Post Coronavirus: Firms must stick to changes

Managing Director of FBN Bank Ghana Victor Asante has said the changes that have come as a result of the COVID-19 pandemic to business operations and regulations should become the new normal after Coronavirus pandemic.

“Why would banking move back to the pre-Coronavirus mode of operation when the potential for digital transformation has had such a significant lift,” he said.

He also questioned why a bank would require a customer to visit a branch to complete routine transactions like account opening or loan application as well as a customer also want to revert to old ways of conducting banking transactions after experiencing the convenience of a digital channel.

He said banks would implement their digital strategies ahead of their timetables and remain committed to the new methods in order to stay relevant in the banking and finance industry.

“The cashless economy agenda has been handed a great opportunity for accelerated implementation. The crisis of COVID-19 is too good an opportunity for the cashless agenda and this in all probability should not be wasted,” he added

He said banking transactions on mobile applications and other digital channels have increased significantly due to the pandemic.

For instance, he said, in the United States time spent on finance apps increased by 35percent between December 2019 and March 2020 according to Liftoff (a Mobile App Marketing & Retargeting Company) while E-commerce increased by 25percent between January 2020 and March 2020, according to Forbes Magazine.

According to Mr Asante, this validates the result of the 15th March survey of 1,000 customers by Lightico, a technology firm with a focus on digitally transforming the connection between businesses and their customers.

The result of the survey was that about 60% of the customers were more inclined to try a digital app. Similarly; the usage of blockchain payment apps has also increased. Everywhere in the world, coronavirus is expected to cause monumental growth in the use of mobile money transactions.

Mr. Asante believes that other payment channels aside mobile money will also record increased usage and will become more integrated into the payments system.

In addition, he said other aspects of banking such as relationships; retail banking and marketing may alter significantly post the COVID – 19 pandemic. According to him, “digital transformation powered by artificial intelligence (AI), which makes a high level of personalization and real-time information dissemination a key part of product development, innovation and marketing will receive a huge boost”.

He, however, cautioned against challenges that could emanate from the digitization process, especially fraud. The report of Transunion’s global fraud and identity solutions division showed a 347% upsurge in account takeovers. In this regard, the MD of FBN Bank acknowledged that as digital channels increase, so will the routes and opportunities that will be available to fraudsters. He, therefore, admonished banks and banking professionals to concern themselves with fraud management and prevention.

He said: “as banks transform technologically, fraudsters become more sophisticated. Therefore, as the industry is adapting faster and more convenient channels, banks now more than ever require potent fraud management strategies to stay ahead of the fraudsters”.

“Cyber security’s place in banking and finance has just shot up to number one on the risk agenda. The issue of the cost of business is another area he commented on, drawing attention to the fact that Banks would have to accelerate spending plans on digital platform roll out as the issue has moved from just being a competitive advantage to that of health and safety.

Digital platforms used to be about banking convenience, but now all of a sudden it is also a health issue, he added.

He also reckoned there will be strict regulation and supervision to match the times.

According to Mr Asante it is common to record changes in business performance as a result of unforeseen situations. Such will be the case for this COVID – 19 pandemic which has directly affected over 2.6 million people across the world and has already resulted in the death of over 180,000 people.

“A lot changed overnight, with businesses and organisations requiring to change the way they conduct business,” he said.

He said during the outbreak, the World Health Organization (WHO) suggested people turn to cashless transactions to halt the spread of the virus, a piece of advice many governments and businesses acted upon.

In Ghana, for example, one of the first steps the banks took was to step up the provision of digital banking alternatives for customers, he added

He said mobile money transactions were also made cheaper and more flexible by Telcos. As a result, transactions that could be handled online have been moved online. In addition, working from home, which many employers dread due to possible productivity loss has become routine with employees also having to adjust to new work culture.