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Digital transformation, allied risk management remain key priorities for local banks—EY

More details have emerged from the recent ‘Global Banking Outlook 2018’ on Nigerian banks released by experts at Ernst and Young (EY), leading global analysts on banking trends.

According to the lead analyst, Global Banking & Capital Markets, Ernst and Young (EY), Karl Meekings, whereas digital transformation a key priority; associated risk management is also critical in the digital maturity drive of every financial institution.

He emphasized that beyond profitability in digital innovations, there is strong need for real care on issues of risks and digital security to safeguard covered feats in the life of financial institutions.

He further stressed that “In all things, digital maturity is the mot du jour or word of the day for the future success of banking and noted that in a healthier banking industry, the mood of bankers are buoyant, banks are more resilient with remediation fading.

Meekings argued further that “Globally, banks capital is improving and bank litigation expenses falling, widening jaws will improve profitability Revenues are expected to grow but so too are costs in most markets.”

In his presentation at a breakfast meeting, Meekings said while Nigeria banks are currently maturing digitally by 33 per cent, it’s expected to become digital leader by 56 per cent in 2020 based on the needed investments on issues of digital security.

Continuing, EY expert added that“Few banks are digital mature today, but most expect to be in 2020. Banks are increasing their investment, Nigeria will lead the way. Investment is focused on the growth agenda.”

Also speaking, Technology Consulting Leader, EY West Africa, Adedapo Adewole, who dwelt on ‘Creating the bank of the future’, observed that traditional financial service players are becoming less relevant while innovators are taking advantage of market trends and changing consumer expectations.

To him, “Fintech players have also become very active in Nigeria and the digital space is expected to enhance customer experience, optimise or reduce costs, enhance revenues and empower employees”.

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