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How banking innovations can empower Namibians

There is a concern that financial institutions are forcing innovation on customers and are not being mindful of the needs of all Namibians. This article wishes to demystify some misconceptions regarding banking innovation.

In the past, the global banking sector has been at fault for digitising analogue processes and specific tasks and calling it innovation. This approach did not sufficiently harness the power of innovation to put the customer first. Thus it is understandable that people, forced to change their banking habits, felt excluded.

A report by Deloitte Digital, “Digital banking redefined in 2021”, found that digital innovation may create opportunities to build trust through intimacy, relevance, and perceptiveness. This means that there is a drive to create new and innovative ways that enhance the banking user experience and put the customer first no matter where they live.

Digital channels allow people to access their money and bank and complete specific tasks anytime. As we transform digitally, Bank Windhoek also recognises the importance of repurposing its physical footprint, namely ATMs and branches. We want our branches to become a place for value-adding interactions, like advising customers on the right product, investment education or structuring the appropriate loan structure for clients. We will digitally enable our branches with innovative and data-driven solutions to make the branch journeys as seamless and intuitive as possible. ATM functionality is constantly being enhanced to expand banking services such as installing contactless-enabled features across cash-accepting ATMs.

In 2016 the World Bank introduced the Digital Adoption Index (DAI), which measures countries' digital and technological maturity.On a scale of 0-1, Namibia recorded 0.38. The Central African Republic has the lowest score of 0.15; South Africa, 0.63; and Botswana has 0.47. The DAI is measured across three areas: people, government, and business. Namibia's sub-index score for business is 0.50, for people is 0.33 and for Government is 0.31.This index was compiled long before the COVID-19 pandemic.These figures show Namibian businesses outpacing the country’s people regarding digital adoption. There is a high need for Namibian businesses to educate the public on the importance of digitalisation and its positive impact on customer service.

The World Bank's World Development Report 2016: Digital Dividends, aims to help people understand how digital innovation can increase growth, jobs, and services. It illustrates how digital technology drives innovation and efficiency, puts the customer first and enables banks to better interact with customers.

Namibia is a unique country, and innovation may differ from anywhere else.We must keep this in mind as we champion a customer-centric approach to banking innovations that improve Namibian lives.

*This is a shortened version. To read the full article, please visit Bank Windhoek’s website at www.bankwindhoek.com.na


Ryan Geyser
Bank Windhoek’s Head of Digital, Data, and Customer Transformation