches in international and regional financial institutions, cyber security will, for the first time in the MENA region, emerge as a top priority. Financial institutions that are ahead of the curve and effectively embed cybersecurity into their risk frameworks will invest significantly in building the right capabilities and governance structures. These, in turn, will equip them to pre-emptively address incidents that could potentially damage their operations as well as reputation.
Advanced digital: Customers continue to expect more from their banks; they want speed, ease-of-use, limited cost and transparency. As a result, we expect to see opportunities emerging in more advanced areas such as predictive analytics, machine learning, wearables, robot advisory and customer support, to name a few, which have largely been nascent in the region to-date. Banks that leverage such technologies underpinned by sound business cases and clear customer scenarios will benefit in the short-term from greater brand recognition. In the medium-term, these technologies will help build a foundation for the required capabilities to capitalise on the next wave of customer demands.
Specialised job creation: Personnel will be added and play an increasingly important role in areas such as data science, UI design, customer experience design, digital application development, digital payments, cyber security and digital governance.