COVID-19: African banks under pressure to accelerate digital transformation

COVID-19 pandemic has increased digital ways of spending, borrowing and lending, and making payments drastically. In a post-COVID-19 Rwanda, this is only going to increase financial institutions supported by economic policy changes from regulators, and national banks will have to prioritise digital transformation. CNBC Africa spoke to Samuel Tayengwa, acting CEO at TransUnion to expand on what a post-COVID-19 Rwanda will look like and what banks and businesses should be working on to be.

Fri, 26 Jun 2020 14:35:20 GMT

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AI Generated Summary

The COVID-19 pandemic has led to a surge in digital transactions, prompting national banks in Rwanda to prioritize and accelerate their digital transformation efforts.
Policy changes and regulations have played a crucial role in supporting digital advancements in the banking sector, with Rwanda's central bank increasing mobile payment limits to facilitate transactions during the lockdown period.
Ensuring robust security measures, optimizing user experience, and focusing on efficiency are key areas that companies and financial institutions need to address to successfully navigate the shift towards digital and mobile services.

The COVID-19 pandemic has drastically increased the digitalization of financial transactions, pushing national banks to prioritize and accelerate their digital transformation efforts. In a post-COVID-19 Rwanda, this trend is expected to continue, with financial institutions needing to enhance their digital capabilities to meet the evolving needs of customers. CNBC Africa recently spoke with Samuel Tayenga, the acting CEO at TransUnion, to delve into the implications of this digital shift in Rwanda and the measures that banks and businesses should take to adapt. Tayenga highlighted the significant role that policy changes and regulations have played in supporting these digital advancements. In Rwanda, for instance, the central bank raised the limit for mobile digital payments to facilitate transactions and ensure continued access to financial services during the lockdown period. This regulatory support has been instrumental in enabling financial institutions to enhance their digital offerings and cater to the changing preferences of consumers. While Rwanda has demonstrated a proactive approach to digital transformation, Tayenga emphasized the need for robust security measures to protect customers engaging in online transactions. Implementing tools such as biometrics, facial recognition, and voice recognition can help mitigate security risks and ensure a safe digital banking experience. In addition to security, Tayenga stressed the importance of optimizing user experience and efficiency in delivering digital and mobile services. By leveraging data from trusted sources and engaging with key stakeholders in the market, banks can enhance customer interactions and streamline the digital service delivery process. Ultimately, the success of digital transformation in the banking sector will hinge on the ability of institutions to prioritize customer convenience, security, and seamless engagement in a post-COVID-19 landscape.