‘Banks should invest more on digital infrastructure’

THE financial services sector should upscale investment on digital infrastructure to enhance business efficiencies and client satisfaction, which is critical to business growth and sustainability.

This emerged during the Institute of Bankers of Zimbabwe (IOBZ)’s two-day summer school held here between Friday and Saturday where debate regarding embracing digital technological developments took centre stage.

The IOBZ is the academic side of bankers while the Bankers Association of Zimbabwe, is the employer. Professor Tshilidzi Marwala who is Vice Chancellor of University of Johannesburg delivered the keynote address in which he stressed the importance of embracing the 4th industrial revolution in business modelling.

“In terms of infrastructure, banks should have their own digital infrastructure as opposed to relying on telecoms companies. We need to upscale as bankers and work as a sector if we are to do big in digital infrastructure and keep pace with the industrial revolution,” he said.

IOBZ chairman Mr Admire Kandlela, who is the chief executive of the Peoples Own Savings Bank (POSB) said digitalisation was critical and was at the core of banking.

“This is the Institute of Bankers of Zimbabwe, which every bank contributes to. We always have summer school and so this is our summer school where the theme is ‘The 4th Industrial Revolution’.

“The 4th Industrial Revolution is talking about digitalisation and how all processes — physical, biological and the digital aspects are all fused into one to service banks,” he said.

“This is a challenge we always talk about that most workers are not going to banks themselves because they are now doing banking on their phones. So, it’s a challenge to employment as well but also a challenge for workers to improve on their skills so that they can be retained.”

Acting director of the Consumer Council of Zimbabwe Commissioner, Rose Dube, said the digital era has changed the way of doing business.

She said consumers and shops alike face challenges associated with network connectivity when using online point of sale machines hence the need to take urgent measures to address the issue.

“According to United Nations guidelines, member states should work towards enhancing consumer confidence in e-commerce and continue to expand consumer empowerment through education and business guidance in line with digitisation to satisfy the consumer,” she said. “There is need for financial literacy among customers and this can
be done through consumer awareness.”

Standards Association of Zimbabwe (SAZ) director Dr Eve Gadzikwa urged banks to strive to meet standards in their operations to meet customer needs saying customers would reject substandard services. – The Chronicle