Retail banking technologies you'll see in the next 3 years

Robert Aderinmola, Customer insight and Analytics partner, corporate planning at Diamond Bank joins CNBC Africa to discuss the trends that he expects will drive retail banking over the next 3 years.

Tue, 17 Oct 2017 14:01:19 GMT

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AI Generated Summary

The successful issuance of a Eurobond by fidelity bank at a coupon rate of 10.5 percent signals a positive outlook for tier two banks in Nigeria, opening up opportunities in the Eurobond market and reducing interest rates for banking operations.
Foreign investors' participation in the refinancing of existing Eurobonds by fidelity bank reflects growing confidence in Nigerian banks and the financial system, potentially impacting risk assessments and investments in other banks.
Technology disruption is reshaping the retail banking sector in Nigeria, with banks focusing on innovative partnerships and digital solutions to cater to a diverse customer base, from millennials to older demographics.

The retail banking sector in Nigeria is experiencing a wave of innovations and opportunities, with key players like fidelity bank leading the way in tapping into emerging markets. The recently issued Eurobond by fidelity bank at a coupon rate of 10.5 percent has set a positive outlook for tier two banks in the country. This move is expected to open up doors for other banks to explore opportunities in the Eurobond market. The reduction in interest rates that comes with such ventures can have a ripple effect on the economy, stimulating growth and making financing more accessible for banking operations. As Robert Aderinmola, Customer insight and Analytics partner at Diamond Bank, points out, this trend is likely to be followed by more banks in the coming years as they seek to secure affordable finance and expand their operations. Foreign investors' positive response to Nigerian banks, as evidenced by over 60 percent of existing Eurobonds being refinanced by fidelity and the participation of over 100 foreign investors, reflects a growing confidence in the country's financial system. The risk assessment of fidelity bank can also have a spillover effect on other banks in Nigeria. Looking ahead, technology disruption is expected to reshape the retail banking landscape in the next two to three years. Banks are increasingly leveraging technology to reach a diverse market segment, from millennials to older demographics. Partnerships between banks and non-traditional players are on the rise, enabling the delivery of innovative services to customers. This trend is exemplified by collaborations between Nigerian banks and global giants like VISA, paving the way for more such alliances in the future. With the macroeconomic outlook for Nigeria showing signs of improvement, including declining inflation rates and expected GDP growth, the stage is set for retail banks to capitalize on emerging opportunities and drive growth in the sector. The regulatory environment is also evolving, with efforts towards foreign exchange rate convergence and potential adjustments in key policy rates. Retail banks in Nigeria are poised to navigate these changes and leverage technology to enhance customer experience and expand their market reach.